Cost When Moving Into Your First Home

Owning a home involves more than just making mortgage payments. When you’re purchasing your first property, you should be aware of the following expenses.

Costs Associated With Purchasing

Several upfront costs are likely to apply when you purchase your first home, including a deposit and closing fees.

Understanding Stamp Duty

Stamp duty is a one-off tax levied by states and territories on the purchase of residential property. It varies according to the state or territory where you buy, with different rates applying depending on whether you are buying an established home, land or off-the-plan.

First home buyers may also be eligible for savings on stamp duty in some states. Take a look at My LMI Group’s stamp duty calculator to see how much you’ll pay on your first home.

A number of lenders will let first home buyers borrow money to cover the cost of stamp duty. If this sounds like you, talk to your local My LMI Group broker about options.

Solicitor Fees & Conveyancing Costs

When buying your first home, you’ll need to have the property formally transferred into your name. This process is known as ‘conveyancing’ and requires legal expertise.

It is important to read the contract of sale before you sign it and pay a conveyancer or solicitor to do this for you—the peace of mind can be worth the expense. Conveyancing costs vary, so ask a few firms about their fees before deciding who to use.

Building Inspections & Pest Control

When you buy a home you should take steps to prevent problems that could cost you more in the long run. One way is to conduct your own inspections before purchasing a home, but you will also want to organise professional pest and building inspections.

To find a pest and building inspection service in your area, search for “pest and building inspections” on local directories or use an Internet search engine to find local business reviews. Compare prices, and then contact a couple of providers to discuss their inspection options.

Mortgage Insurance

Mortgage protection insurance provides a safety net against job loss and sickness, protecting your ability to keep up with loan repayments.

The Costs Of Moving

When you move, there are several costs that are easy to forget about — even redirecting mail to your new address costs money. Here are a few other costs you should consider when calculating your moving expenses.

Removals & Transportation

You will need to hire a professional removalist to move all your belongings into your new home, whether you have just the bare necessities or a full home worth of furniture. The cost of moving can range from hiring a DIY ute, to paying for a professional removalist service.

When budgeting for removals, it is important to examine what you have, how much you will need to move and what you can do yourself. It is also advisable to compare prices between several removalists to ensure that you receive a good deal.

Utilities – Connection & disconnection

When you move into your new home, the last thing you want to do is waste the first day connecting utilities. Having your power, gas, and internet services connected on the day you move makes settling in a breeze; however, electricity charges can be based on your home’s location so this could be an opportunity to select a new plan and potentially save on power bills.

The Total Costs

After you have calculated all the costs associated with buying your first home, you will have a better idea of how much to set aside to begin living comfortably.

My LMI Group’s local brokers are trained to help you understand the home buying process. In the meantime, check out My LMI Group’s budget planner to see if you have enough income to support the cost of moving, plus save some extra cash for down payment and closing costs.