Property Buying Costs in Australia Explained

The purchase price is just the beginning. Most buyers in Australia underestimate how much extra they need on top of the property price — and getting caught short at settlement is a stress nobody needs.

Stamp Duty

Stamp duty (or transfer duty) is typically the biggest additional cost. It is a state government tax calculated as a percentage of the property price, and it varies significantly between states and territories.

For a $600,000 property, stamp duty can range from around $15,000 to over $25,000 depending on your state. First home buyers may qualify for concessions or exemptions — check our stamp duty guide for state-by-state details.

Some states now offer the option to pay an annual land tax instead of upfront stamp duty, which can make it easier for buyers with limited savings.

Conveyancing and Legal Fees

A conveyancer or solicitor handles the legal transfer of ownership. They review the contract, conduct title searches, liaise with your lender, and manage the settlement process.

Expect to pay between $1,500 and $3,000 for conveyancing, depending on the complexity of the transaction and your location. This is not a cost to skip — a good conveyancer can identify problems with the contract that could save you far more than their fee.

Building and Pest Inspections

A building inspection checks the structural integrity of the property, while a pest inspection looks for termite damage and other infestations. Together, they typically cost $400 to $800.

These inspections are essential, especially for older properties. Finding structural issues or termite damage before you buy can save you tens of thousands in repairs — or help you negotiate a lower price. Our property inspection checklist covers what to look for.

Lenders Mortgage Insurance (LMI)

If your deposit is less than 20% of the property price, your lender will likely require Lenders Mortgage Insurance. LMI protects the lender if you default — not you.

The cost depends on your loan-to-value ratio and the loan amount. For a $500,000 loan with a 10% deposit, LMI could be $8,000 to $12,000. It can be paid upfront or added to your loan balance. Read our mortgage guide for strategies to avoid LMI.

Loan Application and Establishment Fees

Some lenders charge application or establishment fees to set up your mortgage. These can range from $0 (many lenders have dropped this fee) to $600. Always check if the fee can be waived — many lenders will waive it if you ask, especially through a broker.

Ongoing fees like monthly or annual account keeping fees are also worth checking. A loan with a slightly higher rate but no ongoing fees may cost less over time than one with a low rate and $400 in annual fees.

Moving Costs

The practical cost of actually relocating is easy to overlook when budgeting. Professional removalists typically charge $500 to $2,000 depending on the distance and volume. If you are moving interstate, expect $3,000 to $5,000 or more.

Budget also for mail redirection ($152 for 12 months through Australia Post), utility connections, and any immediate repairs or maintenance the property needs.

Strata Reports (Apartments and Townhouses)

If you are buying a strata property (apartment, townhouse, or unit), you should get a strata inspection report. This reviews the body corporate’s financial health, planned works, and any disputes. It typically costs $200 to $350.

A strata report can reveal upcoming special levies (one-off charges for major repairs) that could cost thousands, so this is money well spent.

Council and Water Rates

At settlement, you will usually reimburse the seller for any council and water rates they have prepaid beyond the settlement date. This is an adjustment rather than a new cost, but it can be a few hundred to a few thousand dollars depending on timing.

Total Additional Costs — A Rough Guide

For a $600,000 property purchase, budget approximately $25,000 to $40,000 in additional costs beyond the purchase price. This breaks down to roughly 4-7% of the property price.

If you are a first home buyer with stamp duty concessions and no LMI (through a government scheme), your additional costs could be as low as $5,000 to $10,000.

Use our mortgage calculator to model your total costs and see how they affect your repayments.

How to Prepare

Start by saving more than you think you need. A buffer of $5,000 to $10,000 above your expected costs gives you breathing room for surprises. Get quotes for conveyancing, inspections, and moving early so there are no shocks.

For a complete walkthrough of the entire process, see our property buying guide, or check our FAQs for quick answers.