Buying a new home requires a lot of projected estimations and planning. However, take the asking price associated with the “homes for sale” tag on real estate listings at just the surface value. You might overlook many other veiled costs.
GST – The goods and services tax is applicable on the sale of any goods or services within the country. If your prospective home has recently been extensively renovated, you will have to pay the GST. You might be eligible for a rebate though, if you are intending this new home as your primary choice of residence.
Land transfer tax – This is also known as property purchase tax. It is calculated on a multi-tiered system, so you will need a professional to help you calculate the exact amount based on your state, and properly valuation.
Legal fees – Your lawyer will help you with reviews of the terms of the transaction, title search, new title register and plan out the adjustment costs for your transaction. The legal fees should be estimated anywhere in the range of $1500-$3000.
Service hook ups – Before you can move in to the home, you will also need to plan for all services and utilities to be hooked up within the home. The service charges for these hooks- up will run up to a couple hundred dollars for you.
Common area maintenance fees – If you are buying in to a gated community or town house, you will need to pay a monthly fee for the common area maintenance.
Appraisals and inspections
Never buy a home without a proper home inspection. Of course, the fees for the professionals should be within your estimated calculations. You should also plan for water inspections before moving into an area, which gets its water from a well. The Lender for your mortgage might ask for a property appraisal and a property survey for the measurement of various boundaries. In both cases, there are associated costs.