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The hidden costs when buying a property

Oktay Sengoz

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25/10/2022

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1 min read

Whether you’re a first home buyer or you’ve purchased property before, there are hidden costs that most people forget. Stamp Duty is the main one, which some first home buyers are exempt, but there are other fees to include in your budget.

In addition to Stamp Duty, there are many other fees to consider when buying a property. These fees may seem negligible when considering the amount of money you are spending on a property, however minimal they still need to be paid.

Here are the fees to add into your budget

Solicitor fees

A solicitor will review contracts, facilitate the settlement and give you advice on the contract. Usually, a conveyancer will charge around $1,500 and a solicitor will charge around $2,000 or more.

Inspection fees

In addition to the solicitor professional fees, you also have to pay for reports such as the strata report if it's a unit or pest and building inspection report for houses. These fees are paid upfront when you order the reports. Strata searches are around $300 and pest and building reports start from $500.

Bank fees

Most major banks and lenders hardly charge an ‘establishment fee’, however they will charge legal fees and settlement fees. Some lender will charge an annual package fee, which is paid as soon as the loan has settled and then on the anniversary of the loan settling. These fees range from $199 to $399 each year.

Government fees

The government will charge a title registration fee when your solicitor registers the property into your name. If you have a mortgage on the property, then you will also pay a fee for the lender to register the mortgage on your title. These fees usually start from $149 each.

Don’t get caught short when buying a property, have a buffer and consider the above fees when purchasing a property.

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