Additional costs you need to know when purchasing a property.
You need to aware of additional cost when you are planning to buy a property:
- Stamp duty.
- Transfer fee.
- Legal fee.
- Land tax.
- Council, water, and strata fee.
- Build inspection cost.
- Building inspection and pets report.
- Building and content insurance.
- Financial fee and valuation fee.
1. Stamp Duty
For properties in NS, stamp duty information can be found at:
For properties in QLD, stamp duty information can be found at:
Or simply go to:
- http://www.stampduty.com.au/ and use the calculator to find out the cost.
2. Transfer Fee
The land transfer chart applies to all transfers of land lodged for registration with Land and Property Management.
3. Legal fee
There is a cost for a solicitor who acts on your behalf to exchange the contract and finalise the settlement of the property purchase. The cost depends on the complexity and size of the property transaction.
You can find more information by searching: “Understanding conveyance and legal costs when buying property in Australia”
4. Land Tax
You may need to pay land tax if you own or partly own:
- Vacant land, including vacant rural land.
- Land where a house, residential unit, or flat has been built.
- A holiday house.
- Investment property.
- Company title unit.
- Residential, commercial, or industrial unit including car spaces.
- Commercial properties, including factories, shops, warehouses, or land leased from the state or local government.
Information for NSW can be found on:
5. Council, Water rate, and Strata fees
The buyer and seller share these costs in proportion to the length of time each party owns the property during the rating period.
6. Strata inspection
If you are buying a unit, town house, or villa, you should get an update strata inspection report which allows you to find out information regarding this property.
This information will include:
- Building insurance status.
- Sinking fund balance. Either a surplus or running low which indicate a special levy that may incur after you move in.
- Any maintenance of this unit has been done in the past.
- Any records that indicate a major repair which needed to be done. This may result in a strata levy increase after you move in.
7. Building and Pets inspection
We highly recommended that you have the building inspection done before you exchange your contact. It is not mandatory when the property is purchased.
You need to know if there is any damage inside the property before you exchange the contract, if there is issues, you can bring it up with the solicitor and the issues need to be resolved before the contact is exchanged.
8. Building and content insurance
We highly recommend our clients to take up these insurance policies.
If you purchase a house, you need to purchase both building insurance and content insurance.
Even you have purchased a unit not a house, you will still need content insurance in place because you are liable to any person’s injury in the property after you exchange the contract. You need to ensure that there is public liability insurance in place. If any content is damaged, you can claim for your content insurance. The Strata will only cover building insurance.
9. Financial fee and Valuation fee
This is for loan application or establishment fee. A valuation fee is also needed for an accredited valuer to do a valuation report on your property.
I suggest that you search: “Hidden cost of buying a home under Realestate.com.au“. You will find that to buy a house isn’t just about paying what is listed on the property’s price tag. There are some extra costs that all buyers should be aware of.
Please contact Lisa for details.
+61 450868188 for oversea clients
0450868188 for Australian clients