The real cost of owning a home Author: Diana Antonious Buying property can be among the important financial decisions you will ever make. Whether you’re buying a home or an investment, it’s important to consider all the details from every angle – especially the cost! It’s crucial that you organise your finances before placing an offer or bidding at an auction. You will need to know how much you can borrow and what deposit you will need should your bid or offer be successful. A deposit is generally 10 percent of the purchase price and the remaining balance is paid at settlement, usually negotiated 30 to 120 days after the sale. Arranging your home loan You need to be sure you can finance your loan. Getting the right advice and arranging a pre-approval loan amount can save you time on research, as well as the cost of additional fees such as lenders mortgage insurance. Once you have purchased your home, ensuring your home loan is set up to maximise benefits and interest repayments is a crucial step. Home loan options will vary depending on whether you occupy the property, rent it out, or hold it as an investment. These variables include the loan amount, term, interest rate (fixed, variable or hybrid), re-draw facility, and options for an offset account. Ensuring you have the right combination to suit your needs can save can you money up front and in the long-term. After your deposit, you will need to allocate money for:

• Stamp duty
• Legal and conveyancing costs
• Land title transfer fees and mortgage registration fees
• Property valuation or building inspection fees
• Any council rates, water, power or gas charges, or body corporate fees (if the property is an apartment or unit in a body corporate block)
• Ongoing mortgage repayments
• Rates and utility connections
• Home and contents insurance
• Cost of any repairs or renovations that may be required
• Costs associated with moving into the new home

Getting the right advice early on can put you in the best position possible to secure your future. Contact our office to speak to one of our financial advisers and mortgage brokers for support with these life-changing decisions.     General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.