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Purchasing Costs in Queensland

Discussion in 'The Buying & Selling Process' started by Catalyst, 4th Oct, 2015.

  1. Catalyst

    Catalyst Well-Known Member

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    Folks,

    What estimates do you use when calculating purchase cost and cash flow to shortlist IPs?

    Budget range of IP: $400k - $550k

    Purchase and borrowing costs
    Stamp duty and transfer fee (available from http://www.realestate.com.au/blog/stamp-duty-calculator/)
    Legal fees
    Building and pest inspections

    Borrowing costs
    Mortgage registration fee (available from http://www.realestate.com.au/blog/stamp-duty-calculator/)
    LMI if borrowing 88% of $550k (just a ballpark. I'm sure it's different with the different lender)


    Running costs
    IO loan repayments (what's ballpark interest rate would you use, as the current rate will eventually increase)
    Rates & water per quarter
    Landlord insurance
    PM fees
    Letting fees
    Maintenance

    Have I missed anything? Would greatly appreciate some guidance here.

    Thank you.
     
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  2. MsAli

    MsAli Well-Known Member Premium Member

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    Hi @Catalyst - believe you have it covered with the costs.

    I typically put 4.5% for purchasing costs apart from deposit we are going to put in.

    For instance 20% deposit + 4.5% for purchasing costs. It works out within the ballpark, give or take 1k-2k
     
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  3. Catalyst

    Catalyst Well-Known Member

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    So you don't break down the costs when you're running numbers for the feasibility of a property, @MsAli ?

    What about the annual costs? What ballpark do you use?
     
  4. MsAli

    MsAli Well-Known Member Premium Member

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    Definitely breakdown. Also look at cashflow on a weekly, monthly, yearly basis.
     
  5. benk

    benk Member

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    Bought an IP recently and I had essentially the same. Another thing I also got though is a depreciation schedule which is a once off.
     
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  6. Catalyst

    Catalyst Well-Known Member

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    @benk Congrats! :) Where did you buy? Did you have face stiff competition in your purchase?

    What were the approximate amounts for each of the items?
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  8. JohnPropChat

    JohnPropChat Well-Known Member

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    I just found out that QLD has stamp duty concessions if it's owner occupied. Too bad WA doesn't.
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    Only for first home buyers in WA.
     
  10. EN710

    EN710 Well-Known Member

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  11. House

    House Well-Known Member Premium Member

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  12. benk

    benk Member

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    Thanks! I bought in Salisbury and there was only 1 other offer but I snagged the property right on the day of the first inspection. Probably paid a bit more than I wanted but I lost out a few times before this one so it most definitely affected my decision making.

    Figures below depend on what you want so are pretty rough:
    Legal fees - 1-2k
    B&P - 400-600
    Council and utility rates - 2-3k
    Insurance ~1k
    PM - ~8-9% of rent
    Letting fees - first week rent