So what are the Additional Costs?
When you buy property there are various other expenses you are likely to incur above the purchase price that you may not have considered in your budgeting. These additional costs include banks fees, building and pest inspection costs, legal fees, stamp duty and registration fees. We look at each of these below.
If you are obtaining finance from your bank you may be required to pay application and establishment fees as well as lender’s mortgage insurance.
Building and Pest Inspection
If you are buying an established property, it is recommended that you obtain a Building and Pest inspection to ensure you have full knowledge of any underlying issues with the property. If there are major issues identified in the report, you may be able to negotiate with the current owner to have these fixed. Alternatively, you may be able to agree on a deduction to the amount you will pay for the property at settlement so you can attend to rectifying the issues yourself after settlement.
If you engage a solicitor firm to act on your behalf, you will incur professional fees as well as property search fees.
Stamp duty is applicable on all purchases in Queensland and is payable on or before settlement. The amount you are required to pay (if any) will depend on:
the purchase price;
if you have previously owned property; or
if you are purchasing the property to live in or as an investment or to live in.
Registration fees are payable to the Department of Natural Resources and Mines to have the property transferred into your name. The fees vary depending on the purchase price. If a bank is providing finance, they will also register a mortgage over the property at an additional fee.