When you’re buying your first home, there any any number of costs that can slip your mind in the excitement. After you’ve set down that 20 per cent deposit, it can be easy to get carried away and forget about the additional sums that come with setting up and maintaining a home. To help you stay on track and aware of those extra payments, here are some of the most common costs that can sneak by.
Home loan costs
If you’ve been slaving away to save for a deposit, finally getting a hold on of the finance to purchase your home might seem like the end of the road. But the fun doesn’t stop there. Be aware that you’ll also need to make a number of fees for arranging the home loan, such as a settlement charge, service fees and, if you’ve chose a fixed rate mortgage, a tidy sum to lock the rate in place. It’s worth getting some advice on this, especially if you want to set down a repayment schedule.
While it’s important to be across all the legal ins and outs of the sales process, costs for a solicitor or conveyancer can stack up quickly. This isn’t something you’ll want to skimp on, though. They can organise the title transfer, be present during negotiations and help you decipher the contract – and, in fact, they can make the legalities of the sales journey a whole lot simpler for you!
As in love, as with taxes, stamp duties are often commonplace when buying a property. It is a tax on the purchase price of the house and can be a significant proportion in many cases. Each local government typically has their own levy, so investigate what you’ll need to pay when buying your first home. Keep in mind that there’s often a set timeframe in which you’ll need to pay, which is generally before settlement – stay within it and all will be well!
It’s crucial to be prepared when going into your first home purchase. If you’ve got any more questions, your local real estate agent can also inform you on what you’ll need to pay before and after the transaction.