A GUIDE TO THE COST OF HOME PURCHASE

Council and Water Rates Adjustment
The buyer and seller share these costs in proportion to the length of time each party owns the property during the rating period.

Electricity Reconnection
The electricity is usually disconnected when the ownership of the property changes. Approximate cost: $0 for existing customers of one year and Centrelink Concession Card holders with good credit history, or $180-$200 security deposit for new customers.

Telephone Reconnection
Telephone lines are usually disconnected when the property changes hands. Approximate cost: $59 where phones were connected previously or $299 where phones were not connected previously.

Removalist Cost
Removalist costs will depend on distance, how much furniture you have, and who is doing the packing. Approximate cost: $550-$3,500.

First Home Owner Grant Scheme
The First Home Owner Grant Scheme is a national scheme to assist first home buyers. For further information, please contact the Office of State Revenue.

Home Loan Application Fee
This is a fee charged by a bank or other lending body when you apply for a loan. Approximate cost: $NIL – $800. There may be additional costs preparing and registering the mortgage.

Valuation Fee
Your lender usually requires a formal valuation of the property you are buying. This fee may be included in the application fee charged by your lender.

Mortgage Insurance
Your lender will require you to take out mortgage insurance if you are borrowing more than a set proportion of the property’s valuation. This insurance protects the lender if you default on the loan and the property is sold for less than the outstanding loan amount. Premiums vary according to the loan amount, property price and the loan-to-value ratio. The mortgage insurance premium is a once-only payment.

Survey Report
A survey shows where the property is in relation to the boundaries of the land. Lenders often require a survey report. Approximate cost: $400 – $700.

Conveyancing Fees
Conveyancing is the process of transferring the property from the seller to the buyer. You can engage a solicitor or conveyancer to do this or you can do it yourself. There are no set fees changed for conveyancing. You should get a written estimate of the likely cost before engaging the solicitor or conveyancer. Approximate cost: $700 – $2,500.

Disbursements
Your solicitor/conveyancer will charge for some of these expenses paid on your behalf during the conveyancing process.

• Title search $20 – $80
• Local Council (S 149) $40 – $100
• Local council, building certificate (S 149D) $210 (Application must be lodged with survey report)
• Sydney Water (S 66) $15
• Drainage diagram $15
• Department of Education and Training $13
• Land tax (S 47) $15
• Roads and Traffic Authority $26
• Transgrid (electricity/power stations) $27
• Council rate enquiry $60
• State Rail Authority $28
• Outstanding notices for council $40 – $150

Stamp Duty
You must pay contract stamp duty on the purchase price of the property (or valuation in certain circumstances). Duty must be paid within three months of the date of exchanging contracts, unless buying ‘off the plan’ or a house and land package.

Purchase Price & Rate

• Up to $14,000 $1.25 per $100 ($10 minimum)
• $14,001 – $30,000 $175 plus $1.50 per $100
• $30,001 – $80,000 $415 plus $1.75 per $100
• Over $80,000 $1,290 plus $3.50 per $100
• Over $300,000 $8,990 plus $4.50 per $100
• Over $1,000,000 $40,490 plus $5.50 per $100

Mortgage Stamp Duty
Mortgage Stamp Duty for owner/occupiers was abolished on 1st September 2007. Mortgage duty on investment housing ceased on 1st July 2008.

First Home Plus
The NSW Government’s duty concession scheme for first home buyers provides exemptions or discounts on contract stamp duty for first home buyers in NSW. For further information about First Home Plus, enquire with the Office of State Revenue or your solicitor/conveyancer.

Inspection Fees

• Building inspection – A building inspection checks structural soundness and lists any visible defects and necessary repairs. Approximate cost: $300 – $700
• Pest Inspection – A pest inspection checks for any signs of past or present pest infestation. Approximate cost: $200 – $350
• Strata Inspection – A strata inspection examines and reports on the written records of the owner’s corporation. It is additional to the certificate that the seller supplies, providing relevant information about strata levies and insurances. Approximate cost: $200 – $350.

Home Building Insurance
We suggest that you arrange home building insurance before completing the purchase. The cost of building insurance will depend on the age, size, location and type of construction of the property. Two types of insurance cover are available.

• Replacement cover – to reinstate your property to its former condition. It means, simply, new for old.
• Indemnity cover – to repair or reinstate you property taking into account depreciation on the dwelling. Approximate cost: $220 – $1,000