C&G’s Guide to Buying and Finances

No one forgets their first home purchase. It’s an incredibly important transaction, and comes with its fair share of upfront fees and careful budgeting. This C&G blog outlines the most common costs to consider when buying a home.

Deposit

This is your initial contribution towards securing your home. When applying for a home loan, banks may require you to save 20% of the property’s price to avoid paying Lenders Mortgage Insurance. This reassures the bank or lender that you are financially disciplined and will be able to pay your mortgage in the long run. The deposit will ultimately be paid to the property’s vendor as part of the Contract of Sale.

Stamp Duty

In Victoria, the buyer will be required to pay stamp duty 30 days after settlement. This is a government tax on your transaction, and will be calculated in proportion to your property’s market value and location. There may be exemptions applied if you are a first home buyer and an eligible recipient of a government grant.

Conveyancing

A conveyancer assists in transferring property ownership between two parties. They can help you review contracts and draft settlement documents. Professional advice is extremely valuable, but can cost between $700 to $2500, depending on the complexity of your sale.

Buildings Insurance

If your home becomes damaged from floods, fire, storms or malicious damage, buildings insurance can assist. Too often, homeowners mistakenly postpone setting this up until after the buying process is completed. It should form part of your Contract of Sale, as this is when you become legally responsible for the property.

Moving Costs

Once you’ve wrapped up the legal side of your transaction, you can start moving in and enjoy your new home! The costs associated with moving will depend on how far you’re travelling and how many items need to be moved. You’ll also need to be aware of connecting utilities like gas, water, electricity and telecommunications - and the fees from those service providers.

Chisholm and Gamon have years of experience servicing both buyers and sellers, so we know a thing or two about the process! Whether you’d like to learn more about preparing your finances or making an offer on one of our listings, we’d love to help. We can also connect you with reputable finance brokers to find the right home loan that suits your needs. Talk to us today!