What is a Buyer’s Portion?
The Last Cost Hurdle
Category: Pt 4: The Last Hurdle | Tags: Finance, Home, The Journey, Utilities, VP
The Buyer’s Portion are little payments that you’re responsible for. It’s important to keep track of them since some of the payments are required before you buy a home or much much later during your journey. It’s easy to forget about the later ones but let’s not leave any lost duckling behind.
The Buyer’s Portion can be split into two categories.
The first category is your differential sum, which is the amount difference between your loan approval and property price. This is done near the start so if you can’t recall how to calculate, check out the article on the differential sum here!
The second are miscellaneous charges that need to be paid when you’ve received your home during VP. It’s to get your home up and running! But, these charges will differ from your home’s land title.
- Electricity Deposit and Stamp Duty
- Water Deposit and Stamp Duty
- Maintenance (Depending on what facilities you have)
- Quit Rent and Assessment (A tax charge from the government for the land)
- For Strata Title Homes: Sinking fund, fire insurance, and stamp duty
The last charge in this stage would be the legal fees and stamp duty for the transfer of your new home to you! Refer back to the Stamp Duty article right here if you need a little refresher course.