As you are embarking on a new property purchase in Victoria, below is a handy guide to help you understand what fees and items you will need to budget for during your search.
You can also find a list of the service providers and costs you will need to budget for your property purchase. Here’s a quick breakdown for your reference.
| Building and pest Inspections | $590-$790 |
| Conveyancing | $990 – $1,400 |
| Safety and Compliance Checks* | $445.40 (+$250 approved repairs) |
| Title Insurance | Fee needs to be quoted |
| Recommended Buffer for repairs | $5,000 – $15,000 |
| Loan set up fees | Check with mortgage brokers |
| Stamp Duty |
|
* For investment only
Building and Pest Inspections – $590 – $790 inc GST
It is imperative that you conduct a building and pest inspection on any property you pursue to purchase. If you are DIYing your search you will need to budget for 6-8 building and pest inspections. Whilst the majority of our clients using our fully project-managed service only require one building and pest inspection, we recommend allocating a budget for up to two building and pest inspections.
We have a carefully selected team of building inspectors we recommend for our clients. Depending on how large or small the home is you can expect to pay between $590 – $790 inc of gst.
Conveyancing – $990 – $1,400
Our preferred conveyancers and lawyers charge a set fee of between $990 – $1,400 for the conveyancing of your purchase. Our preferred professionals will prioritise our requests and provide unlimited contract reviews for our clients free-of-charge. If you intend to use your own legal team please let Lisa know so she can provide you with our guidelines for what we require from them.
Safety & Compliance Checks – $455.40 (plus $250 approved works = $705.40)
If you are an investor it is likely you will need to conduct safety and compliance checks on the property you purchase. Where possible, if the home has already been tenanted previously we will obtain the most recent copies so we have an indication of what compliance work has previously been attended to at the property. This will give you an idea of what items may or may not come up as compliant in the new reports you obtain.
Safety and compliance checks cost $455.40 which includes checking and replacing the smoke detectors in the home. Approved minor repairs can also be completed up to the value of $250 at the time of assessment if the work required is less than $250. ( This removes any need for future call out fees)
Buffer for Repairs + Set up Costs – $5,000
The recommended budget for setting up your rental property is a minimum of $5,000. A preferred buffer of $15,000 is ideal and will allow you to fix everything at one time and minimise your time and effort on the property thereafter.
You may not need to use all of this budget however it is also possible you will need to allocate the entire amount. For example; if the heating or cooling needs to be replaced to meet compliance the total cost could be anywhere from $4,000 – $8,000 depending on the size of the home and system chosen. There will also be maintenance items found in the building and pest report that may require urgent attention.
If you have budget constraints it is important to discuss this with Lisa so she can adjust her search and negotiation strategies in an effort to minimise your outgoings and any surprises you may not have the budget to cater for.
Loan & Associated Costs
There will be fees associated with your loan that you should be aware of. Your mortgage broker can offer you a breakdown of those costs that will be applicable to your specific purchase price. You should ask your mortgage broker which fees will be added onto the loan and what fees you will require to pay out of your own pocket. Here is an example for your reference – The Hidden Cost of Buying a Home in Victoria
Stamp Duty
Here is a calculator to assist you in understanding the stamp duty you will pay on your purchase. Stamp Duty Calculator
Recent Comments