Aside from the purchase price are you aware of the other costs involved in buying a property?
- Transfer duty - In addition to the purchase price you will be required to pay transfer duty otherwise known as stamp duty. The amount of duty payable will depend on the purchase price and your current and future plans for the property including whether you intend on living in the property.
- Search fees – Ever heard the saying “buyer beware”? In Queensland, it means that the seller is not required to disclose certain information to you and that the buyer will need to undertake searches and enquiries to identify any potential issues with the property. These searches will also advise if there is any money outstanding for matters like rates, water or land tax. The search costs are not included in the purchase price.
- Inspection fees - As part of your investigations, you should undertake a building and pest inspection report. A building and pest inspector will undertake a physical inspection of the property and provide you a report which outlines any issues with the property.
- Body corporate fees - If you are buying a unit or a townhouse then the complex will be part of a body corporate and subject to body corporate fees or levies. These fees will be adjusted at settlement and you may be required to reimburse the seller if these have been paid for a period after settlement.
- Managing agent fees - If you are buying an investment property and the property is managed by a real estate agent then the agent will be entitled to property management fees. This will be an ongoing expense.
If you would like any legal advice regarding purchasing a property, please give us a call.
