Buying a house is a major investment, and it’s important to make sure your finances are in order before starting the process. Once you have started to gain an understanding of the market, the next step is to start thinking about how you’re going to pay for it. So how much money do you need?
How much does it cost to buy property?
Deposit
How much are you willing to pay upfront to secure your home? The simple truth is that the more deposit you pay, the more likely you are to get a loan.
The Australian Securities and Investments Commission recommends having a deposit of 20 per cent of the purchase price of your anticipated property. Some states will allow as little as 5 per cent for a deposit.
Of course, it depends on your lender and their rules, as well as your financial situation.
Other costs
Inspection fees are not compulsory, but it is a good idea to get a house inspection to uncover any likelihood of hidden costs you may have to pay once you’ve bought the property.
Loan establishment fees, legal fees and stamp duty all vary from state to state, so check in with your local authority.
TIP – First home buyer? Check to see if you’re eligible for the First Home Owner Grant in your state. firsthome.gov.au