Although you might think that it’s simply the case of pulling together a deposit when buying a property, this sadly isn’t the case. A property purchase comes with a number of hidden costs which can do serious financial damage if you’re not prepared for them.
In this article, we’re going to give you the knowledge you need to anticipate these costs and adequately prepare yourself for them.
Locating a property you’re interested in
Sure, finding a property isn’t overly difficult with the wealth of user-friendly options available in the digital world. Making sure it’s up to the standard you’re looking for, however, is often a far more expensive task.
Prior to investing your hard-earned cash in property, you should be sure to get building, land, and pest inspections completely sorted – land inspections are especially important if you own a farm.
Sadly, these checks don’t come cheap. At several hundred dollars each, it’s well worth speaking with the vendor first to find out if they’ve actually carried them out themselves recently.
If you’re reluctant to fork out for these checks yourself, think of them as a pay-off insurance premium. If you get them done prior to moving in, you won’t have to pay out thousands of dollars over the next few years to find out exactly what the problem is.
Legal and lending fees
Sadly, the property sale is between more than just you, your vendor and the real estate agent involved.
The conveyancer, bank and any number of other legal and financial professionals are also going to be tied into the deal and they’ll need paying. Your conveyancer will require a fee for the services they provide, while your bank are likely to request a mortgage establishment fee.
After the sale, you’re also going to encounter the most elusive of real estate purchase costs – stamp duty. It’s likely to be the most significant cost that you come across and can reach into the realms of 5 figures.
Council rates and getting connected
After you’ve moved home, it’s not over. You should also include into your plan any costs associated with getting your gas, water and electricity set up. In some cases this will have already been done by the previous owner, but it never hurts to be prepared.
If you’re relocating into a community or strata title scheme, it’ll also pay for you to enquire about any body corporate fees. Speak with the vendor about any recent updates – if the pot is running low, be careful. A fee hike is an unwelcome surprise for anyone, let alone a new home owner.