The housing industry is most definitely a labyrinth, especially because living in different states in Australia or different cities in the world encompasses different costs and fees. Besides, due to economic fluctuations experienced in the past couple of years, most of us are naturally anxious and curious as to the risks attached to purchasing a home. For your benefit, we’ve going to a compile an updated list of different countries and the costs attached to housing. Be prepared: it’s a rather daunting.
With real-estate prices gradually rising after the recession from a couple a years ago, it is still considered prime-time to enter the property market. However, it is important to consider the cost of down payments with lenders requiring more money upfront as they react to economic volatility by tightening standards. If you’re one of those less than ideal borrowers, a new array of loan fees can be an issue. There are also home inspection and closing costs to take into account. Home inspection fees can easily be $500 following a verbal offer for the property while closing costs include legal service fees and documents such as credit reports, appraisals and list continues…
In Australia, purchasing a home involves in the first instance, payment for a loan application which can easily cost $700 and is followed by a loan establishment fee which can cost you up to $1000 (and even higher in some cases!). Other lender fees include mortgage insurance and valuation on your property—that’s another couple of hundred dollars. Stamp duty which is a property tax is then charged, unless you are a first home buyer and are exempt. The cost of which can exceed $20 000. Generally speaking you will also be liable to pay conveyance fees of around $1000. If you have cleared all of these costs, there are still a couple more so bear with us: connection to utilities such electricity, gas and phone, television services council and water rates. Depending on the type of property you purchase, you must also do further research in the area of Strata title and strata title management.
Similar to the other countries listed above, there are convincing fees involved, arrangements fees for the setting up of the mortgage though some lenders may waive this fee. Basic valuation is compulsory in the United Kingdom and the cost depends is proportional to the value of the property. It is also strongly advised that buyers find an independent surveyor to check for defects, also called a Homebuyer’s report which costs between £250 and £500. Meanwhile, stamp duty is charged for properties over £125 000. Properties below this do not require stamp duty not properties in an area designated by the government as being ‘disadvantaged’. Additionally, there is a land registry fee that is a payment made to a government department for the transferring of register and again, is calculated according to property price.
Clearly it isn’t simply the cost of the property that you incur when you make that decision to purchase property. By no means should you be discouraged by the information above, it is solely intended to make sure you are smart and well-informed for a major event in your life – creating your own home and building your future!
Hayley Jane loves her welcoming home in Mt Aitken and only feels this way because she had researched the costs and complexities of owning a home. In doing so, she confirmed that she was making the right choice.
Image courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net