If a house is listed at $800,000, you'll need significantly more than $800,000 to buy it. The hidden costs of purchasing property in Australia can add anywhere from 3% to 7% on top of the purchase price, depending on the state, the property type, and the buyer's circumstances. Failing to budget for these costs is one of the most common — and most painful — mistakes first-home buyers make.
Stamp duty is typically the largest additional cost. In Victoria, on an $800,000 property, stamp duty for a non-first-home buyer is approximately $43,000. First home buyers are exempt or receive concessions under certain thresholds, but the rules differ by state. This single cost can derail an otherwise well-planned purchase if it hasn't been factored into your savings target from the start.
Conveyancing and legal fees generally range from $1,500 to $3,000. Your conveyancer or solicitor handles the legal transfer of the property, performs title searches, reviews the contract of sale, and coordinates with the vendor's representative. This is not an area to cut corners — a good conveyancer can identify issues in a contract that could cost you far more down the track.
Building and pest inspections are strongly recommended on established properties — typically $400 to $600 — and can reveal issues that either provide leverage for price negotiation or, in serious cases, prompt you to walk away altogether. Loan application fees, lender's valuation fees, mortgage registration fees, and council rate adjustments at settlement are further costs that accumulate quickly.
At Amber Finance, we build a complete cost summary for every client so there are no surprises on settlement day. We call it a 'survival fund' — a clear, comprehensive list of every cost you'll need to cover so you can walk into the purchase with complete confidence. Book a consultation and let us help you map out the full financial picture.