Additional Costs to Consider When Buying a House

As a purchaser there is more than just the price of your new home that you need to consider before entering a Contract of Sale.

Often clients are unaware of the additional costs associated with buying a property, things your broker may not advise or may not be aware of.

Costs associated with buying a property include:-

• Conveyancers’ fees

These may vary depending on what the work involves getting your file ready for settlement. Our standard conveyancing transaction involves liaising with the vendors  legal representative, liaising with your bank (if applicable), liaising with the real estate agent, attending to completing Duties Online, attending to completing settlement via Pexa and reporting to you. Please contact our office for what your fees might be.

The disbursements are on top of the standard conveyancing fee and they consist of the costs of certificates we need to obtain on your behalf so that you can make appropriate disclosure under section 32 of the Sale of Land Act 1962.  These certificates include council and water authority rates certificates, land tax certificate and owner’s corporation certificate.  These certificates are also required to undertake adjustments for settlement.

• Land Titles Lodgement fees

The lodgement fees will vary depending on the purchase price and whether there is to be a registered mortgage.

The fees for both a Mortgage and a Discharge of Mortgage are the same being $112.40 each. An allowance will be made to you on the Statement of Adjustments if a mortgage is to be discharged.

• Stamp Duty

Even though you may be eligible for a concession on the stamp duty payable, we do always encourage clients to allow for the full stamp duty as the amount payable is not determined until the Duties Online has been completed and a Duty Estimate provided by the State Revenue Office.

Example 1.

Property value – $700,000, you are not a First Home Buyer but it will be your Principal Place of Residence.  The stamp duty payable is $37,070.00.

Example 2.

Property value – $700,000, you are a First Home Buyer and it will be your Principal Place of Residence.  The stamp duty payable is $24,713.00

• Stewart Title Insurance

Should you choose to take out the insurance the insurance premium is a one time premium. This premium will vary depending on the value and type of property you are purchasing. Title Insurance is optional but highly recommended as it provides you with protection and cover against any pre-existing illegal structures, incorrect boundaries, planning and title defects and unsatisfied conditions of development applications.

You are covered for the duration of the time that you own the property and are named on the title. If a claim is made, there is no additional costs to you, no excess to pay everything is taken care of by Stewart Title.

• Pexa fees

Pexa is an electronic platform where all settlements and various other property transactions are completed. For a standard Purchase transaction, the Pexa fee is $117.92.

• Adjustments

Council, water rates, land tax and owners corporation fees (if applicable) are all adjusted as paid with the outstanding rates paid at settlement. The adjustments are calculated as at the settlement date and the authority’s annual or quarterly rating period.

The amount is then added to the balance of the purchase price (purchase of the property less deposit) and paid to the Vendor at settlement, or if the adjustments are prepared on an unpaid basis, the amount is subtracted from the balance of the purchase price (purchase of the property less deposit) and paid to the Vendor at settlement.

Generally, the Vendor is responsible for any outstanding amount noted on the rates notice which they pay at settlement.

Depending on the property you are purchasing the adjustment figures will vary as the council, water rates, land tax and owners corporation fees (if applicable) will be different but we advise it is best to allow around $2,000 to ensure there is no shortfall at settlement.