Before making an offer, be sure you can pay the associated costs.
FIRST-HOME buyers are making the most of low interest rates and federal and state government home-buyer assistance. When working out your budgets, it is important to be aware of the many associated costs.
Borrowing costs
Before beginning the search for a new home, ascertain how much you can afford to borrow, then obtain loan pre-approval from the bank. What you borrow has to cover more than just the cost of the property; there is the loan establishment fee, mortgage insurance and stamp duty.
Fees will vary from lender to lender, so be prepared to shop around for the best loan to suit your needs.
Stamp duty
In Victoria, stamp duty on a property can be as high as 6 per cent, depending on the value of the property.
Legal costs
Assistance and advice from a solicitor will help you navigate the contract process. Fees are negotiable, so shop around and compare rates.
Building and pest inspection reports
Such a report may save you thousands of dollars in the future and will show whether you need to carry out repairs. To save time and money, investigate your choice of inspector and their availability well before you begin property negotiations.
