Buying property is very confusing, especially when doing it for the first time.  Here are the potential costs you need to consider:

1. Duty: often called "stamp duty" or transfer duty is the tax the local State Government levies on the purchase of a new property.  This is often exempt or reduced for first buyers, if the property is in WA you can obtain an estimate by using the Office of State Revenue (OSR) online calculator.
2. Settlement agent: you will need to appoint a settlement agent to attend to settlement, ensure you get a good one, we have a couple of options we are happy to refer you to. You are always welcome to request quotes and compare them. After the purchase settles, you will be provided with a final settlement statement including the details of other minor costs like title searches, etc.
3. Loan application fees: these are often added to the loan at settlement and do not need to be paid upfront.  However, your mortgage must include these in their assessment of your loan needs and provide them to you when discussing the suitability of the loan. Confused?  Contact us we have our own full loan license and can access hundreds of options through our system.
4. Lenders Mortgage Insurance (LMI): this is the insurance the lender is required to take out if your loan to value ratio (LVR) exceeds 80%.  LMI protects the bank, not you, and they get paid out if you default on the loan and there is a shortfall when the property is sold. There is absolutely no benefit or payout to the owner, it is purely to ensure the bank gets paid.  Read how to work out your LVR here.

There are a number of Government incentives currently to assist, but be aware these are for new constructions or for buying off the plan, read more here.  Remember if you are buying to invest the name you buy the property in is very important, contact us to discuss the options as part of a review of your current business and investment structure - read more about our Business structure review service.