When it comes to buying a new home, there are numerous expenses involved other than just the cost of the property itself. Paying fees to lawyers, removal costs, renovations and more are just some of the expenses that you can expect to pay when buying a new property. There are expenses and costs that you probably know about and expect, and then there are others that you may not have realized you will need to pay or even considered. In order to save you from any nasty surprises related to costs when it comes to buying your new home, we’ve put together a list of hidden costs that you may find that you’ll need to pay.
Legal Fees
Although you may have already considered this, it’s important to understand just how high your legal and finance fees could be, as many home buyers often underestimate this expense. When choosing a conveyancing lawyer, it’s a good idea to ensure that you shop around and get different quotes first to make sure that you get the service that is the best value for money. Although many conveyancing services Melbourne operate on a ‘no buy, no fee’ basis meaning that if the sale falls through for any reason you will not need to pay the conveyancing fee, it’s important to note that there may still be charges that you will need to cover.
Stamp Duty
Stamp duty is a tax that the majority of home buyers are required to pay, and you will need to include stamp duty payments in your budget. If you are dealing with the purchase of properties for commercial, residential or retail use, you will be required to pay this. Although there is no stamp duty on mortgages, you will more than likely need to pay the government at the time when you register your mortgage. The amount that you will be required to pay depends on a number of different factors, such as the area where the property is located .
Building Inspection
Before you commit to buying a property, it will be recommended by your solicitor or conveyancer that a building inspection is carried out. This is done in order to find any hidden issues with the property, and the result of the inspection will be able to give you a complete overview of the state of the property which you are planning to purchase. Qualified building inspectors are skilled and trained in spotting problems which may be unnoticeable to the untrained eye, which is why carrying out a building inspection is important in order to find any electrical faults, plumbing issues, asbestos, damp problems or other issues that you or the previous owners may not have noticed.
Insurance
As a borrower, you may be required to pay insurance on your mortgage which will cover you in the event of any defaults on payments. If you borrowed more than 80% of the property’s total price, you will most likely need to pay this. It is normally paid as a one off premium payment rather than a monthly fee, and the cost will depend on the amount that you have borrowed and the price of the property. You should also take into consideration the other types of insurance that you will need when buying a new home. You should take out home insurance in order to protect your property against damage, and many homeowners also choose to take out contents insurance to further protect their belongings.
Moving Costs
When it comes to buying a new home, moving costs often take up a large chunk of the budget, especially if you are moving some distance away from your previous home. You will need to book a removals service to transport your furniture and belongings from your previous home, and the cost of this will depend on a number of different factors including the length of the journey and how many trips need to be made or how many vehicles need to make the trip. You may be able to save money by hiring a truck that you can drive yourself, or asking friends and family members to help you transport your belongings to your new home. If you prefer a removals company, independent removals services are often cheaper than large companies.
