Hi All,
I just have one quick simple question. How much do you need to allow for the “hidden”costs? These would be items such as legal fees, buying of furniture (new), stamp duties, conveyancing / search costs, management fees.
Sorry if this sounds dumb but I have always rented property and am looking at buy-to-rent investment.
Thanks
Adam
Hi Gatbe7,
I always allow 5% of the contract (my) price. That’s the short answer, but someone else may expand on it.
regards
Marco
Gatby
Try http://www.yourmortgage.com.au/calculators/
there is lots of juck but some good starting points and ideas. For quick estimates I allow 5% also, but then refine it down when we are doing the calculations. If you regularly use a conveyancing solicitor, you should be able to call them and they can do the legals and stamp duty figures very quickly.Hi Adam
Try using one of the purchasing costs/calculators on one of the banks websites. They are quick to use and very accurate.
Cheers[
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Tracey Imbuldeniya – Finance Consultant
Ph: 0401 674464
Email:[email protected]Hi Adam,
The 5% rule is great, but if you want to break it down further here is how it usually looks…
Loan application (inc valuation): 600
Legal Disbursements: 150
Registration of mortgage fee: 124 (Gov charge)
Settlement fee: 100
Borrowers solicitor: up to 1500
Mortgage Stamp Duty: $5 + ($4 for every $1000) borrowed over $16,000)
Stamp Duty: See http://www.osr.nsw.gov.au for details… varies between states and goes up with the purchase price
Lenders Mortgage Insurance (LMI): usually paid if amount borrowed is over 80% of the purchase price… This is usually up to 2% of the amount borrowed
Insurance: Not sure how much, but it is required to settle the purchase.
Furniture: Not sure, a couple of thousand up to 20,000 of so, depending on tasteOtto Dargan
Home Loan Manager
Mortgage House Five Dock
0297128988
[email protected]
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