Investing in real estate possibly is the biggest investment a lot of us make. Once you have gone through the tough work of getting your deposit together, you will then have to look after other upfront costs.
Possibly the biggest upfront cost for property buyers is the stamp duty. Stamp duty varies from state to state and so does the rules and exemptions. It is best to look at your relevant state’s website. Other Government costs are transfer fees and mortgage registration fees.
Mortgage application fee is charged by lenders to process and set up your mortgage. Some lenders may have a deal or a package to reduce this fee so it is worth checking and shopping around. Other lender fee to consider is valuation fee charged to cover the cost associated with getting your property valued. Again, some lenders may have a deal or a package to reduce this fee.
If your saved up deposit is less than 20% of the property value, you will have to pay lenders mortgage insurance.
You will need to keep some funds to pay for the conveyancers who reviews the contract and prepare for settlement. You will also need to keep some funds aside for getting the building and pest inspection. If you are going to have a mortgage on the loan, you will also be required to take out home and contents insurance. Then comes the moving charges and utilities connection charges.
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