Budgeting for first home buyers: what’s the right price?

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A home is simply one of the most expensive purchases you will ever make in your life, so First Home Buyers must consider the lump sum costs of buying a property before doing it.

Upfront costs

The usual standard upfront costs with buying a property include:

1. Lenders mortgage insurance. 

When you borrow more than 80% of the property value, the lenders get mortgage insurance. It is best to consider saving up for the 20% deposit before you make the purchase.

2. Legal & conveyancing fees. 

Need help with dealing with the vendor and documents? You can seek a solicitor or conveyancer to help you, but be mindful that this adds up to your fees. 

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3. Stamp duty.

The amount of this expense varies from state to state and is unavoidable. Concessions exist for first home buyers. 


4. Building & pest inspections.

This is just one of the points we have mentioned on our previous blog .  To check the property's condition and to avoid any hidden liabilities, you have to get a building and pest inspection.

The good thing about these inspections, they can also provide you with a genuine opportunity to renegotiate the price.

Ongoing costs

First time home buyers also have to remember that there will be ongoing costs associated with owning a property such as:

  • Water and council rates,

  • Strata and body corporate (for townhouses and apartments),

  • Home and contents insurance 

  • Regular maintenance and repairs.

Sally Prowse