COSTS IN PURCHASING A HOME
Government Fees and Taxes
Stamp Duty: this is a state government tax, that is a once-off cost of purchasing a property and is paid to the State Revenue Office at settlement (First Home Buyers may be exempt from Stamp Duty or entitled to a rebate/concession). If you are purchasing as an investment property, there is usually no exemptions or concessions.
Registration and Transfer Fees: these are fees associated with registration of a mortgage and transfer fees. Each State or Territory has a different amount that you have to pay for at settlement
Goods and Services Tax (GST): for any home valuations of new properties being purchased, or on existing properties you currently own; or on any Lender's Mortgage Insurance that is payable
Conveyancing or Legal Costs
Conveyancing costs: for any property being purchased, your Solicitor or Conveyancer has to assist with a conveyance. They should be able to provide you with an itemised quote detailing what the costs are associated with the transfer of the title, property and titles search fees, and contract review fees. They should also provide you with a statement of adjustment to reflect an adjustment of charges (council rates, water/sewerage connection, etc.) between the Vendor and you as a Purchaser.
As a general rule of thumb, you should set aside at least $3,000 for these charges.
Lenders' Mortgage Insurance
Depending on the valuation of the property, and the amount you are borrowing from the finance institution, generally, any borrowings above 80% of the value of the property, you are required to pay for the bank's Lenders' Mortgage Insurance - this amount can be lent to you on-top of the loan amount you are borrowing for the purchase.