I. Hidden Cost When Buying Property
There are numerous expenses associated in the buying process of a home. There are expenses or cost that you already expect and there some that you probably have not considered. To save you from any cost related surprises, I’ve created a list of things you may want to consider when setting aside your budget for home buying.
1. Stamp Duty
Stamp Duty is a tax imposed to most home buyers, so you need to include it in your budget. You are required to pay this if you are dealing with Best Tucson AZ Realtor properties including commercial, residential and retail.
Although, stamp duty on mortgages does not exist anymore, you need to pay the government when you register your mortgage. The amount you will pay depends on the state and territory you reside. If it is your first time to buy or build a home, you may qualify for some stamp duty concessions.
2. Pest Inspections
Getting pest inspection services before purchasing a property can help you avoid paying huge repair expenses in the future. Pest inspection can cost between $200 and 400$, depending on the size of the property. Mention this to your legal rep if you want them to organize the inspection on your behalf.
3. Building Inspection
A building inspection is usually recommended by your solicitor or conveyancer. The result of the inspection will give you a complete idea about the state of the property you plan to purchase. Qualified building inspectors are skilled in spotting problems or issues that are usually overlooked such as structural defects, electrical or plumbing issues, asbestos, ventilation or damp problems and many other hidden problems.
4. Legal Cost
You may need to employ a solicitor/conveyance to manage all paperwork essential when buying a property. A conveyancer can help legally transfer ownership of the property you are selling or buying as well as help you determine if the seller is legally entitled to sell the property. If you decided to move to a strata property then your legal rep can arrange the inspection and data gathering. For these services, expect to pay between $800 and $1200.
Lenders Mortgage Insurance – This is an insurance policy that covers you, as a lender, for the amount of the loan provided to you. You will need to pay for this if you borrowed more than 80% of the property’s purchase price. As a borrower, you pay this as a once off premium to cover risks of you defaulting on your loan. The cost will depend on the amount you borrowed and the cost of the property.
Mortgage Protection Insurance – You can choose to acquire this insurance policy if you want to be covered for mortgage repayments if ever you get ill or injured.
Content Insurance – You can choose to acquire this if you want to cover the included fixtures and fittings.
6. Moving costs
This is one of the most neglected costs when buying a home. The cost of hiring a truck is somewhere between $100 and $300. You can save money by asking a couple of friends or relatives to help out in the move rather than hiring and paying for movers. Give yourself enough time researching, checking and hiring a truck. Identify your budget and additional costs.
If manpower is a problem for you, you can hire a removalist. An independent removalist is cheaper compared to hiring a major removalist company as this one-man-operator may not charge for insurance cost. In the end, the cost will depend on the number of belongings you need to move.
7. Connection Of Utilities
Include in your budget the cost connecting your phone, electricity, gas and other essential utilities. Arrange early so you can determine how much you need to spend and when each utility needs to be paid.
If ever you do not have accounts with the utility companies, you can ask if they offer a bond to be paid. Each can cost a few hundred dollars and even without this bond, a connection fee applies to each utility amounting to $60 to $100.
Buying a home is among the biggest decisions you will ever encounter. It can be scary but the fear should not prevent you from acquiring your ideal home.