Upfront And Hidden Costs When Buying A Home In Melbourne

According to official data, the median house cost in Melbourne is $918,350. But this purchase price does not include the upfront and hidden costs that will be added to your house price and can increase it by up to $40,000. These extra costs also depend on where you buy a property and the house's value. For instance, some state governments include stamp duty fees and local council fees, and some state governments do not. Therefore before you purchase a home in Melbourne, you must look at the hidden and upfront costs below to get the correct estimate of what your total price will be:

Legal Fees

You will also have to pay a legal fee for hiring a professional to go through and complete all your paperwork. Your legal professional will prepare your contract, exchange documents and then legalise the sale. To avoid any added costs to this fee, you must speak to your solicitor or group of solicitors in advance and ask them about the estimated fixed legal fees. Ideally, the total legal fees cost around $1,800 in Melbourne.

Stamp Duty

Your stamp duty is an added cost that your state or local government charges when they transfer property to you. This stamp duty fee is calculated based on several factors like the home's value, the region of the home, if the house is vacant and if you are a first-time home buyer. The stamp duty is not fixed and can vary from house to house, but on average, it comes to around $21,970 in Victoria, Australia. You can also use this online land transfer calculator to estimate your stamp duty cost based on the date of your contract and the value of your home.

Building And Pest Inspections

Before you buy a property, it is a good idea to hire a building or property inspector to check the condition of your home and look for possible repairs. From damaged walls to faulty pipes and cracked floors, these inspections will help you estimate the number of repairs needed and the costs involved. You should also get a pest inspection to look for any infestations before any damage is done. Your pest and building inspection costs can come to an average price of $600.

Transfer Fee

Your transfer fee depends on the state in which you are buying a property and refers to the cost of transferring a property title from one owner to another. This fee is determined by the state government and can be either fixed or variable depending on the rules and regulations of that area. In Victoria, the general transfer fee is around $1,373 and is mostly fixed.

Conclusion

Therefore it is important to add these hidden costs to your total house price to determine how much you will be paying. From transfer fees to legal fees, stamp duty and pest inspection fees, these can add up to a lot. If you need help calculating the costs when buying a new home, you can take the help of agents at the Agent Corner property service in Melbourne. These professionals will also help you find the best properties according to the market rates in your area.