Additional home buyer costs

A number of factors will affect the amount you should plan for, including the state you are purchasing within, property type, nature of your loan and deposit amount. It is worth seeking advice from your financial advisor, accountant or potential lender as to the additional home buyer costs you are likely to incur.

Stamp Duty

This is applied on the purchase value of a property and charged by state and territory governments to the buyer of a home. Stamp Duty can be sizeable depending on location. For example, the Stamp Duty on a $500,000 property with a 20 percent deposit, will come to $25,138 in South Australia, $18,311 in New South Wales, $14,658 in Victoria, $13,843 in Western Australia and $1,311 in Queensland.

To estimate your potential charges use Domain’s Stamp Duty calculator, concessions may be available for first home buyers. Check state and territory government websites for more information.

Legal searches

Professional conveyancers are often required to legally transfer ownership, but these professionals will also need to perform property and title searches to check legal credentials, and these will attract fees.

Finance and insurance costs

Lenders may impose fees, such as application, valuation and settlement fees. There are also insurance costs to consider. Lender’s mortgage insurance may apply if you need to borrow more than 80 per cent of the purchase price of the property. Building insurance is usually applied to properties not subject to strata title. Contents insurance is worth considering, to cover fixtures and fittings. Mortgage protection insurance covers your mortgage if illness or injury prevents you from keeping up to date with repayments.

Council rates, strata fees and utilities

These apply to the owner of the property from day one after settlement. If you’ve been renting, you will likely have been protected from these fees.

Utilities

These include water, power and gas. These may need to be connected or re-connected, which can involve additional expense, so check with your real estate agent to see what’s required.