Costs involved
Apart from the actual purchase price of a new home, buyers should budget for a number of other costs associated with buying a property.
Stamp duty and registration fees are applicable to most property purchases. When considering buying a property and securing your finances, you must take into account these Government charges.
In South Australia buyers must pay,
- Conveyance stamp duty and Land Titles Office fees based on the purchase price of the new home
- Valuation fees: A Valuation is needed so that a current fair market value for your home can be established for tax purposes.
- Escrow fees: During the closing process, an escrow account will usually hold the money while the buyer and seller finalize the agreement.
- Points or origination fees: An origination fee is paid to the bank or lender for their services in creating the loan. A point is 1 percent of the loan, and is often worked into the total cost of the loan.
- Credit report fees: Depending on the loan, the lender may require a verified credit report.
- Survey fee: If an existing survey of the land cannot be obtained, a new survey will have to be conducted in order to determine exact boundaries of the property.
- Pest or mold inspection: The purchase of an older home may require an inspection for pests such as termites as well as mold. This requirement can vary according to location.
- Property taxes: In some cases, you may owe some property taxes immediately if the seller has already paid taxes for a time period where you will be the owner. Also, there may be other municipal taxes or fees for sewer or water that need to be taken care of.
Keep in mind that not all of these fees will always apply. Some may be waived or paid for by the lender or seller.
Concessions are available for First home Owners, speak to a Golden Touch Consultant today to understand what the fees are and who is responsible for paying them before finalizing the purchase of your new home.