There are a number of extra, often seemingly hidden costs buyers need to be aware of when purchasing their first home. Here are four upfront costs that you should be aware off.
1. Pre-Purchase Inspections
Professional building and pest inspectors can offer a potential buyer insight as to whether a property may have defects and how much it will cost. The cost for hiring these inspectors should be in the budget to allow for detailed reports and cost of repairs, if needed.
2. Consider Conveyancing
Transferring ownership of a property from one person to another is handled by solicitors or conveyancers. Conveyancers are great for reviewing contracts, and can explain things such as inclusions, easements and special conditions, or request special amendments for contentious terms. Hiring a conveyancer can help you understand what’s written in the contract as well as helping to finalise the purchase.
3. Upfront Home Loan Fees
Buyers are often charged an establishment fee by their lender to set up the home loan. Lenders may also charge a valuation fee to assess the property and ensure that the value of the house is the same as what the buyer is paying. These additional costs should also be worked into the buyer’s budget to ensure the property they want to be is up to a quality standard.
4. Home Insurance
Building insurance is a smart investment as most policies cover things such as natural disasters, fires, vandalism, as well as other possible risks to your home. Apartment owners tend to be covered by a building policy but enquiring about your coverage is always best to know what is or isn’t covered by your insurance provider. Apartment owners may also want to invest in contents insurance to cover things from personal belongings to flooring, kitchens, bathrooms and more.