Beyond the purchase price, there are several costs to consider when buying your first home:
- Deposit: Typically 5–20% of the property’s value. In Australia, the average first home deposit is over $100,000 in major cities.
- Stamp Duty: May be reduced or exempt for first home buyers in some states, potentially saving you thousands.
- Legal and Conveyancing Fees: Usually range from $1,000 to $3,000 to handle contracts and settlement.
- Building and Pest Inspections: Essential for ensuring the property is structurally sound; costs vary from $400 to $800.
- Lenders Mortgage Insurance (LMI): Required if your deposit is less than 20%, but may be avoided with government schemes.
- Moving Costs: Including removalists, utility connections, and initial setup expenses.
Understanding these costs will help you budget accurately and avoid surprises during the buying process. Always factor in a financial buffer for unexpected expenses.
