Costs Involved in Buying a Property in Australia

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Costs Involved in Buying a Property in Australia
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Oh! what fun to buy a property/home in Australia.
Isnt it? But ever wondered about the overall
cost of buying a home in Hampton Park, Lynbrook,
or nearby suburbs. Well, if you do not know, let
me tell you about all the costs that are involved
while you buy a home (there are some hidden
costs too). As a general rule, besides10
deposit, you are required to pay off the planned
project. At the same time, you should also
expect to pay roughly 5 of the purchase price
for other expenses associated with buying a
property. (Figures are not for any specific
suburb or any city in Australia) When buying a
home in Australia, it is always suggested to hire
a local real estate agent. For instance, if you
are looking to buy a home in Hampton Park, it is
advised to hire real estate agent of Hampton Park
itself. Same goes for other suburbs like
Lynbrook, Lyndhurst, and Cranbourne. The right
real estate agent will keep the home buying
process smooth and transparent to you. There is a
lot that goes in buying a home. Apart from the
final amount, there are various hidden costs that
pop up during the home buying process. So, let
us see what are the type of costs involved. The
below described costs are not subject to any one
suburb, but are generalized costs that are
involved while buying a home in Australia.
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Government Fee
Mortgage Registration Fee If you are buying a
property in Australia on a borrowed money, it
means you will have to take out the mortgage.
The government would require you to formally get
it registered so that it can be viewed by a
simple title search. This process prevents you
from selling your home without paying back the
loan amount.
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Transfer Registration Fee
This fee covers the cost of transferring the
title of your property. This fee is paid at the
time when you have to transfer the name from the
previous owner into your own. This fee is based
on the consideration or value that is assessed
by the Office of State Revenue.
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Landgate Title Searches
Your conveyancer will be required to get
searches of the property through Landgate. Each
search costs 29.37 including GST. Sometimes,
you may require just one search and other times
you may need several. So, it is very important
to be aware of any encumbrances that may burden
your land.
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Stamp Duty
This is the tax you pay on the property/ home you
are purchasing. The stamp duty tax changes based
on the state you are purchasing the property in.
Also, it varies depending on the property type
(first purchase, or investment property). You
can calculate stamp duty through online tools
but if you have a local real estate agent with
you, then you do not have to worry about
anything.
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Enquiry Fees
This is the fee you pay when your conveyancer (a
specialist lawyer who specializes in the legal
aspects of selling and buying the property)
advises the water, shire, land tax. If the
applicable strata company of the change of
ownership at the property, the above said
departments charge a fee which is called enquiry
fees. In return for the fee paid, you will not
only update the ownership with the government
departments but also your conveyancer will
receive rate information and general information
they have about the property saved on their
database.
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Rates and Taxes
The taxes and the rates will depend on the time
of year you settle. The time will decide how
much you need to pay for your portion of water,
shire, and if applicable, strata levies. Once
the information is available, an adjustment of
rates and taxes is done at the time of
settlement.
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Identity Verification Fee
This is done primarily to reduce the risk of
fraud. By verification you get to know if the
real estate agent has an authority to buy or
sell the nominated property or not. It is
required by all buyers in Western Australia to
have their ID verified prior to settlement. The
identity verification service fee is 49.00 and
payable to Australia Post.
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Property Costs
Conveyancing Fee/Legal Advice If you hire a
conveyancer or a property lawyer, you will be
well-informed on your buying decision. Also, it
is guaranteed that your purchasing process will
be stress-free and successful. Title
Insurance When you buy a property, there are a
lot of inherent risks that may cause you loss or
even affect your ownership. Financing Fees Do not
get confused, there are many other once-off
financing fees that you will have to
pay. Property Valuation This is essential to get
a good price over your property when you are
selling. A property valuation from a professional
will give you a good idea of the market price.
Also, they will tell you at which amount you
should settle for on the home that you are
interested in. Moving Costs This cost is
something that many people often overlook while
budgeting for their actual move into their new
home. Ongoing Property Costs Once you buy a
property and move in, make sure to always be wary
of the ongoing fees that you may have to pay.
These can include, home and contents insurance,
utility connection for water, internet, gas,
strata/body corporate fees (only if applicable),
cleaning/garden maintenance, water and shire
rates.For any queries related to real estate,
buying, selling, or even renting a property in
Hampton Park, Cranbourne, Lynbrook, or nearby
suburbs, contact the team of best real estate
agents.
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Get In Touch

• PO Box 137 Lynbrook Victoria
• 0425843786
• carlton_at_carltonvaz.com.au
• Content Resource
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