We are all well aware of the initial costs of buying a home, well we think we are. Often its where the money is spent that comes as a shock to first – home buyers.
It’s not over once the deposit has been saved and the winning offer made. Below are the five areas identified by experts where hidden costs are likely to exist.
- Pre-purchase research
- Conveyancing fees
- Government and bank fees
- Moving in, and moving tenants in
- Landscaping and repairs
1. Pre-purchase research
Failure to research can prove costly. Mortgage Choice CEO John Flavell said it was vital to conduct proper pest and building inspections.
“It is a small amount to pay for peace of mind and it can help you to avoid buying a property with structural faults or insect infestations”
2. Conveyancing fees
Some first home buyers are surprised to discover they need to engage a conveyancer, or are alarmed by the price.
It is common to see first-home buyers making mistakes that could cost far more in the long run that the $1500 – $2000 conveyancing fee.
3. Government and bank fees
When it comes to home loans there is the loan application fee, ongoing bank fees, lenders property valuation and depending on your situation possibly lenders mortgage insurance.
4. Moving in, and moving tenants in
When a vendor moves out, there’s not a requirement for how clean the apartment has to be.
If the property is left in a passable condition, but not clean enough to meet the standards of a rental property, it might require a professional cleaner and a $500 – plus outlay.
5. Landscaping and repairs
Putting aside a slush fund is definitely advisable to cover unexpected expenses such as a lawn mower, blinds, security screens, servicing of appliances eg air conditioning and general house maintenance items.
To read the article by Nicole Frost click the link below