Have you prepared for unexpected costs when you buy a property?
Congratulations - you are about to buy your first, or another property!
On top of the stress related to finding the right mortgage to suit you (hint: Skyward Financial does this part for you) after the possibly long process of finding the property you are about to settle.
But have you prepared for unexpected costs?
When purchasing a property there can be many costs involved that people don't always consider, which means they can run into a tight cash situation.
These unexpected and unwanted costs can include...
- "Lenders Mortgage Insurance" or commonly known as "LMI"
This is a fee the lender requires if you are borrowing generally more than 80% of the property value to purchase it. Read our other article on this.
- Stamp Duty
The Government fee that you have to pay.. in cash... In NSW for example on a purchase for primary residency of $900,000 is ~$36,267
Be mindful to include this cost when budgeting for the property!
First Home Buyers and others might have concessions or exemptions on this tax, Skyward Financial can help figure this out for you.
- Property Inspections
These are a must!
You can find potential issues such as concrete cancer or plumbing issues before you exchange contracts on the property
- On-Going Costs
Strata Fees if you property is in an apartment complex, council fees, water fees... There are a lot of fees that keep coming, make sure to consider them when buying
To get a clear picture of the costs involved in a property purchase, and to save you time and money speak to Skyward Financial for your next property purchase.