Apart from the deposit required when purchasing an investment property, there are other expenses involved.
These expenses include:
This is the most expensive cost and is based on the cost of the property you are purchasing. The rate varies from State to State and is paid to the State Revenue Office.
Once again, these are a State based fee and vary from State to State. They are payable to the Land Titles Office when you register documents that relate to the purchase of a property.
Loan Mortgage Insurance is payable if you are borrowing more than 80% or using a non-conforming loan.
This is a fee charged by lending institutions to cover the costs involved in processing a mortgage application, some Brokers are even asking for an additional fee to process your Mortgage.
These fees are always negotiable and you will find that just about all Lenders will remove them upon request.
Conveyancing costs will differ depending on whether you use a Solicitor or a Conveyancer; a Solicitor will cost more, sometimes up to and over $2000- all up including disbursements.
You will however have better protection in most instances if something goes wrong as Solicitors have the backing of the better qualifications and insurances.
A Conveyancer will be generally cheaper but be aware that quoted prices don’t cover dispersements and you may need to consult a Solicitor anyway if something goes wrong or peculiar with the process.