Hi all,
I’m very new to property investing, and have been reading magazines, books, internet sites etc etc. I also bought Investment Detective and have started fiddling with it to work out some possibilities, but I’ve hit a snag.
When filling in some of the sections, I lack some info, so I was wondering whether someone could either help me out, or steer me in the right direction to find the info I need.
What I’m after is rough estimates of the following costs…
1) Legal costs
2) Loan application costs
3) Mortgage registration
4) Mortgage duties
5) Building Inspections
6) Council rates
7) Utility rates
Insurance premiums
9) Maintenance costsI know that many of these figures vary fairly widely, but I am just after a rough idea at the moment.
In case it helps, I am looking in relation to small houses in regional NSW.
Thanks for your help.
Mark
Mark,
I don’t know the answer to all of the points you have requested, but I’ll help you as much as I can with what I do know.
Perhaps others in the forum can provide further info, or possibly correct me if any of my info is incorrect.
Firstly, have you attended a MasterClass yet? I reccommend that you do. I did my first last Sunday and learnt heaps!
Many of the figures you seek can differ from property to property or deal to deal.
Legal costs can vary depending on the type of service you are using. Though you might be looking at anything between $2000 and $4000 or more for legals. Legals can be broken up also inro specific costs for specific services, such as title searches, contracts.
Loan applications costs can differ from lender to lender, some I have seen are around $200 – $500.
I’m unsure what you mean by Mortgage Registration and Duties. Perhaps they are calculated as a percentage of the mortgage amount (like mortgage stamp duty) and they differ from state to state.
You may find this info from the Department of Internal Revenue in your state – they all have websites with information.
Building Inspections wouldn’t bee too costly, but again prices differ from builder to builder around the country. You could also get a quantity surveyor to carry this out but may or may not cost more.
Council rates are determined by the local governing authority. They calculate what the land value is and charge a small percentage rto the property owner as rates. These can differ from differing councils. You can call any council and ask them for their rate charges (many have dedicated staff for rates) or if you have a specific property on the market, the real estate agent should have this information AND the utilities expenses for the property.
Obviously the utilities differ from property to property depending on peoples usage!
Insurance premiums – what types of insurance are you wanting info on? I need some specifics on what you are seeking info for.
Maintenance costs differ again from property to property. Older properties are going to require more TLC than newer ones (unless the new ones are very dodgy built!).
I would budget for perhaps 2%PA or something similar tor maintenance, but again depending on the property age, environmental factors, etc, etc.
Hope this helps!
Learn, Love, Strive. Make a difference!
I have just bought the CD but have not used it yet, but thought I might ring around for rough prices e.g. building inspection report costs and the like. I think once I’ve rung/researched it at the beginning then I may be able to use the figures again (to analyse like deals). I don’t think there is a real short ‘short’ cut to this, as you want your figures as accurate as possible.
I am an authorised representative for Suncorp Insurance I would be happy to email you a quote for real estate
the information I need is
the replacement of the house (not the market value)
address of house postcode
age of house
the material it is made ofregards
Merrianne
Originally posted by markbarnsley:1) Legal costs
Vary between about $600 (Conveyancer) to $1,500 (Solicitor) for a standard conveyance2) Loan application costs
Average is around $600 for a standard loan.3) Mortgage registration
Less than $100 in all States4) Mortgage duties
About 0.5% of the loan amount.5) Building Inspections
$200-$500 for basic inspections.6) Council rates
Change drastically depending when you buy – amount is pro rata for what is still owing at date of purchase.7) Utility rates
Depends on what you use – electricity, gas, etc. Insurance premiums
Again vary greatly from insurer to insurer but a few hundred dollars per annum for a $300,000 home should be about right.9) Maintenance costs
How long is a piece of string? This depends on the property condition.Don’t forget Transfer Stamp Duty which is about 3-4% of purchase price.
Some calculators at the following site may help…
http://www.mortgagepackaging.com.au/index_files/tools_calculators.htm
Robert Bou-Hamdan
Mortgage Adviser
Insurance premiums
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