As you know, the cost of buying a home goes well beyond the price of the property. These costs may have changed since you bought your first home, or there may be additional costs associated with selling that you haven’t considered. Some costs will vary depending on your state or territory.
Work these additional costs into your budget, so you know what to expect and know how much you can spend on your next home.
- Stamp Duty: this is a State Government tax based on the purchase price of the property and usually paid prior to settlement. It’s likely to be your biggest expense outside the property price, however you can increase your loan to cover this cost (conditions apply)
- Building and pest inspections: these should be completed when you are ready to buy, before contracts are exchanged, to ensure the property is structurally sound and free of termites and other pests
- Costs associated with a bridging loan, if you need to buy your next home before selling your current one
- Real estate agent fees and marketing costs for selling your property
- Registration fees: these are paid to the Land Titles Office in your state or territory when you submit any documentation relating to your property
- GST: this tax may apply to the inspection and valuation of new properties, as well as real estate agent and auctioneer’s fees on new and established properties. It’s not payable on bank charges and fees or when you buy an established property
- Lenders’ Mortgage Insurance or Low Deposit Premium: this one-off cost may apply where there is an increased risk associated with a home loan. The circumstances of your loan determine whether this may apply
- Insurance: there are various forms of insurance you will need as a home owner, including protection against theft, storm, fire, flood, damage and contents
- Legal costs: your solicitor or conveyancer should be able to provide you with an itemised quote which will include the transfer of title, property and title searches and contract reviews
- Removalist costs
- Utilities: make sure you budget for the connection, cancellation or transfer of electricity, water, gas, Pay TV and broadband from your current home to your new one
- Council rates and strata fees and taxes