There are several fees buyers need to be aware of, which aren’t necessarily spelled out in glossy real estate advertisements.
Upfront and hidden costs can add as much as $40,000 to the purchase price of a property, so it’s vital buyers understand them.
Almost all the costs depend on the value of the property being purchased and where it’s located. Different state and territory governments, in charge of costs such as stamp duty and transfer fees, among others, and local councils, who are responsible for calculating rates, also charge different amounts, as do banks and lenders.
In some states, first home buyers (non-investors) can avoid stamp duties and receive other benefits
Here is an example of upfront costs for a $500,000 property in Queensland. The important thing to know is these go on top of your deposit, so for this property the buyer will need a minimum of $67,000-76,000 in funds to make it work.
| Purchase price | $500,000 |
| Stamp duty (First-home buyer) | $0 |
| Stamp duty (investor / non first-home buyer) | $8750 |
| Building inspection and pest inspection (combined) | $600 (essential) |
| Mortgage registration fee | $187 |
| Transfer fee ($35 for every $10,000 over $180,000) | $1120 |
| Loan application fee | $600 (varies by lender) |
| LMI – Lenders mortgage insurance (with only 10% deposit) | $12,000 |
| Council and water rates | $500 |
| Conveyancing and legal fees | $1,800 |
Hidden and total costs for buying a home
| Hidden costs for first-home buyers | $16,807 |
| Hidden costs for other buyers | $25,557 |