The cost of buying a new home is not just the final sale price - there are other costs for buyers to be aware of and to factor into their budget.
Stamp duty is the land transfer duty or state tax payable on purchasing your new home or investment property. The amount payable will vary on the sale price of the property - the more expensive the home, the higher the stamp duty payable.
Currently in Victoria, there is no stamp duty payable for first home buyers seeking to owner occupy for any home purchased up to $600,000. First-home buyers are also eligible for a reduction in stamp duty for properties priced up to $750,000. Pensioners are also entitled to a once-off stamp duty exemption or concession for property less than $750,000.
Estimated cost – Calculate your stamp duty payable here.
A fee will be payable for the activities conducted by a conveyancer or legal professional to prepare the documentation for the purchase of your property. This cost can vary depending on your chosen legal representative, but also on the ownership structure of the new home.
Estimated cost – Up to $2,000
Building & Pest Inspections
Having a home checked for pest or building defects is a cost undertaken by the prospective purchaser. Whilst not as crucial in a newer home that may still be covered by building warranties, many buyers value the peace of mind that a professional report can bring.
Estimated cost – Around $600
Whilst most buyers are familiar with the ongoing costs of a mortgage, there are several other upfront costs to be aware of. As a new property owner, you are responsible for the cost of formally registering your mortgage and transferring the property into your ownership. There are also loan application and establishment costs to take into consideration - these will vary based on your broker and/or lender.
If purchasing with a deposit less than 20%, most financial institutions will require you to also pay mortgage insurance. This cost is based on a sliding scale – the smaller your deposit, the more insurance you’ll pay.
While the future ownership costs attached to the property will be the responsibility of the new owner, there may be a pro-rata payment made to the owner for any Owner’s Corporation fees, council rate or water rates already paid.
As Melbourne’s vertical living experts, Lucas provide FREE buying assistance to prospective purchasers. To find out more or for help with your next property purchase, contact our award-winning team today on 9091 1400.