Understanding the costs of buying property

There is little doubt shopping around for a great home loan and saving a substantial deposit are central to buying a home, but these are not the only financial factors you need to consider.

Determining if you are financially ready to buy requires an understanding of your pre-purchase, transaction and post-transaction costs. This may include property buyer services, mortgage establishment fees, building inspection charges and the ongoing costs of owning a home.

Pre-transaction costs when buying property

The amount of time you have to search for the right property and the type of sale transaction – whether auction, blind auction or private treaty – will affect your pre-purchase costs. These may include:

Property purchase transaction costs

Once the hammer has fallen at auction, or you have signed the contract on a private treaty sale and the cooling-off period has begun, you are on your way to settlement and home ownership. The following expenses can be expected at this point in the sale process:

Ongoing property ownership costs

You’ve found and bought your property – what costs can you expect next?

Source: https://www.domain.com.au

Posted by Steve Aberline