The Property Buying Costs Calculator is a tool designed for Australian property investors to estimate the buying costs of their investment property.
The calculator takes into account a number of key costs associated with purchasing an investment property in Australia, including stamp duty, legal fees, building and pest inspection fees loan application fees etc.
The calculator is designed to be used as a guide only, and investors should seek professional advice before making any final decisions about purchasing an investment property.
Property buyers in Australia should be aware of the various costs associated with purchasing an investment property. These costs can add up quickly, so it is important to estimate them in advance in order to avoid any surprises.
The first cost that must be considered is the purchase price of the property itself. This is the most obvious cost, but there are others that must be taken into account as well. These include stamp duty, legal fees, and any necessary repairs or renovations.
Stamp duty is a tax that must be paid when purchasing a property and is calculated as a percentage of the purchase price. Legal fees will vary depending on the complexity of the purchase, but can range from a few hundred dollars to a few thousand.
Conveyancing fees are charged by solicitors or conveyancers for handling the legal aspects of the property purchase. These fees will vary depending on the complexity of the sale, but you can expect to pay around $1,000-$1,500 for conveyancing services.
Lenders Mortgage Insurance (LMI) is insurance that is required by most lenders if you are borrowing more than 80% of the purchase price of the property. LMI protects the lender in the event that you default on your loan repayments. The cost of LMI will vary depending on the size of your loan and the LVR, but you can expect to pay several thousand dollars for this insurance.
If you are purchasing a property at auction, you will also need to pay a deposit of 10% of the purchase price. This deposit is paid on the day of the auction and is non-refundable if you are the successful bidder.
There are also a number of other costs associated with purchasing a property in Australia, such as pest and building inspections, strata fees (if applicable), and connection fees for utilities. These costs will vary depending on the property you purchase and the services you require.
Finally, any repairs or renovations that are needed should be estimated before making an offer on a property. These costs can vary widely depending on the scope of work required, but it is important to have a realistic estimate in mind before making an offer.