Initial Cost of buying property

Hi All,

Can you please let me know if there are any other cost associate with purchasing property

1. Initial deposit (5%)
2. Buyer's Agent, if using any
3. Conveyancers / Solicitor
4. Landlord insurance
5. Mortgage Insurance (Do we need it ?)
6. Building and Pest report
7. Stamp Duty

After I bought then
1. Property Manager
2. Strata fees in case of unit (Any charges for house ?)

Also, please suggest what are ways to arrange money for above costing. Bank will give 95%, how to arrange rest 5% + 5% purchasing cost (approx) ? Just wanted to keep saving's safe for backup plan.
 
Hi All,

Can you please let me know if there are any other cost associate with purchasing property

1. Initial deposit (5%)
2. Buyer's Agent, if using any
3. Conveyancers / Solicitor
4. Landlord insurance
5. Mortgage Insurance (Do we need it ?)
6. Building and Pest report
7. Stamp Duty

After I bought then
1. Property Manager
2. Strata fees in case of unit (Any charges for house ?)

Also, please suggest what are ways to arrange money for above costing. Bank will give 95%, how to arrange rest 5% + 5% purchasing cost (approx) ? Just wanted to keep saving's safe for backup plan.

You don't have a choice about lenders mortgage insurance, especially if you're borrowing 100% of the purchase price. LMI for that sort of LVR is likely to push your total purchase costs above 5%. Insurance is a recurring expense, not one off. Building insurance if a house, though you wouldn't have strata costs. There may be other assorted costs like loan application fees, depreciation report, etc.

After you buy, you'll have to pay council rates, body corp (if a unit), and some water charges.
Alex
 
Also, please suggest what are ways to arrange money for above costing. Bank will give 95%, how to arrange rest 5% + 5% purchasing cost (approx) ? Just wanted to keep saving's safe for backup plan.

a) equity in existing property; b) private loan; c) vendor finance; d) cash

Also, which lenders are doing 95% these days and what's the additional interest cost?
 
a) equity in existing property; b) private loan; c) vendor finance; d) cash

Also, which lenders are doing 95% these days and what's the additional interest cost?

Thanks for options. Just trying to workout following for me

a) equity in existing property - Currently renting, don't have IP or PPOR

b) private loan - Personal loans are very expensive. Do you recommend any ?

c) vendor finance - How much they charge. Any reference link/doc

d) cash - If it is same money as in bank, then would like to keep that for backup plan. Don't have cash in hand as such.

Need to check which with MB who is giving 95%, still in the process of understanding that. If I don't get 95%, I need plan a lot then to pay 10% :mad:
 
Need to check which with MB who is giving 95%, still in the process of understanding that. If I don't get 95%, I need plan a lot then to pay 10% :mad:

uh, even if you DO get 95%, you'll need 10% cash if you're buying it as an IP. The total cost will be at least 105% of the purchase price. At that LVR, possibly more.
 
Hi All,

Can you please let me know if there are any other cost associate with purchasing property

1. Initial deposit (5%)
.


That's a very low deposit. Do you have funds to use as a back up in case things go wrong (eg you loose your job, unexpected expenses crop up, illness, etc??).
 
That's a very low deposit. Do you have funds to use as a back up in case things go wrong (eg you loose your job, unexpected expenses crop up, illness, etc??).

At present I was in impression that I can get 95% loan and 5% deposit and 5% extra cost (approx). I do have backup funds but based on 5% initial deposit. I need to arrange accordingly now. I need to plan more now, looks like hard to get 95% loan.
 
Top