What costs are involved in buying a home? Posted on August 8, 2017January 10, 2018 by admin Things can add up quickly so it’s helpful to have a clear understanding of the total costs involved in buying a home. The key things to budget for are: Pre-purchase inspections A pre-purchase pest and building inspection will show up any building defects, illegal work or pest issues that could be costly to fix further down the track. If you’re buying an apartment, a strata search will provide information on any levies, insurance details, disputes, history of repairs and more. Government charges Property transfer stamp duty is a state government tax payable by the buyer and is calculated on the price paid for the property. As it is a duty for transferring the title of a property, it will be imposed whether or not the purchase is financed with a mortgage. See our stamp duty calculator for more details. You could also face a number of other government charges including a property transfer fee, mortgage stamp duty and a mortgage registration fee. Government charges vary between states. Insurance Some insurance products you may consider include: Home and contents insurance: A must-have that protects you financially if your home or belongings are damaged by fire, storm and in some cases, flood, or you experience loss through burglary. Mortgage protection insurance: Takes care of part, or all, of your mortgage payments if you get injured, become too ill to work, or even die. Income protection insurance: This pays up to 75% of your income if you are ill or injured and unable to work. The premiums are usually tax deductible, however tax is payable on benefit payments. Legal fees These vary between providers, but property solicitors fees typically cost around $2000 in NSW. Moving in costs When you’re ready to move into your new home, you’ll generally face a number of costs. These include furniture removal, utility connections – gas & electricity, telephone, council and water rates and postal redirection. If buying an apartment, you should also allow for strata fees. Posted in Advice, First Home Buyers, Guides, Home Loans, Property.