logo
The “unknown” expenses when purchasing property
18 October 2016

When purchasing a property there are so many EXTRAS on top of the purchase price that some buyers aren’t aware of. When you purchase an $800,000 home you really need to factor in anywhere between an extra $30,000 – $50,000 in  EXTRAS. These include: legals, stamp duty, mortgage fees, transfer fees, building and pest inspections, depreciation reports and valuations. Not to mention actually moving (if you are moving into the home you are purchasing) and real estate fees (if you are purchasing an investment property you need to rent out). 

Here are a few Stamp Duty calculations by State for a $500,000 purchase and an $800,000 purchase. Obviously as the purchase price changes so too will the EXTRAS:

STAMP DUTY COSTS for an owner occupied purchase

$500,000 purchase$800,000 purchase$500,000 purchase$800,000 purchase
New South WalesNew South WalesWestern AustraliaWestern Australia
Fees Fees Fees Fees 
Mortgage:$136.30Mortgage:$136.30Mortgage:$165.80Mortgage:$165.80
Transfer:$136.30Transfer:$136.30Transfer:$255.80Transfer:$315.80
Stamp Duty:$17,990.00 Stamp Duty:$31,490.00 Stamp Duty:$17,765.00 Stamp Duty:$32,315.50 
Total:$18,262.60Total:$31,762.60Total:$18,186.60Total:$32,797.10
$500,000 purchase$800,000 purchase$500,000 purchase$800,000 purchase
TasmaniaTasmaniaAustralian Capital TerritoryAustralian Capital Territory
Fees Fees Fees Fees 
Mortgage:$130.81Mortgage:$130.81Mortgage:$135.00Mortgage:$135.00
Transfer:$200.43Transfer:$200.43Transfer:$262.00Transfer:$262.00
Stamp Duty:$18,247.50 Stamp Duty:$31,185.00 Stamp Duty:$13,460.00 Stamp Duty:$29,210.00 
Total:$18,578.74Total:$31,516.24Total:$13,857.00Total:$29,607.00
$500,000 purchase$800,000 purchase$500,000 purchase$800,000 purchase
VictoriaVictoriaNorthern TerritoryNorthern Territory
Fees Fees Fees Fees 
Mortgage:$112.60Mortgage:$112.60Mortgage:$142.00Mortgage:$142.00
Transfer:$1,263.00Transfer:$1,965.00Transfer:$142.00Transfer:$142.00
Stamp Duty:$21,970.00 Stamp Duty:$43,070.00 Stamp Duty:$23,928.60 Stamp Duty:$39,600.00 
Total:$23,345.60Total:$45,147.60Total:$24,212.60 Total:$39,884.00
$500,000 purchase$800,000 purchase$500,000 purchase$800,000 purchase
South AustraliaSouth AustraliaQueenslandQueensland
Fees Fees FeesFees
Mortgage:$157.00Mortgage:$157.00Mortgage:$175.00Mortgage:$175.00
Transfer:$3,823.00Transfer:$6,193.00Transfer:$1,891.00Transfer:$2,221.00
Stamp Duty:$21,330.00 Stamp Duty:$37,830.00 Stamp Duty:$17,350.00Stamp Duty:$21,850.00
Total:$25,310.00Total:$44,180.00Total:$19,416.00Total:$24,246.00
 NOTE in Vic and QLD you will pay more stamp duty for some investment purchases
QueenslandQueensland
FeesFees
Mortgage:$175.00Mortgage:$175.00
Transfer:$1,231.00Transfer:$2,221.00
Stamp Duty:$15,925.00Stamp Duty:$29,025.00
Total:$17,331.00Total:$31,421.00
$500,000 purchase$800,000 purchase
VictoriaVictoria
FeesFees
Mortgage:$112.60no 
Transfer:$1,263.00 
Stamp Duty:$25,070.00 
Total:$26,445.60 

*Please note that stamp duty rates vary from state to state and concessions are available for first home buyers and purchases made off the plan. These concessions are differ by state and according to the price of the purchase.  

BUILDING AND PEST REPORTS

A building and pest inspection is also highly advised. This will ensure that you have peace of mind when it comes to termites, structural stability, any mould or mildew or any other nasties that can be covered by paint and some handy work. 

Here are some prices by state:

Brisbane Inspection Prices

Combined Building and Pest Inspections Pricing

Apartments of approximately 100sq meters $400.00 (including GST)

A property up to 3 bedrooms & 1 bathrooms $430.00 (including GST)

A property based on 4 bedrooms & 2 bathrooms $440.00 (including GST)

small houseApartments of approximately 100sq meters $400.00 (including GST)
medium houseA property up to 3 bedrooms & 1 bathrooms $430.00 (including GST)
large houseA property based on 4 bedrooms & 2 bathrooms $440.00 (including GST)

New Home Handover Inspection Pricing

An apartment up to 100sqm from $400.00 (including GST)

A single storey property based on 4 bedrooms & 2 bathrooms from  $480.00 (including GST)

A double storey property  based on 4 bedrooms & 2 bathrooms from $550.00 (including GST)

small houseAn apartment up to 100sqm from $400.00 (including GST)
medium houseA single storey property based on 4 bedrooms & 2 bathrooms from  $480.00 (including GST)
large houseA double storey property  based on 4 bedrooms & 2 bathrooms from $550.00 (including GST)

Individual Inspection Pricing

Building Inspection Only – from $330.00 (including GST)

Pest Inspection Only – from $300.00 (including GST)

Asbestos Audit – POA

Handover Report – POA

small houseBuilding Inspection Only – from $330.00 (including GST)
small housePest Inspection Only – from $300.00 (including GST)
small houseAsbestos Audit – POA
small houseHandover Report – POA

CONVEYANCING

Conveyancing is a necessity when it comes to purchasing as it allows for checks on a property that you as an individual either cannot do yourself or would find time consuming and hard to access, if you have to go through council. Letting a qualified conveyancing clerk or solicitor take this stress away for you provides you with peace of mind and a quality check on your property. 

Here are some conveyancing costs by a local Brisbane solicitor:

As you can see from the afore mentioned costs buying a property isn’t as easy as looking at the purchase price and taking out a loan minus your deposit you have to factor in several other large expenses as well. When discussing a home loan with our Mortgage Broker Matthew Kerr he will always factor these costs into your loan and servicing capabilities. If you have the required deposit for a property purchase banks will often allow you to borrow purchase price plus expenses. 

There are other checks such as valuations (if your bank won’t do one for you for free) and depreciation valuers that can also cost you money. Go into any property purchase with an open mind (as the purchase may not go ahead if you receive a bad building and pest report and have a building and pest clause) and an understanding of what extra fees and charges you will incur along the way. 

*DISCLAIMER please note these prices are subject to change. Current pricing was obtained from individual websites and are average prices only. They will differ according to your individual purchase and circumstances. 

http://www.inspectmyhome.com.au/inspection-prices-city-swan-wa.html

http://stampduty.calculatorsaustralia.com.au/

Certus legal





Facebook Comments