The costs associated with buying a home

The question I get asked most from clients other than, if an approval is possible, would be the costs associated for buying a property.  

Below a list of the costs involved:

Registered Valuation

Required Where your deposit is less than 20%

Also required where it is a new build property (buy a section and build) or a Turnkey property

Most banks require that you order through an approved valuation portal.

The valuers on the portal totally independent from you and the valuer gets assigned randomly.

Cost $750-$1000, for an existing home, and $1000- $1200m for a new build property.

Turnkey properties also require a Completion Certificate, an extra $300

You will pay more if you require an urgent valuation, usually another $250 over an above the cost of the valuation.

Building Inspector

A building inspection can be up to $1000, depending on the area that you are buying in.

You will need to pay extra for a specialist weathertightness report.

Some banks require a specialist weathertightness report, but this would be dependent on the property that you intend to buy.

It pays to first get an understanding from the bank if they are going to need a weathertightness report, to give you the opportunity to decide to make an offer knowing that you must pay for a weathertightness report.

Lim report

Dependent on the council that you are buying in.

Budget for around $350.

Solicitor

Cost around $ 1500- $2000 for the process from beginning to end.

Can be more if there are lots of covenants and encumbrances on the title that the solicitor needs to give an opinion on.

The cost can also be higher if there is a lot of negotiating to be done with vendor’s solicitor on your behalf.

Application fees on loans

Application fee between $200 and $400 however most banks waive this cost.