Average home prices are predicted to rise by $9,000 next year. Read on to learn how much does it cost to buy a house in 2020 here.
First-time Australian home buyers have accounted for 25% to 30% of all home sales over the past decade. 90% of first-time buyers obtain a mortgage to buy their home.
Buying your first home is stressful. There’s a lot to learn so that you end up with a home you both love and can afford.
One of the first things you need to find out before you go house hunting is how much does it cost to buy the type of home you want. And you also have to be aware of the many costs associated with buying a home.
We want to help you make a smart investment. Keep reading to learn the costs of buying a home in 2020.
How Much Does it Cost to Buy a Home?
When you’re in the market to buy a house, how much it costs depends on several factors including:
- Geographical location
- Condition of the home
- Type of home
Most homes are detached with gardens. If you choose to live in the country, the price will be lower.
Average Price of Homes in Major Australian Cities
In the major cities, prices for homes are more expensive. The least expensive city to buy a home in is Hobard, Tasmania where the average price is $450,000.
The most expensive city to buy a home in is Sydney where the average price of homes cost $955,000.
Thanks to interest rate cuts from the Federal Reserve in 2019 and more cuts expected in 2020, the home buying market is expecting a revival. Analysts are expecting the average price of a home to rise by 5.0% nationally in 2020.
Other Home-Buying Costs to Consider
But there are other costs associated with buying a home that every home buyer must consider such as:
- Conveyancing and legal fees
- Building and pest inspection
- Mortgage registration fee
- Transfer fee ($35 for every $10,000 over $180,000)
- Loan application fee
- Mortgage insurance
- Council and utility rates
If you purchase a home valued at $500,000, with the additional costs, you’ll be paying an additional amount ranging from $12,000 to $21,000.
Don’t Skimp to Save
While you could buy your home without the help of a solicitor, it’s not a good idea, especially if you’re a first-time buyer.
What you don’t know could end up costing you a lot more money.
There’s Good News for First-Time Buyers
Normally, there’s a stamp duty that’s also tacked on to buying a home. However, if you’re a first-time buyer, that fee is waived.
There is also a first home owners grant available. For those who are eligible for it, they can get up to $15,000 to put towards their first home.
Financially Educate Yourself
How much does it cost to buy a home? It’s not a small chunk of change.
But a home is an investment and with prices expected to rise in the near future, it’s a good idea to buy now. It’s also important to educate yourself on financial matters.
We can help you to become financially literate. We can even help you find that dream job to help you afford your new home. Keep coming back to see what’s new.