Only looking at the asking price?
At an open home, the advertised price is the most visible number. It is not the full cash requirement. A buyer may also pay transaction and inspection costs, then face insurance, regular ownership expenses and necessary repairs after moving in.
Moneysmart is an Australian Government website provided by ASIC. Its buying-a-house guide recommends factoring in property checks, state-based transfer duty, insurance and ongoing costs. Actual amounts and timing depend on the state, property and contract; do not use a generic percentage as a quote.
Separate the cash into three groups
First, buying costs: deposit, applicable state-based transfer charges, conveyancing or legal work, and building or pest checks. Second, holding costs: insurance, council rates and other ongoing ownership expenses. Third, the money to retain after moving: essential repairs identified by a qualified inspection and a reserve for unexpected bills.
A building or pest inspection can inform your understanding of physical condition, but it does not replace legal advice. A conveyancer or solicitor should review contract terms and responsibilities. Do not assume a mortgage pre-approval covers every cost or that a repair estimate is known before inspection.
Write the three numbers before making an offer
Write down your maximum offer, the cash required to buy, and the amount you will retain after settlement. Check when each cost falls due. If the property needs work, seek an appropriate professional estimate before treating your remaining cash as available for other spending.
The highest price a lender might finance is not automatically your comfortable bid. Your personal budget, loan conditions, contract, inspections and retained cash all matter.
Keep each professional in the right role
BV Finance can help discuss lending options and household cash flow. Qualified property inspectors assess the building, while a conveyancer or solicitor checks contract and legal matters. The right amount to retain depends on your circumstances.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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