Buying a home is both an exciting and stressful event, particularly if it’s your first home. There are many costs that come with
purchasing a home that you need to be aware of. Here is a list of things that you need to budget for.
Valuations: An independent valuation will give you certainty about the price you are paying for a property. If you are
taking out a mortgage your bank may require you to get a valuation.
Building Report: I would highly recommend a building report as it will point out defects in the property and
any hidden issues there may be. This not only ensures you are aware of any hidden costs to fix the issues but can also give you more
Meth Test: Sadly Meth or P is becoming an increasingly worrying issue and can create health issues for those living
in an affected house. It is well worth the cost of a test to be certain your new home is free from this drug.
Legal Fees: Having a lawyer is essential for your home purchase. I would highly recommend asking your lawyer to go through
your Sale & Purchase Agreement before you finalise it so they can ensure you have the best clauses to protect your needs. Most
people give their lawyer the agreement after it has been signed which is often too late to rectify issues you were not clear on to begin
LIM Report: A LIM is a record of information held by your local council on a property. It includes standard information
such as rates details and building consents. It may contain details about risks such as erosion, contamination, or flooding. It may also
alert you to illegal works on the house, or the fact that it might leak.
Lenders Mortgage Insurance (LMI): If you are borrowing more than 80% you will often have to pay LMI premiums, which are
usually added to the loan. This is insurance that covers the risk the lender takes when they lend to someone with less than a 20% deposit.
Rates: Annual council and water rates are an ongoing cost of home ownership and may cost you a few hundred dollars a month
depending on which area you have purchased in and how much water you use.
Connection Fees: There will be connection fees for connecting your phone, internet, sky and electricity.
Moving Expenses: You may need to hire a trailer to help with your move, or a professional moving company.
Repairs and Maintenance: Houses need to be looked after and require ongoing maintenance.
Renovations: If you are planning on doing renovations to your new home you will need to consider the cost of this and how
they will be funded.
Insurance: It is compulsory to have house insurance if you have a mortgage. You should also consider contents insurance,
and mortgage protection insurance, which covers your mortgage payments if you are made redundant or cannot work due to illness or accident.
Appliances: If you have been previously renting you may not have all the appliances you need like a washing machine, dryer
It's not just about finding a deal, to truly grow as an investor you need to plan towards your end portfolio and work with people who can help you move towards that vision. iFindProperty has a service that achieves that for clients, and we are excited to share it with you
As an accountant is not a place for my personal political opinions, but professionally speaking I’m pleased with this result, and cautiously
optimistic we might have a friendlier tax environment for the property sector for at least a few years. But what does this mean for property