The Cost of Buying a Property in Australia: Hidden Fees to Watch For

Buying a property in Australia is an exciting yet challenging journey, but it can also come with a few surprises, especially regarding costs. While most buyers factor in the purchase price and stamp duty, there are other hidden costs of buying a home that can easily catch you off guard if you’re not aware of them in the first place. 

At U Buyers Agents, we believe in total transparency and attempt to deliver the best results to you. That’s why we’re breaking down the home-buying hidden costs you need to know about—so you’re prepared, not panicked when they’re coming.

1. Stamp Duty and Legal Fees

Stamp duty can be a major upfront expense when buying a property in Australia, especially for first-home buyers, often tens of thousands of dollars, depending on the state. But don’t be discouraged at this point. Some states offer stamp duty concessions for eligible homebuyers; others, like Queensland, provide stamp duty exemptions to buyers who meet the criteria. So, make sure to explore your options before buying.

Also, be well-prepared to face legal fees for conveyancing, title searches, and contracts—all these can quickly add up, usually ranging from $1,200 to $2,500.

Consult with your local buyer’s agents to be better informed about this information. 

2. Building and Pest Inspections

Building and pest inspection fees are one of the most overlooked costs when buying a home, yet they are often necessary. These inspections usually cost between $300 and $800 or vary from state to state and differ between service providers. They may be pricey upfront, but they could save you thousands down the line by revealing existing or potential structural issues, pest infestations or other environmental issues before buying.

3. Loan Application and Lender Fees

If you’re financing your purchase, your lender may charge a range of fees, including:

• Loan application fees ($200–$600)

• Valuation fees ($200–$600)

• Mortgage registration and discharge fees ($100–$150 each)

These are some classic examples of home-buying hidden costs that sneak up on your budget when you least expect them. Ask about these fees while shopping for the best mortgage products or before signing the loan agreement with your chosen lender. 

4. Lenders’ Mortgage Insurance (LMI)

Buying with less than a 20% deposit? Be prepared to pay Lenders’ Mortgage Insurance, which can run into the thousands, depending on your loan size. It can be a big hit to the budget and a common hidden cost of buying a home in Australia. So, as you shop for lenders or explore your home loan options, look for ways to avoid LMI costs. If you’re working with a buyer’s agent, ask them to refer you to well-vetted mortgage brokers. 

5. Strata Fees (for Apartments & Townhouses)

When buying a property in Australia that’s part of a strata title, usually referring to a unit or townhouse, you’ll have to pay regular strata fees. These cover building maintenance, insurance, shared amenities and other fees, often amounting to $500 to $2,000+ per quarter. Consider these costs to determine whether a unit is worth your investment. 

6. Council Rates and Utility Connections

Once you own the home, you’ll need to pay local council rates (which can be upwards of $1,000 per year) plus utility connection fees for electricity, gas, internet, and water. So, make sure to include these costs in your monthly budget, whether you plan to live in the property or put it up for rent as part of your investment property portfolio.

7. Moving Costs and Immediate Repairs

Don’t forget the practical side of moving: truck hire, removalists, cleaning, and potentially some immediate repairs if necessary. This might seem minor and not so common, but it can become one of the costs of buying homes that add up quickly.

8. Ongoing Property Management Fees​

If you purchase an investment property, this is a key factor and a crucial fee to be aware of. Property management fees usually range from 5% to 10% of your weekly rent, depending on your agent and property location. While it may seem like a manageable and reasonable cost, these fees can impact your rental income without you noticing.

For example, if your property rents for $600 per week, and your agent charges 7%, that’s $42 per week—or nearly $2,200 per year. Add extra fees for advertising, lease renewals, or maintenance management, and it’s not going to be hard to see how property management fees can become a major factor in your investment strategy.

Get the Right Guidance

Knowing the hidden costs of buying a property in Australia can save you from financial strain and unwanted surprises. That’s why partnering with an experienced buyer’s agent who knows all these potential fees will ease your mind and benefit you in the long run.

At U Buyers Agents, we thoroughly guide our clients through every step—from identifying potential hidden home-buying costs and negotiating smarter deals to helping them make confident, informed decisions so they can own their dream homes with a better budget. Contact us today to consult with our specialists.