First home buyers usually get excited by the idea of buying their first dream home and often underestimate the true costs of buying a home and the ongoing costs of homeownership. We’d like you to get the full picture by considering all the costs involved with buying and owning a house before taking the big decision.
Let us take a first home buyer in Sydney buying a $600,000 property at 90% LVR as an example.
Property price | $600,000 |
Home loan details | $540,000 @2.9% p.a. |
Transfer Registration | $143.50 |
Stamp duty | $0.00 (Stamp duty is waived up to a certain price threshold for first-time buyers) |
Total | $143.50 |
Mortgage Registration | $143.50 |
Loan establishment fees | $1,000 |
Settlement fee | $1,000 |
Lenders Mortgage Insurance fee | $14,301 |
Total | $16,444.50 |
Valuation fee | $300 |
Conveyancing fee | $1,200 |
Removalist Costs | $1,000 |
Building Inspection Report | $300 |
Pest Inspection Report | $150 |
Connecting phone, cable and internet | $100 |
Total | $3,050 |
Mortgage Repayments | $26,964/year ($2,247 x 12 monthly repayments) |
Content Insurance | $100 |
Strata fees/body corporate (i.e. building insurance, garden maintenance) | $2,000/year |
Council Rates | $500 |
Water Rates | $500 |
Total | $30,064 |
Total Costs of Home Ownership Year 1 | $49,702 |