Blog

March 13, 2018

3 Hidden Costs When Buying a Property

Investing in property is smart, but some go into this journey with only some of the facts on the costs involved, and for some it’s those extra costs that stop them short of fulfilling their dream of owning property. So when buying a property, your savings or home deposit don’t always get you across the line.  With the right information and planning though, you could be signing that contract and booking a removal company!

Here are some the costs you need to ensure you are prepared for:

Legal Fees

Conveyancing and legal based fees are required to ensure the deal is done legally. If you are buying a property with a more complex set of rules incorporating family trusts, companies etc then this cost may really vary.  It may also pay to consult with your accountant to ensure that things are set up right the first time.  It always costs much more to fix these things afterwards and causes more stress in the long run. You want to move in and be settled, not be dealing with something that wasn’t done correctly.

Stamp Duty

Stamp Duty is one of those fees you will pay when you buy and sell a property.  It’s a tax that the Australian Revenue offices levy on consumers when they purchase property.  Different states have different rules, and there are some factors that go into determining what you will pay including the value and type of property is taken into consideration aswell.  It’s just one of those expenses that every purchaser needs to pay. 

Inspection

A Building inspection is a must, and you regularly hear regrets from those that didn’t book this in.  It really is better to be safe than sorry.  A building inspector can inspect for pests such as termites, other building nasties such as asbestos, and many other things.  Having this information can give you extra negotiating power when it comes to price if something is wrong or you can possibly request the current owners resolve before they hand the property over (depending on what the issue is).  Getting a building inspection done is another cost, but it’s one that can possibly save you money in the long run. 

Where there is cost, there is benefit.  After all, you are achieving your dream of owning real estate, being best prepared with our inspections, and ensuring these things are legally signed off properly.

Why not get in touch to discuss your real estate needs!