How much does it cost to move into your first home?

Knowing the costs involved can help you plan ahead

Taking that first crucial step on the property ladder is about more than managing home loan repayments. Buying your first home also comes with other costs. Below are some of the main ones you should look to budget for.

Purchase costs

Along with a deposit, several upfront expenses are likely to apply when you purchase your first home.

Stamp duty

Stamp duty, also known as transfer duty, is a one-off, state-based tax so it varies according to the state or territory where you buy. Stamp duty is calculated based on the price you pay for your home. The good news for first-time home buyers is that — in addition to the First Homeowner Grant — you may be entitled to valuable savings on stamp duty in some states. Look at FND’s stamp duty calculator to know how much you will pay on your first home. Some lenders will let first home buyers borrow money to cover the cost of stamp duty. If this sounds like you, it might be a clever idea to talk through options with your local FND Broker.

Conveyancer or solicitor fees

When you buy your first home, the property will need to be formally transferred into your name. This process is known as ‘conveyancing’ and calls for some legal expertise.Just like reviewing the contract of sale before you sign it, you might want to think about paying a conveyancer or a solicitor to do this for you — the peace of mind can be worth the expense. Conveyancing costs can vary, so think about shopping around and enquire about the fee before you commit to using a particular conveyancing firm or solicitor.

Pest and building inspections

The last thing you need is to buy a home with dodgy building work or a serious pest problem. In addition to doing your own inspections before purchasing a home, you should organise a professional pre-purchase pest and building inspection.To find a service near you, search for “pest and building inspections”, seek reviews and contact a couple of providers to compare prices.

Mortgage protection insurance

Your first home is likely to be your biggest financial asset, so it is worth protecting your ability to keep up with loan repayments through mortgage protection insurance. This covers your ability to meet your loan repayments if you get sick or lose your job.

Moving costs

Moving from one address to another can involve several costs that are easy to forget about — even redirecting mail to your new address costs your money. Here are a few other costs you shouldn’t forget to add to your expense list.

Removalist costs

You’re going to need help moving all your stuff into your new home, whether you have just the barebones or a full home worth of furniture. The cost of moving can range from hiring a DIY Ute, to paying for a professional removalist service. Have a good look at what you have, how much you need and what you can do yourself when budgeting for removal. It can also help to compare prices between a few removalists to help get a good deal.

Connection or disconnection of utilities

Having your power, gas and internet services connected on the day you move makes settling in a breeze. Remember, electricity charges can be based on your home's location, so this could be an opportunity to select a new plan and potentially save on power bills.

Adding it all up

Once you have a list of all the costs associated with buying your first home, you have a better idea of how much to set aside to start living comfortably in your new place. The good news is, your local FND Broker understands the home buying process and can help answer your questions. In the meantime, you can check out FND’s budget planner to see if you have enough income to cover the cost of moving, plus, see where you can save some extra cash.