3 Hidden Costs When Buying Your Home
3 Hidden Costs When Buying Your Home
Buying a home is an exciting milestone, but it’s essential to be prepared for the hidden costs that go beyond the purchase price. These unexpected expenses can quickly add up and may catch first-time homebuyers off guard. To help you navigate the process, here are three hidden costs you should consider when buying your home.
1. Stamp Duty
Stamp duty is one of the most significant additional costs when buying a home. This is a state government tax that is calculated as a percentage of the property’s purchase price or market value, whichever is higher. The amount varies depending on where you live, the price of the property, and whether you qualify for any exemptions or discounts (e.g., first home buyer concessions). Stamp duty can range from a few thousand dollars to tens of thousands, so it’s important to budget for this cost before committing to a property.
2. Property Inspections and Reports
Before finalising your home purchase, it’s crucial to have the property inspected. While these inspections are an additional cost, they can save you from buying a home with significant underlying issues that could be expensive to fix. Common inspections include building and pest inspections, which can cost anywhere from $300 to $1,000 depending on the size of the property. You may also need to pay for a land surveyor or an asbestos inspection, depending on the age and condition of the property. These reports help identify any potential risks or repairs that might be needed.
3. Ongoing Home Maintenance and Repairs
After purchasing your new home, the costs don’t stop there. Homeowners need to consider ongoing maintenance and repairs. These expenses may include things like painting, servicing heating or cooling systems, fixing leaks, or replacing appliances. These costs can vary depending on the age and condition of the property, but it’s a good idea to set aside a maintenance budget of around 1-2% of the property’s value each year.
How to Prepare for Hidden Costs
It’s important to factor these hidden costs into your home buying budget to avoid surprises later on. Start by doing thorough research and speaking with a financial advisor to help you estimate all the costs involved.
Need Help Navigating the Home Buying Process?
At Broker Vision, our expert brokers can guide you through every step of the home-buying process. From helping you secure the best loan to providing advice on hidden costs, we’re here to ensure you make an informed and smooth transition into homeownership. Contact Broker Vision today to get started on your home-buying journey!