I’m totally new to the investment game. I’ve just about paid off my credit card and am currently saving for a deposit on a house later this year.
One thing I noticed in my research that was a bit of a shock was the significant amount that purchasing costs come to (eg Stamp duty, Registration Fees, Mortgage Insurance, etc).
When taking out a loan for a house do people take these these fees into account and just get a bigger loan?
Also is there any way to avoid some of these fees?
Cheers [
]Hi 7,
A quick way to summaries it is, whatever the purchasing price is, add another 5% of the purchasing value.
And that will be a good, but very close estimate of what the closing cost of that property will be.
eg. Property for sale $100k
5% = 5kDepending on your situation, but usually 20% cash deposit + 5% for closing cost.
cheers,
s.i.sThanks SIS
Also, depending on the package of the loan you take out, you can avoid some of the other hidden smaller fees with the banks.
cheers,
s.i.s7,
I just borrow 100% of the costs- purchase price plus all that you have mentioned (all up, about 105%). I use equity from other IP’s I have. But even if you are buying your first place, just bite down hard and pay the extra costs. They either become tax deductible throughout the peroid of the loan, or claimable against CGT when you sell.
I pay those costs and try not to think about them afterwards- hehe- saves me stress.
kay henry
quote:
Originally posted by 7One thing I noticed in my research that was a bit of a shock was the significant amount that purchasing costs come to (eg Stamp duty, Registration Fees, Mortgage Insurance, etc).
When taking out a loan for a house do people take these these fees into account and just get a bigger loan?
Also is there any way to avoid some of these fees?
Cheers [
]Hi 7
One way to avoid mortgage insurance is to have a 20% deposit, Good luck.
Regards
Steven[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
It is all about playing with the numbers, moving cash form one place to the other. Redrawing on loans is also a good trick to get around stamp duty on the loan. sell one and buy another with the proceeds. If you have the equity
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