Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
Property buyers in Australia often face unexpected costs that can add tens of thousands of dollars to their purchase budget.
These hidden expenses range from state-specific stamp duties and mandatory inspections to ongoing rates and insurance premiums that vary dramatically across different regions. Understanding these costs upfront helps buyers avoid financial surprises and budget accurately for their Australian property investment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Property buyers in Australia typically face hidden costs totaling 5-8% of the purchase price beyond the deposit. Stamp duty alone can cost $30,000-50,000 on a typical $800,000 property, while conveyancing, inspections, and lender fees add another $3,000-8,000 to the upfront budget.
| Cost Category | Typical Range | When Due |
|---|---|---|
| Stamp Duty | 2-7% of property value | Settlement |
| Conveyancing & Legal | $700-$4,500 | Settlement |
| Building & Pest Inspections | $500-$550 combined | Pre-purchase |
| Loan Application Fees | $150-$750 | Application |
| LMI (if deposit <20%) | 1-5% of loan value | Settlement |
| Council Rates & Utilities | $1,500-$5,000/year | Ongoing from settlement |
| Home Insurance | $1,100-$1,700/year | Ongoing from settlement |
How much should I budget for stamp duty in the state I'm buying in?
Stamp duty costs vary dramatically across Australian states and represent one of the largest hidden expenses for property buyers.
As of September 2025, you should budget between 2-7% of your property's purchase price for stamp duty, depending on your state and the property value. New South Wales and Victoria typically charge the highest rates, while states like Western Australia offer more generous first-home buyer concessions.
For a $800,000 property, expect to pay approximately $34,000-$42,000 in stamp duty in most states. However, first-home buyers may qualify for significant reductions or exemptions in certain price ranges.
Queensland charges around 3.5% for properties over $540,000, while Victoria applies rates up to 5.5% for expensive properties. Western Australia offers no stamp duty for first-home buyers on properties up to $500,000, making it particularly attractive for new buyers.
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What are the typical conveyancing and legal fees I'll need to pay?
Conveyancing fees in Australia range from $700 to $4,500, with metropolitan areas commanding premium pricing for legal services.
Standard residential conveyancing in regional areas typically costs $700-$1,500, while Sydney and Melbourne lawyers often charge $2,000-$4,500 for the same service. These fees cover contract review, property searches, settlement coordination, and legal representation.
The total cost includes professional fees ($500-$3,000) plus disbursements ($200-$1,500) for searches, registration fees, and administrative costs. Complex transactions involving strata properties, subdivisions, or commercial elements increase fees significantly.
Many conveyancers offer fixed-fee packages, but additional services like urgent settlements, contract variations, or extended settlement periods incur extra charges.
How much will building and pest inspections usually cost me in Australia?
Building and pest inspections are mandatory in most Australian property transactions and cost between $500-$550 for combined reports.
Individual building inspections range from $200-$500 depending on property size and complexity, while pest inspections cost $150-$300. Most buyers opt for combined inspection packages that offer better value and streamlined reporting.
Larger properties, heritage buildings, or homes with complex structural features may cost up to $800-$1,000 for comprehensive inspection services. Regional properties often cost less due to lower overhead costs for inspection companies.
These inspections can reveal costly issues that affect your negotiating position or prompt you to withdraw from the purchase, making them essential despite the upfront cost.
What kind of loan application or mortgage registration fees do banks charge?
Australian banks charge loan application fees ranging from $150-$750, with mortgage registration fees adding another $100-$150 to your upfront costs.
Major banks like Commonwealth Bank, ANZ, Westpac, and NAB typically charge $200-$600 for application processing, while smaller lenders and brokers may charge up to $750. Some lenders waive application fees during promotional periods or for high-value customers.
Mortgage registration fees are state government charges that vary by jurisdiction but typically fall between $100-$150. These fees register your mortgage on the property title and are unavoidable regardless of your lender.
Additional lender fees may include valuation ordering fees ($50-$200), documentation fees ($200-$500), and settlement booking fees ($150-$300).
How much should I expect to pay for a property valuation report?
Property valuations in Australia cost between $300-$600 for standard residential properties, with complex or high-value properties requiring more expensive assessments.
Bank-ordered valuations for loan approval typically cost $300-$450 and are often added to your loan amount rather than paid upfront. Independent valuations for investment analysis or pre-purchase assessment cost $400-$600.
Commercial properties, rural land, or unique residential properties can cost $800-$1,500 for detailed valuation reports. Metropolitan properties generally cost more than regional equivalents due to higher valuer fees and travel costs.
Some lenders include valuation costs in their loan packages, while others charge separately at application or settlement.
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What are the common lender's mortgage insurance (LMI) costs if I have less than a 20% deposit?
Lender's Mortgage Insurance costs between 1-5% of your loan amount when borrowing more than 80% of the property value, representing a significant hidden expense for buyers with smaller deposits.
| Deposit Size | LMI Cost (% of loan) | Example Cost ($600k loan) |
|---|---|---|
| 15% deposit | 1.8-2.2% | $10,800-$13,200 |
| 10% deposit | 3.0-4.0% | $18,000-$24,000 |
| 5% deposit | 4.0-5.0% | $24,000-$30,000 |
| 5% (First Home Guarantee) | 0% | $0 |
LMI premiums vary between lenders and can be paid upfront or added to your loan amount. First-home buyers may access government guarantee schemes that eliminate LMI requirements, but these programs have strict eligibility criteria and property price caps.
The insurance protects the lender, not the borrower, making it purely an additional cost without direct benefit to the property owner.
How much will I need upfront for council rates, water rates, and strata levies at settlement?
Council rates, water rates, and strata levies require pro-rata payments at settlement, typically costing $1,500-$5,000 depending on the property type and location.
Council rates average $1,200-$2,500 annually across Australia, with premium locations and larger properties attracting higher charges. Water and waste services cost $250-$600 per year in most areas, though some states include these in council rates.
Apartment buyers face additional strata levies ranging from $500-$3,000 annually, covering building maintenance, insurance, and common area upkeep. Luxury apartment complexes with pools, gyms, and concierge services charge significantly higher levies.
At settlement, you'll pay the seller's portion of these rates from the settlement date to the end of the rating period, which can represent several months of charges.
What ongoing home insurance costs should I factor in right from the start?
Home insurance in Australia averages $1,460 annually but varies significantly by state, with Queensland properties costing around $1,700 per year and Tasmanian properties averaging $1,100.
Northern Australian properties face higher premiums due to cyclone risk, while bushfire-prone areas in Victoria, New South Wales, and South Australia also attract premium pricing. Inner-city apartments typically cost less to insure than standalone houses.
Contents insurance adds another $200-$600 annually, while landlord insurance for investment properties costs $300-$800 per year depending on coverage levels. Strata properties often include building insurance in their levies, reducing individual insurance costs.
Insurance must be active from settlement day, making it an immediate ongoing cost that many buyers underestimate in their budgeting.
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What are the average moving costs, including hiring removalists, in Australian cities?
Moving costs in Australia range from $300-$6,000 depending on distance, property size, and timing, with interstate moves significantly more expensive than local relocations.
Local moves within the same city cost $300-$3,500, while interstate removals range from $1,500-$6,000 for standard household contents. Backloading services can reduce interstate costs by 40-50% but require flexible timing.
Three-bedroom houses typically cost $1,200-$2,500 for local moves and $3,000-$5,000 for interstate relocations. Additional services like packing, storage, or piano moving increase costs substantially.
Peak moving periods (December-February and end-of-month dates) command premium pricing, while mid-week and off-season moves offer better rates.
It's something we develop in our Australia property pack.
How much should I set aside for connecting utilities like electricity, gas, internet, and water?
Utility connection costs in Australia range from $12-$250 per service, with electricity and gas connections being the most expensive components.
Electricity connection fees vary by state from $12 in South Australia to $112 in New South Wales for standard residential connections. Gas connections typically cost $50-$150, depending on existing infrastructure and provider requirements.
Internet setup costs $0-$250 depending on your provider and connection type, with fiber-to-the-premises often requiring higher establishment fees than ADSL or cable connections. Some providers waive setup fees during promotional periods.
Water services are usually included in council rates and don't require separate connection fees for established properties, though new connections or reconnections after extended vacancy may incur charges.
What renovations, repairs, or immediate upgrades do most new buyers in Australia face after moving in?
New property owners in Australia typically spend $2,000-$8,000 on immediate repairs and basic upgrades, with major renovations costing $10,000-$45,000 depending on scope and location.
Common immediate expenses include painting ($1,500-$4,000), carpet replacement ($2,000-$6,000), and minor electrical or plumbing repairs ($500-$2,500). Older properties often require urgent fixes for safety or functionality issues discovered after settlement.
Kitchen renovations cost $10,000-$45,000, while bathroom updates range from $8,000-$25,000 for quality finishes. Many buyers underestimate these costs when budgeting for their property purchase.
Regional properties may require additional upgrades for city living standards, while metropolitan properties often need modernization to compete with newer developments for rental or resale value.
How much of a buffer should I realistically keep aside for unexpected costs after settlement?
Property experts recommend maintaining a buffer of $5,000-$20,000 or at least 2% of the purchase price for unexpected costs after settlement in Australia.
This buffer covers urgent repairs, appliance breakdowns, rate adjustments, insurance claims excesses, and other unforeseen expenses that commonly arise in the first year of ownership. Older properties typically require larger buffers due to higher maintenance risks.
Investment properties need additional buffers for vacancy periods, tenant damages, and property management costs that exceed initial estimates. Strata properties may face special levies for building repairs or upgrades that weren't disclosed at purchase.
Regional properties often require larger buffers due to limited contractor availability and higher service costs, while metropolitan properties benefit from competitive pricing but face higher overall cost levels.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding these hidden costs helps Australian property buyers budget accurately and avoid financial surprises during their purchase journey.
Smart buyers factor these expenses into their initial budget calculations rather than discovering them during the settlement process when options become limited.
Sources
- Odin Mortgage - Stamp Duty Calculator Australia
- Newcastle Conveyancing Services - 2025 Price Guide
- hipages - Pest Inspection Costs
- hipages - Building Inspection Costs
- Cockatoo Finance - Loan Application Fees
- Money.com.au - Home Loan Fees
- Quantum QS - Property Valuation Costs 2025
- Money.com.au - Lenders Mortgage Insurance
- Mozo - Best Home Insurance
- Kent Removals - Moving Costs Australia 2025