The cost of buying a new home in Queensland
Transfer Duty in Queensland
Stamp Duty, known as Transfer Duty in Queensland, is calculated based on the value of the property and the purpose of the property. If you’re buying your first home, you’ll avoid transfer duty altogether, which is a sizeable saving. This will only apply to your first home, not to vacant land on which to build your first home. Buying an investment property in QLD attracts a far higher percentage of transfer duty and if you’re a foreign national, additional fees apply.
Conveyancing and Legal Fees in Queensland
If your property purchase is fairly straight forward, you can expect to pay in the ballpark of $1200 – $2000 in legal and conveyancing fees in Queensland. There are plenty of “low cost” conveyancing firms operating in Queensland; however, it pays to check if your conveyancer will go the extra mile and procure information on the legality of renovations and other improvements
Lender Mortgage Fees and Insurances
Every lender will have its own set of “hidden fees” and it really pays to shop around. Application fees will generally start at about $500. Some forego the establishment fee but charge an annual fee of hundreds, if not thousands of dollars to keep you on the lowest interest rate.
Mortgage Registration and Transfer Fees
In Queensland your mortgage registration fee is $187. The transfer fees are calculated on the value and purpose of the property. The current transfer duty levels for Queensland can be found here. Note that foreign nationals will attract an extra 7% levy.
Home and Contents Insurance
You will be required to insure the property from the day you sign the contract on the home. This is BEFORE settlement happens. While it’s technically not a legal requirement, your lender will insist that the property is fully insured from the moment the ink dries on the contract. If the property is subject to building and pest and the contract falls over, you’ll need to cancel the insurance as you withdraw from the purchase.
Building and Pest Insurance
Queensland’s abundance of building challenges and pests means an abundance of building and pest inspectors. Inspections vary greatly in price and quality. Cheap and cheerful building and pest inspections start at about $500 and give a basic overview of the state of the property. They tend to contain watertight terms and conditions so if they miss something, you’re on your own. Unlike built up urban areas in central Sydney and Melbourne, Brisbane is regularly subjected to floods, fires and cockroaches of the gigantic flying variety. Queensland’s humidity and dryness, drought and floods (often all in the same year) makes your building and pest inspection a higher priority than it may be in other locations.
