The biggest initial cost is the deposit. This could range from 5% and above of the value of the property.
Stamp duty is a tax on written documents and on certain transactions including:
- Motor vehicle registrations and transfers
- Insurance policies
- Transfers of property such as businesses, real estate and certain shares
Stamp duty is imposed by state and territory governments and the rate of stamp duty varies according to the type and value of the transaction involved.
Registration fees are payable on a property purchase and on a mortgage.
Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who should perform this task on your behalf.
There is also a government charge to register your mortgage document. We will pay the applicable state authority on your behalf. You will be charged at cost.
Legal expenses for the average home purchase include:
- Solicitors fees (between $500-$2000)
- Survey and building certificate ($450)
- Building inspection and pest report ($400-$500)
Searches and inspections
Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include the following:
A Certificate of Title obtained from the Titles Office by your solicitor/conveyancer provides details of who owns the property and who else has an interest in it. This is a good way to research if there are any mortgages, caveats, restrictive covenants etc on the property which would affect the transfer of title.
Building inspection and pest report
The report completed by your building inspector will detail any building flaws, e.g. structural issues with the building or roof, damp etc. The pest report should detail any evidence of pest infestation. It will enable you to assess the cost of any required treatment.