Enquire about Loans
or other Services...







What are the Costs

 

As well as your deposit it is recommended that you budget up to 7% of the purchase price to cover your costs.  These fees and charges may include:

 

• Building and pest inspection and/or strata report : (refer to Client Login for this document). This should be completed before the 10% deposit is paid.

 

• Loan application and Settlement fees:  Often removed, absorbed by the banks todays lending climate.

 

• Valuation fees: typically absorbed by the banks due to the introduction of packages and annual fees.

 

• Lenders Mortgage Insurance (LMI) -  (refer to client login for a calculator). Lenders' Mortgage Insurance protects a lender against loss should a borrower default on the loan and the property is subsequently repossessed and sold. Lenders are able to approve more home loans and enhance their ability to lend to a broader range of customers. For borrowers, LMI means they can purchase a home or an investment property sooner, allowing people with less than 20% deposit to get into the property market earlier. This is a significant charge that may be drastically reduced depending on the lender selected. Birchcorp will take this charge in consideration when selecting a bank that is suitable to your needs. Depending on the loan amount, a selection based around LMI can save up to $15,000 from one bank to the next.

 

• Solicitor/Conveyancer fees: Typically $1100 - $1800 depending on your location and the complexity of your business structures.

 

• Stamp duty: When you purchase a property you have to pay stamp duty to the government.  This is a tax levied for money transaction by the Office of State Revenue.  Stamp duty is collected for funding state welfare programs like public safety, education, healthcare and law enforcement programs.  Stamp duty is usually calculated as a certain percentage of the property’s purchase price.  State governments have grants or concessions to offer eligible home buyers relief from stamp duty.  If you are a first time home buyer you can first calculate how much the stamp duty will be for your home or land price. You can easily calculate this from our calculators.

 

• Property insurance : House and Contents, landlord, or building insurance (stand alone).

 

• Connection fees : phone/gas/electricity/water.

 

• Council rates: Yearly or quarterly.

 

• Strata fees (for units/apartments) : Refer to client login for strata laws.

 

• Removalist fees: Transport and packaging.

 

• Income Protection, Life Insurance and other personal Insurances: Insurances are an essential cost to protect your family's home, or investments from the creditors in the unfortunate event of injury or death. Ask Our Financial Planners how you can pay for this with no out of pocket expense. This strategy is essential to any home or investment property purchase.

 

Please allow for miscellaneous costs such as immediate repairs required to your property.

 

This is a general guideline of costs; please consult our Financial planners for exact dollar amounts of each of these items and others that may be specific to you.

 


Property in your SMSF - Beware

SMSF and property investments: This is NOT for everyone. Although many property spruikers stand before you and sell the concept that everyone must buy a property in your SMSF. Birchcorp is here to say that there is much time and effort required for an investor to decide to embark on this complicated arrangement. Although Birchcorp is happy to say the process is as easy as 1,2,3... it is not a process that should be taken lightly. We are professionals and have processed these SMSF establishments and ongoing services many times. A complacent trustee can easily com... Read More

Insurance

Birchcorp can show you how you may purchase your Insurance with no out of pocket expense.

Unlike other Financial Planning firms, Birchcorp is happy to show you how and why you can decrease your Insurance coverage... Read More

© Birchcorp 2017. -- All Rights Reserved

Birchcorp Pty Ltd ABN 56 132 775 654 is a Corporate Authorised Representative (No. 339299)
of Dover Financial Advisers Pty Ltd ABN 87 112 139321, which is the holder of an AFSL No. 307248. Birchcorp Pty Ltd is an Accredited Member of the FBAA with an ACL No. 376718.