Budgeting a House Purchase Checklist

A house purchase has a lot of moving elements, a lot of hidden costs and a logistical setup well beyond what one person can easily handle. Here is a breakdown of the moving parts of a house purchase and an understanding of budgeting a house purchase. Hopefully this checklist gives you the big picture you need.


The People Involved in a House Sale:

Here is a little list of the core players in a house sale.

  1. The Vendor – the person who puts the property up for sale
  2. The Buyer – that is you, the person who desires the home
  3. The Competition – other buyers putting up offers for the same home
  4. The Real Estate Agent – the individual fronting the deal for the vendor
  5. The Conveyancer – the legal oversight for the house sale
  6. The Broker – the financial entity giving a loan to the buyer

Get a good grip on who these people are, what their roles are and what their motivations are.


The Costs Involved in Buying a House:

  1. House Price – the full price of the home in question
  2. The Deposit Price – The level of direct investment you have to make before entering the settlement period
  3. The Loan – a percentage of the house price fronted by a bank
  4. Loan application fees – cost of applying for a large loan
  5. Capital Investment – the remaining cost of the home you put up directly
  6. LMI – lenders mortgage insurance (if the loan is greater than 80%)
  7. Legal/Conveyancer Fees – cost of hiring a legal entity to check over paperwork
  8. Stamp Duty – tax on home purchases by the government
  9. Building inspections – depending on your state these may be included in the settlement price or fronted directly by the buyer
  10. Moving costs – the cost to move from one home to another


There are other costs, but these are the main ones to consider when purchasing a home. Budgeting a house purchase can be hard, and is something that required a good amount of effort and time to do effectively.


Budgeting a House Purchase Checklist:

  1. Get a grip on your own finances – understand how much capital you can put up, how much LMI costs if you need, how large a loan you can get (pre-approval) and how much you are willing to spend
  2. Once you have looked at properties in your price range, budget out the costs – using our data above and budgeting data available across the web (this article could help)
  3. Access a loan – once you have budgeted and negotiated, access a loan and begin the legal processing or settling
  4. Move in to your new home.


Hopefully this overview gives you a broader picture of the home purchase process. If you want to know more the below articles may help.

Home Buying Costs you Don’t Know About

Why Should I Get a Conveyancer?

The Steps to Buying a Property

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