Paying what a property costs at the time of purchase is not enough. To buy property is no less than a real marathon. A little knowledge of these expenses helps you sketch an outline of your budget before you purchase house or buy land.
Searches and Inspections
You should not switch over contracts to buy land or purchase house until you are sure to have the necessary searches as well as inspections done. Seek advice from your solicitor or settlement agent regarding what sort of searches and inspections you need to carry out while buying property.
Searches and inspections are as follows:
Building inspections – The cost of building inspections varies with the details of different parts of a house in a report on the house. The report is a written document on the flaws in the structure of the house if it has any. It is a house buying policy to view the report meticulously when you step out to buy property.
Pest reports – This report includes in-detail information on the pest-infested parts of a house and their possible treatment. You should purchase property considering this report.
Surveys – Hiring the service of a legal representative to ensure the position of the house as well as its boundaries will cost you some amount before you buy property.
Costs that Buying an Investment Property Involves
Registration Fees – Registration fees depends on the economy of the state where you purchase house or buy land. It is different in different states. These fees are paid for registering the documents on the purchase of the property.
Loan Mortgage Insurance – You will have to pay loan mortgage insurance if you borrow above 80% of the cost that is to be paid to buy investment property.
Mortgage Application Fee – Lending institutions charge you this fee to make up the costs that the processing of a mortgage application involves. Some brokers ask for an extra fee for processing your mortgage.
Conveyancing – Conveyancing cost differs on basis of whether you hire the service of a Conveyancer or a Solicitor. A Solicitor costs more than a Conveyancer.
Other costs involved with buying property are sinking funds, body corporate fees and liability insurance that you may have to bear in order to cover any sort of damage caused to the property.