Purchasing a property in Sydney involves more than just the sale price. Whether you’re buying a house or apartment, there are several additional costs to factor into your budget. Being aware of these upfront will help you avoid surprises and plan more effectively.
Here’s a breakdown of the main expenses to consider:
1. Transfer Duty (formerly known as Stamp Duty)
When you buy a property or someone transfers ownership of a property to you in NSW, you must in most circumstances pay Transfer Duty. Transfer Duty is the largest expense after the purchase price of a property. It’s a NSW Government tax calculated based on the property’s purchase price—higher property values incur higher Transfer Duty.
You can calculate the Transfer Duty payable on a property with Revenue NSW’s calculator here.
- First Home Buyers Assistance Scheme (FHBAS)
An exception is made for first home buyers under the First Home Buyers Assistance Scheme :- For properties $800,000 or less : Full exemption. There is no Transfer Duty payable.
- For properties between $800,000 and $1,000,000: Concessional rate applies.
- Use the First Homebuyers Assistance Calculator for details.
- Premium Property Duty:
The calculation formula for Premium Property Duty from 1 July 2025 until 30 June 2026 is $186,667 plus $7.00 for every $100 over $3,721,000.
For more information on Transfer duty please visit Revenue NSW
2. Loan Related Fees
If you’re taking out a mortgage, there may be additional bank-related charges:
- Loan application or establishment fees.
- Property valuation fees.
- Ongoing monthly or annual account-keeping charges.
These fees vary by institution, so it’s important to confirm costs with your lender.
3. Lenders Mortgage Insurance (LMI)
LMI is a one-off premium required if you borrow more than 80% of the property’s value. It protects the lender (not the borrower) in case of a default on the loan.
- Costs depend on your loan-to-value ratio and the lender’s policy.
- Some professionals (e.g., legal, medical, or accounting) may qualify for an LMI waiver. Check with your mortgage broker or lender.
First home buyers under the expanded Home Guarantee Scheme may be exempt from LMI. More information can be found here.
4. Conveyancing or Legal Fees
A conveyancer or solicitor will handle the legal paperwork and ensure the property title is transferred correctly.
- Expect to pay $1,000–$2,500, depending on the complexity of the transaction.
- Make sure your chosen professional is licensed and experienced with NSW property law.
5. Building and Pest Inspection Reports
A building and pest inspection reveals potential issues like structural damage or pest infestations.
- Cost: Around $500-$700 for a standard house in Sydney.
- Even if the vendor provides a report, consider obtaining your own for peace of mind.
6. Strata Reports (for Apartments and Townhouses)
If you’re buying into a strata scheme, a strata inspection report reviews the building’s records and financial position.
It typically includes:
- Outstanding building maintenance or defects
- Strata levies, sinking fund balance, and insurance
- Meeting minutes and special levies
- Cost: From $250–$400, depending on the size and age of the strata scheme.
7. Moving Costs
Don’t forget the cost of getting your belongings from A to B.
- Prices vary based on distance, volume, and access (stairs, parking, etc.).
- Get multiple quotes and check online reviews or personal recommendations.
Seek recommendations from friends and family to find reliable and cost-effective services.
8. Ongoing Costs
After the purchase, you’ll also need to budget for recurring expenses, including:
- Council rates and water usage charges
- Strata levies (if applicable)
- Building and contents insurance
- Maintenance and repairs
Final Thoughts
Understanding the true cost of buying a property is key to avoiding budget blowouts. From Transfer Duty to inspections and insurance, these additional expenses can quickly add up. Factoring in these costs will help you make informed, stress-free decisions when purchasing your Sydney property.
