Buying a property is a big step, whether it’s your first home or another move on the property ladder. While most people focus on the purchase price, there are quite a few additional costs that can catch buyers by surprise. Understanding these hidden expenses can help you plan more effectively and avoid any unwelcome stress at settlement.
Stamp duty
Stamp duty is often the largest extra cost and varies depending on the value of the property and your personal circumstances. In Victoria, first home buyers may be eligible for concessions or exemptions, but for many, this is still a significant outlay that needs to be factored in early.
Conveyancing and legal fees
Conveyancing ensures the legal transfer of a property is completed correctly and without issue. While it’s an essential part of the process, it does come with fees. These can vary depending on the complexity of the transaction and whether any legal advice is also required, for example, if the property is being purchased jointly, through a trust, or with a guarantor.
Building and pest inspections
Before signing the contract, it’s strongly recommended to conduct building and pest inspections. These reports provide peace of mind about the condition of the property and help avoid unexpected repair bills down the track. While optional, skipping this step can be risky.
Mortgage and loan fees
Lenders often charge application fees, valuation fees and ongoing account?keeping fees. In some cases, lenders mortgage insurance (LMI) may also be required if your deposit is under a certain threshold. These charges can add thousands to the cost of securing your home loan.
Government and registration fees
When property changes hands, there are fees to register your mortgage and transfer the title. These are usually set by the state government and are non?negotiable. While they may seem minor compared with stamp duty, they still add up.
Council rates and adjustments
At settlement, you’ll be asked to pay your share of council rates and any other relevant adjustments. This ensures the seller isn’t left paying rates for a period you’ll be living in the property. These amounts are calculated on a daily basis and added to your final settlement figure.
Moving and setup costs
It’s easy to overlook the practical costs of moving. Removalists, connection fees for utilities and basic maintenance tasks like locksmiths or minor repairs can quickly eat into your budget once the keys are in your hand.
Plan with confidence
Buying a property is an exciting milestone, but it pays to be informed. Our experienced team at APS can guide you through the conveyancing process and ensure nothing is missed along the way.
If you’d like to discuss your conveyancing needs further, reach out to Fedela, our knowledgeable Conveyancing Specialist and your first point of contact. She’ll walk you through the next steps, help you understand all the potential costs, and answer any questions you have.
Fedela is our talented Senior Law Clerk who joined us back in 2018, bringing with her over two decades of experience in the legal field. Fedela shines as a key member of our team, especially known for her skills in managing our client’s Probate and Conveyancing needs. She takes on a wide array of tasks, ranging from witnessing and signing wills and powers of attorney to engaging with clients, drafting essential legal documents, and expertly handling PEXA transactions. Fedela is also a Mortgage Clerk dealing with mortgage and caveat discharges and PPSR registration and discharges. She is pivotal in making our processes as clear and smooth as possible, always ensuring that each of our clients feels supported at every stage of the process. When Fedela is not in the office, she treasures the time spent with her loved ones. She’s all about the joy of discovering new shopping finds, savouring exquisite dining, and embarking on adventures to new places.