Hello, i have just finished reading steve’s book and will be investing in property this year. Would any one be so kind as to tell me the costs involved in purchasing a property, such as stamp duty, building inspections etc. I need more info on what costs to expect and plan for. How much renovation can be done before you need council approval or if any at all? please help.
Kirsten1,
Try this
..http://www.national.com.au/Online_Services/0,,21473,00.html#3 & then select Home Buying & Selling cost calculatorThe local council website will usually confirm in what circumstances you need a building permit
Hi Kirsten, and welcome – I am currently going through the purchasing process on my first place which I will initially live in to get the FHOG. These are some of the costs involved that I know of: (They will vary depending on a number of things – mainly purchase price)
1) Stamp duty – NIL (only if it is your first home purchase in NSW.) I understand there are similar concessions and discounts in other states.
2) Building inspections about $150, (I think) depending on the builder and the property.
3) Solicitors fees – between $1500 and $2000 for an average contract, but can be higher depending on purchase price and complexities in the sale contracts.
4) Lenders Mortgage Insurance (LMI) – I am not completely sure how it is calculated. Obviously based on the amount you have to borrow, but I would suggest speaking to your bank manager or a mortgage broker.
5) There is often a loan application fee – can be huge or it can be nothing. This pays for things such as the bank valuation on the property you intend to buy etc. I think this is around $600 for a loan I am looking at, however, the interest rate is lower than most.These are just a few – I would consult a mortgage broker if I were you – they usually charge you nothing for a consultation and they have access to heaps of different lenders.
Age doesn’t negate effort – you can never be too young or too old.
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