Costs guide

What buying actually costs, line by line

The headline price on the listing is roughly half the story. By the time you've paid stamp duty, your conveyancer, your lender's mortgage insurance, your building inspector, and the first three months of strata levies, the real cost of buying is typically 5% to 7% above the contract price. For a $900,000 purchase in NSW that's another $45,000 to $63,000 that has to come from somewhere.

This guide walks every line item: the upfront costs you pay at exchange, the ongoing costs that hit every quarter, and the calculators that let you model your specific scenario before you commit. Every state has different rates, and the difference between a first home buyer threshold met by $1,000 and missed by $1,000 is often more than $30,000 in stamp duty.

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Stamp duty, the biggest single cost

Stamp duty is the largest tax most buyers pay in their lifetime, and the rate schedule varies dramatically by state. NSW charges roughly $40,000 on a $1m purchase. Victoria is closer to $55,000. Queensland is around $30,000 for the same property. First home buyer exemptions and concessions reduce this significantly in most states, but only if you stay under the price cap. Use the calculator to see your exact number before you make an offer.

Mortgage, repayments, and borrowing power

Most Australian buyers borrow 80% to 95% of the purchase price. The repayment is calculated against the loan amount, the rate, and the term. A $700,000 loan at 6% over 30 years is around $4,200 per month. Add lenders' mortgage insurance if your deposit is under 20%, application fees, and ongoing account fees, and the true cost of finance shows up. Knowing your borrowing capacity before you start inspecting saves you from falling in love with a property your bank won't lend you on.

Saving the deposit, including FHSSS

Most Australian lenders want a 20% deposit to avoid lenders' mortgage insurance, though loans up to 95% LVR are available with LMI added. First home buyers can use the First Home Super Saver Scheme to save voluntary super contributions toward a deposit, with tax advantages that compound over a few years. Most buyers save the deposit over 3 to 7 years, which means the property goal has to fit the savings curve.

Land tax, an investor's silent cost

Land tax is paid annually by property investors (and in some states owner-occupiers above a threshold) to the state. The amount depends on the total unimproved land value of your holdings in that state. Some investors are surprised by their first land tax bill. The bigger the portfolio, the bigger the bill, and the bill scales steeply. Plan for it before you buy your second property.

Ongoing holding costs

The mortgage is only one recurring cost. Council rates, water charges, insurance, maintenance, strata levies, property management, land tax, and vacancy can materially change the annual budget. Model them before exchange and keep a cash buffer for costs that arrive quarterly or unexpectedly.

Conveyancer, inspectors, and other upfront fees

Beyond duty and finance costs, a purchase may involve legal or conveyancing work, building and pest inspections, lender charges and, for strata property, a strata-records report. Fees and scope vary by provider, property, sale method and jurisdiction. Obtain written, itemised quotes and confirm what is included rather than relying on a generic national price range.

Calculate your true cost before you bid

Run the numbers on stamp duty, repayments, and borrowing power in a few minutes. Free calculators for every state.

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