Most people think that when they want to buy a house, the only serious cost associated with the process is the actual cost of the house. In reality, there are various other costs associated with the home buying process in Australia. Are you sure you understand it all properly? Read below to learn more about various costs associated with buying a home in Australia:

Legal Fees

The most significant cost, other than the actual mortgage, associated with a home are the legal fees. When you buy a home, you have to have the former owner’s house title legally transferred to your name. This is typically done by a conveyancer or a solicitor. Conveyancers tend to charge a lot less than solicitors, who are actually lawyers. The fee associated with the title deeds tend to be proportional to the cost of the house. For example, for a property for sale Emerald that costs about $400,000, the conveyancing fees would cost around $700. For the solicitor, the price will be slightly more. If you hire a law firm, the costs will be much more considerable.

It should be understood that the legal fees are not limited to just the consultation. The solicitor or the conveyance would bill you for other charges such as fees for house searchers, stamp duties, and office tasks like making photocopies. This miscellaneous charges could add up to extra hundreds of dollars.

Real Estate Agents

Real estate agent fees are typically charged by the seller and not the homebuyer. But if you hire a real estate agent to aid in a search, you may incur a fee. The fee largely depends on the agency you are hiring from.

Taxes

In addition to stamp duties paid to the government, there are taxes associated with home purchases. You will have to pay Goods and Services Tax (GST) when you buy land anywhere in Australia. It also sometimes applies to purchase of houses. You should check your purchase contract to see if GST applies to this transaction. GST mainly affects real estate investors, particularly the ones who own multiple properties and sell them.

State Duties

Other than GST, which is paid to the national government, you will have to pay various duty charges to state government. The duty fee depends on the state. These fees are simultaneously called stamp duty or transaction duty and apply when home titles are transferred. The duty depends on the value of the house and may range from 2 to 5 percent. These duty fees are not set and may change from year to year.

Town Council Charges

Town councils sometimes impose levies on new houses. In case you plan on renovations for erecting a new structure, you will have to pay charges. There may also be an annual rate for providing facilities like water and sewage clearance.

While the above charges do not add up to hefty fees that match the price of the house, they may be quite extensive. In combination, you may end up paying thousands of dollars in taxes, duties, or council fees. You should take all this into consideration when budgeting for a new home.

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