Hidden Costs of Buying a Home in Australia — The Full List (2026)

Updated

Hidden Costs of Buying a Home in Australia — The Full List (2026)

Everyone knows about stamp duty and the deposit. But there are dozens of smaller costs in the home buying process that buyers routinely underestimate or miss entirely. Missing these costs can leave you underprepared at settlement — or stuck with unexpected bills in the first months of ownership.

This guide covers every hidden or overlooked cost of buying a home in Australia.

Hidden Pre-Purchase Costs

Building and Pest Inspection

Before you exchange contracts on a house, getting a building and pest inspection is strongly recommended (sometimes mandatory under contract conditions).

  • Building inspection: $350–$700
  • Pest inspection: $200–$400
  • Combined building and pest: $450–$800

The inspection report can reveal structural defects, moisture issues, non-compliant work and pest damage. A failed inspection saves you from a far more expensive problem. If you walk away from a purchase after getting an inspection, the cost of the report is written off — but it is far less than buying a property with a hidden $30,000 defect.

In some states (QLD, NSW), inspections must be obtained before auction — there is no cooling-off period at auction.

Strata Report / Owners Corporation Records

If buying an apartment, unit or townhouse in a strata scheme, you need a strata report (also called an owners corporation search or body corporate records inspection).

  • Typically $200–$500 depending on complexity
  • Reveals outstanding levies, disputes, pending special levies, financial health of the scheme

A strata scheme with poor financials or pending special levies can cost new owners tens of thousands of dollars. Always review the strata records before purchasing.

Auction Registration Deposit

At some auctions (particularly in VIC), you must register and provide ID, and may need to provide a deposit at registration. This is returned if you do not win the auction.

Due Diligence on Off-the-Plan Purchases

For off-the-plan purchases, legal review of the contract is more complex. Solicitor fees for reviewing off-the-plan contracts are often higher ($1,500–$3,000+).

Cooling-Off Period Fee

In most states, if you exercise your cooling-off right (change your mind within the cooling-off period after exchanging contracts), a penalty applies:

  • NSW: 0.25% of the purchase price ($1,750 on a $700,000 property)
  • VIC: 0.2% of the purchase price
  • QLD: $100 flat fee

This is the cost of exiting a contract after exchange. Budget for it if you think you may need to use your cooling-off right.

Section 32 / Vendor Statement Review

In VIC, the vendor must provide a Section 32 statement before sale. Buyers commonly pay their solicitor to review this ($300–$600). In NSW, a contract for sale is provided instead.

Hidden Financing Costs

Lenders Mortgage Insurance (LMI)

LMI is often described as “hidden” because first-time buyers don’t realise it exists until the lender discloses it. If your deposit is under 20%, LMI can add $5,000–$35,000+ to your costs.

→ See LMI Explained

LMI Stamp Duty

In most states, LMI premiums are subject to stamp duty (an additional percentage levied on top of the LMI premium). This increases the total LMI cost by 9–11%.

Title Insurance Premium

Title insurance is an optional one-time premium that protects against title defects (e.g., encroachments, illegal structures, outstanding liens). Typically $150–$500. It is an optional cost but increasingly recommended.

→ See Title Insurance Australia

Hidden Settlement Costs

Council Rate Adjustments

When you settle on a property, rates and other outgoings are adjusted between buyer and seller based on the settlement date.

  • If the previous owner paid rates up to 30 June and you settle on 15 April, you reimburse the seller for the rates they paid for the 15 April – 30 June period
  • Typically $200–$2,000 depending on council rates and timing
  • Often overlooked by buyers who focus on the bigger costs

Strata Levy Adjustments

Similar to council rate adjustments — if the previous owner has paid the next quarter’s strata levy, you reimburse them the proportion from settlement date.

Water Usage Adjustments

Buyer and seller adjust water usage charges at settlement. Usually a small amount.

Utility Connection Fees

Connecting gas, electricity, internet and other utilities to a new property:

  • Electricity: $0–$200 (some providers offer free connection)
  • Gas: $0–$150 connection fee
  • Internet: $0–$299 for router/modem or installation

Some homes in new estates have infrastructure connection fees (NBN, sewer, water) — these can be $2,000–$10,000+. Always check for any infrastructure charges before purchasing land in a new estate.

PEXA (Electronic Settlement) Fee

Electronic property settlements via PEXA attract a small fee — typically split between buyer and seller. Usually $100–$120 for the buyer’s portion.

Hidden Ownership Costs in the First Year

Immediate Repairs and Maintenance

Even a well-presented home will have maintenance requirements you don’t expect until you move in:

  • Appliances that were working at inspection may fail
  • Garden maintenance equipment needed
  • Locks, security, window furnishings

Budget $2,000–$10,000 for the first year of ownership maintenance (more for older homes).

Building Insurance

Required immediately at exchange of contracts (not settlement — you have an insurable interest from exchange). Budget $1,000–$3,000/year depending on location and property.

Landlord Insurance (Investors)

Investors purchasing a rental property need landlord insurance from settlement day.

Council Rates

Council rates vary widely across Australia:

  • Typical range: $1,200–$4,000/year
  • Some premium areas (coastal, inner city) can be $3,000–$6,000+

Factor rates into your ongoing housing budget.

Water Rates

Residential water charges (usage + service charge):

  • Typical range: $800–$2,000/year depending on usage and provider

Body Corporate / Strata Levies (Apartments)

If you buy an apartment, strata levies are a mandatory ongoing cost:

  • Typically $2,000–$15,000+/year depending on the scheme, facilities and sinking fund contributions
  • Review the strata records to understand projected levies before buying

The Costs of Moving

Removalist Costs

  • Local move (one suburb/city): $500–$2,000
  • Interstate move: $3,000–$12,000+
  • Packing services: additional $500–$1,500

Get at least 3 quotes. Most reputable removalists book out weeks in advance — don’t leave this too late.

Cleaning

  • Exit clean of rental: $200–$600
  • Cleaning of new home before move-in: $200–$400

Change of Address Costs

Updating ATO, Medicare, Centrelink, electoral roll, bank accounts, insurance, subscriptions — time-consuming but no direct cost.

The Real Number — What to Budget

For a typical $700,000 home purchase in a major Australian city:

CategoryEstimate
Known costs (stamp duty, LMI if applicable, conveyancing)$0–$50,000
Hidden/overlooked costs (inspections, adjustments, title insurance, connections)$2,000–$6,000
First-year ownership costs (insurance, rates, maintenance, moving)$5,000–$15,000
Total additional budget to hold in reserve$7,000–$21,000 over known costs

This article provides general information about costs associated with buying property in Australia. All amounts are indicative. For advice tailored to your situation, speak with a licensed mortgage broker, solicitor or financial adviser. Find one through MoneySmart.