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A question that I get asked often is “what is the upfront cost to purchase an investment property?”
Let’s break that down.
Let’s assume that you were going to purchase a property for 500K in Queensland with a 10% deposit towards the purchase price.
Here are the numbers:
Deposit: 50K
Stamp duty: 16K
Legal fees: 2K
Build and Pest: $600
Total = $68,600
Therefore, to buy a $500,000 property in Queensland you would need 69K as upfront savings this amount based on the state.
If you decide to use a buyer’s agent for the purchase this too would be an upfront cost.
Remember that while you incur LMI (lenders mortgage insurance) it would not be an upfront payment as it gets added on to your total loan.
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