Hidden Costs of Buying Property

By Janet Spencer

Hidden Costs of Buying Property

Do you know the hidden costs of buying property?   Before you start your property buying journey, are you sure you know the total cost of buying ?  Have you thought about:

Property Purchase Price

 Stamp Duty

Conveyancing/Solicitors Costs

Pre-purchase Building and Pest Inspection Costs

Loan Application Fee

Mortgage Registration Fee

Building  and Contents Insurance

Mortgage Insurance

Mortgage Protection or Income Protection Insurance

Moving Costs

Buyers Agent/ Buyers Advocate Cost

Home Improvement Costs

Before you start shopping for your next property,  consider all the above costs and factor them in to the plan.  If you haven’t done this, you are not ready and may not have sufficient money to be comfortable with the commitment you are about to make. There is nothing worse than having the budget so tight after you have bought that you can’t afford to go out to dinner once a month.

If an interest rate rise of up to 1% would put you in the poor house, under mortgage stress or even worse cause you to default on repayments, then you should not be buying or you should reduce the amount you are prepared to pay for a property.  Over committing when buying a home can be a disaster.

You need to think about if one partner in a relationship lost their job or had to have time off to have a family.  When buying property, we suggest that clients consider what could happen over the next ten years and ensure that they plan for that and budget accordingly. It is amazing that many property buyers do no consider the future when making their decisions.  They are so “in the moment” with excitement at buying, that they overlook some basic common sense things  that could be problematic down the track.

We consider that “getting it wrong” as a property buyer is potentially very costly to your financial future.  Whether you are a first home buyer, an investor, an up-sizer, a down-sizer or a developer getting some professional advice from a fully accredited and experienced Buyers Agent would be money well spent and prevent costly mistakes.

If you are planning your next purchase, contact us to book a complimentary consultation at Buyer Solutions.

For up to date information on what’s happening in real estate in Melbourne, contact Janet at  jspencer@buyersolutions.com.au or 0418 101 146.

By Janet Spencer

Buying property, First home buyers, Housing Affordability, Investment, Investment property, Real Estate News & Opinion

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