{"id":39629,"date":"2022-07-18T18:58:48","date_gmt":"2022-07-18T06:58:48","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39629"},"modified":"2022-07-18T18:58:48","modified_gmt":"2022-07-18T06:58:48","slug":"nasty-15k-fee-blindsiding-homebuyers","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/nasty-15k-fee-blindsiding-homebuyers\/","title":{"rendered":"Nasty $15k fee blindsiding homebuyers"},"content":{"rendered":"

PHOTO: First homebuyers. FILE<\/strong><\/p>\n

After two-and-a-half years of frustration one couple finally bought their first home<\/a>, but they were shocked by the hidden fees.<\/p>\n

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For Toni and James, purchasing property was an essential financial investment.<\/p>\n<\/div>\n

But in reality the process was far more difficult, and a whole lot more expensive than expected, discovering a number of hidden fees along the way that nobody had warned them about.<\/p>\n

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NSW Budget to give first home buyers the option to avoid lump sum stamp duty<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cIt took us about two-and-a-half years to purchase a property,\u201d Toni told news.com.au.<\/p>\n

\u201cOur initial plan was to save for 12 months, but due to Covid and the housing market spiking as we were about to purchase, demand went up and supply went down.\u201d<\/p>\n

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Despite trying to keep a positive attitude and using the extra time to increase their deposit for their future home in Adelaide\u2019s western suburbs, Toni said the wait was \u201calmost counter-productive\u201d.<\/p>\n

\u201cThe house prices continued to rise no matter how much more we saved. It always felt like we were in the same position,\u201d she said.<\/p>\n

\u2018No one talks about it\u2019: $15,000 fee shock<\/b><\/span><\/p>\n

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Major change for first home buyers<\/a><\/h2>\n<\/header>\n<\/div>\n

Right when the couple was about to give up, they finally got lucky. They purchased their first home for just under $400,000, with a $70,000 deposit and another $10,000 they had saved for moving costs such as furniture and removalists.<\/p>\n

Although they\u2019d been saving carefully for the day they finally secured a property, they were shocked by the amount they needed to spend on fees.<\/p>\n

\u201cWhen people say you need a 20 per cent deposit, that\u2019s not inclusive of fees such as stamp duty \u2014 they can be upwards of $15,000,\u201d said Toni.<\/p>\n

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She couldn\u2019t understand why no one talks about how much needs to be paid on top of a deposit.<\/p>\n

While the couple were able to save the money on their own by cutting down on social activities, they were also lucky enough to be able to live with James\u2019 parents rent free after James made an industry change that had him working as an apprentice once again.<\/p>\n

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\u201cWe didn\u2019t pay rent for that period, but did have bills \u2026 and additional travel costs for me,\u201d explained Toni.<\/p>\n

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Toni and James in front of their first home. Picture: supplied<\/strong><\/em><\/div>\n

Thanks to about $2000 in lenders\u2019 mortgage insurance fees they hadn\u2019t budgeted for, they were just under their goal of a 20 per cent deposit, plus fees deposit. Still, they felt lucky to find a seller who took pity on them.<\/p>\n

\u201cWe were lucky that we had purchased it off a flipper that carved a section of the block and made his money selling the land \u2014 they wanted the house to go to a young couple,\u201d says Toni.<\/p>\n

Ditching the brokers<\/b><\/span><\/p>\n

The couple started their journey looking for help from banks and brokers, Toni says they ultimately decided it was worth the extra effort to go it alone.<\/p>\n

\u201cI spoke to three banks and two brokers who I didn\u2019t find particularly helpful or weren\u2019t the right fit,\u201d she explained. \u201cI decided to take the lead.\u201d<\/p>\n

\u201cI did my own research to find the best bank and home loan for us,\u201d she continued. \u201cI looked at different government grants, compared South Australia\u2019s stamp duty fees with other states \u2014 I even wrote a letter to the state Treasurer pushing for changes on stamp duty costs for SA first-home buyers to match other states (unsuccessfully).\u201d<\/p>\n

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Eventually, her research paid off when she found a bank that not only helped guide the couple, it had the perfect loan and low interest rate specifically for first-home buyers to fit their needs.<\/p>\n

\u201cAs stressful as it was, I learnt so much and have since advised many of our friends who were looking to enter the market,\u201d she said.<\/p>\n

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The whole family enjoying their own home. Picture: supplied<\/strong><\/em><\/div>\n

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