What costs are involved in buying a house in Victoria?

What costs are involved in buying a house in Victoria?

In Victoria, stamp duty scales with the overall amount you pay for a piece of real estate. For property worth $300,000, stamp duty will be $12,361 – this includes mortgage fees of $114 and a $877 transfer fee. For a $600,000 home, stamp duty is significantly higher – $32,553 including the aforementioned fees.

How do you calculate money to buy a house?

To calculate ‘how much house can I afford,’ a good rule of thumb is using the 28%/36% rule, which states that you shouldn’t spend more than 28% of your gross monthly income on home-related costs and 36% on total debts, including your mortgage, credit cards and other loans like auto and student loans.

How much stamp duty do you pay on a house in Victoria?

Stamp duty in Victoria is calculated on the purchase price or the property’s value on the open market (whichever is greater). It is calculated on a sliding scale and starts at 1.4% if the property is valued at $25,000 and rises to 5.5% if the property is valued at or above $960,000.

What are my upfront costs?

Upfront costs are the fees you need to pay before or during the settlement of your new property. The biggest portion of this will be the deposit, which is generally around 20% of the total purchase price. Another upfront cost is stamp duty.

How much money do I need to buy a 600k house?

What income is required for a 600k mortgage? To afford a house that costs $600,000 with a 20 percent down payment (equal to $120,000), you will need to earn just under $90,000 per year before tax. The monthly mortgage payment would be approximately $2,089 in this scenario.

What is the stamp duty on a house?

The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a multiple home owner. Anyone purchasing an ‘additional’ residential property will be charged a 3% surcharge on each of the threshold bands.

Can I buy a house making 40k a year?

While buyers may still need to pay down debt, save up cash and qualify for a mortgage, the bottom line is that buying a home on a middle-class salary is still possible — in some places. Below, check out 15 cities where you can become a homeowner while earning $40,000 a year or less.

How much income do I need for a 300K mortgage?

How much do I need to make to buy a $300K house? To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, the type of home loan, loan term, and mortgage rate.

How much house can I afford 50k salary?

What you can afford: With a $50k annual salary, you’re earning $4,167 per month before tax. So, according to the 28/36 rule, you should spend no more than $1,167 on your mortgage payment per month, which is 28% of your monthly pre-tax income.