Hidden costs of buying a house
Posted April 12, 2021
10 overlooked new home expenses that could add thousands to your purchase price.
You’ve found your dream place, organised your finances, set the auction date in your calendar – but have you considered the hidden costs of buying a house?
In all the excitement of buying what is likely to be one of the biggest purchases you’ll ever make, it’s easy to overlook all the extra expenses involved in buying a property. And these can quickly add up to a substantial amount that will impact how much you can afford to pay for the property.
“Stamp duty is the biggest killer,” says buyers’ advocate Nicole Jacobs from Whitebox. Although this state government tax can amount to tens of thousands of dollars – even taking into account recent discounts applied to properties valued at less than $1 million – Nicole says a surprising number of buyers fail to factor in the extra cost when working out how much they can afford to pay and how much they need to borrow.
But it’s not just stamp duty. Nicole says even careful buyers have been known to forget additional costs such as mortgage insurance, building inspections and home and contents insurance in the rush to snag the perfect property.
While these expenses might seem incidental, Nicole says they are crucial to protect what could be your largest asset. For instance, a building inspection that costs a few hundred dollars could save you tens of thousands if it identifies a problem with the property before you sign the contract of sale.