What buying property actually costs.
Stamp duty, transfer fees and government charges, which catch more first home buyers out than anything else on this page. Rates and concessions differ by state and by buyer type, so set the state before you read the number.
Most people budget for the deposit and the stamp duty, then get blindsided by the rest. Here's what else turns up between signing and settlement.
-
The big one, and the one everyone knows about. It's a state tax on the transfer of property, calculated on the purchase price, and it's payable within weeks of settlement rather than at some comfortable point later.
Two things people underestimate. It's not a flat rate, it's tiered, so it climbs faster than the purchase price does. And the concessions vary enormously by state and by who you are. First home buyers get exemptions or discounts in most states up to a price threshold, and once you're a dollar over that threshold the concession can disappear entirely rather than taper.
If you're buying an investment property, buying as a company or trust, or you're not an Australian resident, expect it to be higher again. Foreign purchaser surcharges apply in every state and they're substantial.
The calculator above will get you close. Your conveyancer will give you the exact figure once there's a contract, and that's the number to budget against.
-
If your deposit is under 20%, you'll likely pay LMI which protects the lender rather than you. It can often be capitalised into the loan, which spreads the cost but means you pay interest on it for thirty years.
-
Typically $1,500 to $3,000 depending on the state and the complexity of the title.
-
Around $800. Skipping it to save that is the most expensive economy in property.
-
Varies widely by lender, from nothing to around $800. Sometimes waived, which is worth asking about.
-
You reimburse the seller for the portion of the period they've already paid. Usually a few hundred dollars, and it appears on the settlement statement with no warning.
-
Not part of the purchase, but it lands in the same fortnight. Budget more than you think.
-
On top of your deposit, allow around 5% of the purchase price for a standard purchase with a 20% deposit. Under 20% deposit, allow more, because LMI dominates. It's a blunt number and it's better than being surprised.
-
If you're buying and selling, you'll pay agent commission on the sale. That's a separate cost from everything above and it's often the largest single number in the transaction, and your agent will be able to tell you what the commission amount is.
Let's build something big.
Start with a conversation. No obligation, and worst case you leave with a clear picture of where you stand.