What's involved in buying a house

Toutys · 25-09-2007, 08:34 PM

What are the costs for stamp duty etc, and what are they called over there. We keep seeing the phrase 'For $290K plus Buyers to $340 plus buyer'.... what does this mean?

AndyandAlly · 25-09-2007, 08:59 PM

I looked at that on www.realestate.com
when you price up morgage payments and stamp duty it tells you how much its going to be I also think it depends if your a first time buyer, and how much deposit you put down...

Ally
x

AndyandAlly · 25-09-2007, 09:06 PM

Also forgot about legal fees (whoops), just seen a post that said $12K - $20K bummer....
Ally
x

Bobcat · 27-09-2007, 10:12 AM

Quote:

Originally Posted by Toutys

What are the costs for stamp duty etc, and what are they called over there. We keep seeing the phrase 'For $290K plus Buyers to $340 plus buyer'.... what does this mean?

All states down-under operate differently so where do you intend residing long term?

Where did you see the above mentioned phrase?

I have my own real estate agency here in Perth; I'm the Principal/Licensee................ can't help out re the system over in other states because as previously mentioned.......... they all operate differently and my licence is only valid here in WA............ so if there's anything you wish to know as to how the system works over here in the west.......... sing out?

Toutys · 27-09-2007, 10:23 AM

Hi Bobcat,

We are hoping to be in Melbourne before the end of the year, depending upon how long the (457) visa process takes.

We have seen the words 'plus buyers' on the Real Estate (Sale) website so were just wondering what that acutally meant.

Toutys

BullcreekBob · 27-09-2007, 12:24 PM

Quote:

Originally Posted by Toutys

Hi Bobcat,

We are hoping to be in Melbourne before the end of the year, depending upon how long the (457) visa process takes.

We have seen the words 'plus buyers' on the Real Estate (Sale) website so were just wondering what that acutally meant.

Toutys

G'day

$350K plus buyers are buyers who want to spend more than $350K.

Wanna guess what $400K plus buyers are?

Morven33 · 30-09-2007, 11:29 PM

Quote:

Originally Posted by AndyandAlly

Also forgot about legal fees (whoops), just seen a post that said $12K - $20K bummer....
Ally
x

Just bought our own house here in Queensland and legal fees were nowhere near around that.

You have to pay Stamp Duty on the price of the property then there is Stamp Duty on your mortgage. Then you have your Searches etc. and conveyancing fees. All in all we were around $5,000 all in and remember you can get a First Time Buyers Grant ($7,000) from the Government so we actually got some money back.

Its worth remembering also depending on how much you borrow (cannot remember the exact % I think its if you have to borrow over 70%) you have to pay mortgage insurance which could be a hefty sum depending on the amount you borrow.

The Jenners · 02-10-2007, 02:31 AM

Quote:

Originally Posted by Toutys

What are the costs for stamp duty etc, and what are they called over there. We keep seeing the phrase 'For $290K plus Buyers to $340 plus buyer'.... what does this mean?

Hiya,

There are two ways of buying a house here - via private sale (like the UK) where a price is set, and by auction, where it isn't (hehe!).

The prices you have quoted above are guide prices, where the agents are saying that the house will not go for less than that at auction. This is not however the reserve price, which can be up to 10% higher than say '$290k plus' (the reserve price and guide price must be within 10% of each other by law in Victoria, don't know about elsewhere).

Beware also that the sale price can go far higher than that percentage - the quoted figure if you ask a real estate agent (in VIC) is 15% more than the guide price, however a house near me recently was advertised at $480k plus and actually sold for $666k. This isn't unusual - I just add $100k onto the prices to give myself an idea of what we'll end up spending at auction looking around the $500-550k range.

All in all, I would say the key is research - go and see lots of houses and lots of auctions, make notes on what they are advertised at and check the auction results each week as they come out so you can see the price range you need to look at to find somewhere. Also, find a good mortgage broker (I am using Mark Yancos of Xinc Home Loans and he has been unbelievably helpful, offering advice on everything from what suburb is the best investment, how to find a good conveyancer and even where to buy a jetski!!!) as they should be able to help.

Stamp duty varies by State, but Your Mortgage - Home Loan Calculator, Mortgage Calculator And Interest Rates Updated Daily has lots of useful calculators which are great for working out fees and things.

Good luck :)