If you’ve been dreaming of owning your own home in sunny Queensland and wondering what other costs are involved in buying a home, read on. Buying a house isn’t just about the final negotiated price, there are quite a few costs that most buyers either don’t know about or have forgotten since their last purchase. In this guide, we’ll peel back the layers and uncover the real costs of buying a house in Queensland.
The Purchase Price is Just the Tip of the Iceberg
Let’s begin with the most obvious cost when buying property, which is the negotiated purchase price. When browsing realestate.com or looking through real estate agent windows, this is the number most buyers are focused on. And for good reason, after all, it’s the largest chunk of change you’ll be shelling out in your home-buying journey. But don’t be fooled into thinking it’s the only cost you’ll need to budget for.
Stamp Duty Can Be the Silent Killer
Arghhh, stamp duty – the bane of every homebuyer’s existence. This sneaky little fee from the Queensland government can add thousands (or even tens of thousands) of dollars to the cost of buying a house in Queensland. Stamp duty is calculated as a percentage of the purchase price. So, the more you pay for a property, the more stamp duty you will pay. There is some consolation and benefit in paying stamp duty. The revenue generated goes to the state government and contributes to funding various public services and infrastructure projects such as education, health, and roads.
Legal Fees for Crossing the T’s and Dotting the I’s
Buying a property is exciting but there are some legalities that need to be addressed before you can move in. You’ll need a conveyancer or solicitor (if your property transaction is a little more complex) to handle the property transfer from the current owner to you. Compared to the house price and stamp duty, most conveyancers are cheap in comparison. Find a good fixed-fee conveyancer who will handle the title searches, review contracts and work with your banks with no hidden fees. You need a conveyancing expert to ensure that everything is above board and that you’re protected every step of the way.
Building and Pest Inspections
Buying a house is a bit like peeling an onion, you never know what you’ll find beneath the surface. Most home buyers only get to inspect a property for 20 minutes or so, before making an offer on one of your biggest purchases. Which is why you need an expert building and pest inspection to make sure that the home you’re about to buy, doesn’t cost you thousands of dollars in repairs that you didn’t know about. A building and pest inspection will check floor spaces, roof cavities and other areas of the home for any issues or pests that can cause problems. While they may seem like an unnecessary expense, trust us – they’re worth every penny.
Loan Fees – Paying for the Privilege
Unless you’re sitting on a pile of cash, chances are you’ll need a home loan to finance your property purchase. Unfortunately, a mortgage isn’t free, there are a range of costs that you need to pay to finance your home. Some of these fees include application or mortgage establishment, property valuation, Lenders Mortgage Insurance (LMI) if your deposit isn’t enough, ongoing account, and early repayment fees. It’s enough to make your head spin and your wallet weep. Talk to the best mortgage broker who can explain all fees and charges and find you the best loan which may not necessarily be the loan with the lowest rate!
Moving Costs – Getting from A to B
Congratulations, you’ve signed on the dotted line and the keys are in your hand, but there’s still one final cost to consider. Moving your things from your old home to your new one. It doesn’t matter if you’re hiring a professional removalist or if you’re getting help from friends and family, moving your stuff costs money. It costs more if you have lots of things or if you’re moving long distances with bulky furniture. A way to reduce your moving costs is to sell, recycle or gift anything you don’t want to move to your new home.
The Hidden Costs – The Devil is in the Details
But wait, unfortunately, we’re not done just yet. There’s a whole host of hidden costs lurking in the shadows, just waiting to catch you off guard. Some of these include council rates to strata fees to home and contents insurance, to any jobs or updates you want to do on your new home, the list goes on and on. It’s enough to make you wonder if owning a home is worth it – but trust us, it is.
In Conclusion – The Price of Homeownership
So, what does it really cost you to buy a house or unit in Queensland? The short answer is a lot more than you might have thought. It isn’t just the purchase price of the property, the price of buying a home includes stamp duty, legal fees, moving costs and more. But despite the hefty price tag, it’s the Australian dream to own a property. So, if you’re prepared to dig deep and roll up your sleeves, the rewards can be well worth the investment. Happy house hunting!
