When most people start looking for a home to buy, they focus on the purchase price. But there are several other costs you’ll need to factor in to avoid surprises and keep your budget on track.
Stamp duty (transfer duty) in NSW
One of the biggest is stamp duty, officially called transfer duty in NSW. It’s calculated based on the purchase price of the property and can be a significant expense, often amounting to tens of thousands of dollars. First home buyers may be eligible for exemptions or concessions, so it’s worth checking the current NSW thresholds before you commit.
Legal and conveyancing fees when buying a home
You’ll also need to budget for legal and conveyancing fees to ensure your property contract is reviewed and the settlement process runs smoothly.
Building and pest inspections for peace of mind
Building and pest inspections are another essential cost, giving you peace of mind that the home is structurally sound and free from major issues.
Loan costs and lender’s mortgage insurance
If you’re taking out a loan, there may be additional costs, such as application fees or the lender’s mortgage insurance, if your deposit is less than 20 per cent. These can add thousands to the overall cost of buying a home. Understanding how these fees are calculated can also help you explore strategies to reduce them.
Practical moving and set-up expenses
Then there are the practical expenses, such as moving costs, connecting utilities, and any immediate updates or repairs you want to make once you move in.
Creating a realistic budget for your Sydney property search
By understanding these costs from the outset, you can establish a realistic budget and avoid overextending yourself.
How a Sydney buyer’s agent can guide you
If you’re unsure where to begin, I can help you map out the full cost of buying your home in Sydney so you’re prepared from day one.
