Hey all,
When coming to the end of a deal and facing the closing costs, what am i looking at paying FOR? is there a set of things.
Help appreciated
Bj
lil man,
ok..this is from memory.Sale price subtract loan amount and subtract deposits already paid.
Conveyancing
Water and Rates Search
Titles Office Search
Stamp duty on Land
Stamp duty on Mortgage
Titles Office Fee on Land
Titles Office Fee on MortgageCouncil Rates for remainder of year
Water Rates for remainder of yearLenders Mortgage Insurance (sometimes rolled into loan amount)
Valuation fee
Loan application fee
Other lender fees
Lenders Lawyers Fees (this is a sneaky one! lender states no fees and then you gotta pay their lawyers, ING do this)Be careful if settlement is delayed because of your bank, your broker, your conveyancer, as the seller might try to screw penalty rent and interest out of you.
But simply, allow about 5% of sales price for the extra costs.
lifexperience
Hi lil_man,
very much agree with LifeX post above… pretty much everything covered.
a good rule of thumb is, to allow an extra 5% of the sales price for the closing cost needed,
… though if this is an investment property, the more higher you gear (borrow money), the higher return, (profit created and made) from the banks money, you will end up making a substainal, but greater return, than on just your own orginal capital, put into this property deal.
Cheers,
sisThank u very much guys ill write them costs down and try to make sense of it all[confused2] but i think ive got it covered, thanks again!
Bj
Basic Categories Are
Money you give to Real Estate Agent (10% Deposit)
Money you give to Lender/Bank (initial loan fees, LMI, Lender Lawyer fees etc)
Money you give to Conveyancer (stamp duties, title office fees, remainder of sale price, conveyancer fees etc)
Oh….. and two more I forgot
Money for Insurance (building must be insured to get loan money for house, usually just 1 months payment is needed = $35)
Pre Purchase Inspection (get a building inspector to check property condition = $350..optional)
[lmao]
lifexperience
I just got quoted $550 for a Building Inspection. Is that a bit overpriced ?
lil_man,
don’t forget the new stamp duty exit duty (2.25-2.5% or thereabouts) paid on profit over 12% when you sell your IP (if it is a nsw IP).
kay henry
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