When people think about buying a house, they think about the purchase price. But that number on the contract is not the full story.
By the time you reach settlement, the expenses in buying a house can add tens of thousands of dollars on top of your deposit. A lot of buyers (especially first home buyers) get caught short because they did not budget for these extras.
So let’s go through every cost, one by one, so you know exactly what you’re in for.
How Much Extra Should You Budget?
Most buyers in Australia spend an extra 3% to 5% of the purchase price on top of their deposit just to get to settlement. On a $700,000 home, that’s roughly $21,000 to $35,000.
Some of these costs are fixed. Others vary based on where you’re buying, the type of property, and whether you qualify for any government grants or exemptions.
1. Stamp Duty (Transfer Duty)
Stamp duty is the big one. After your deposit, it’s usually the largest single cost when buying a house in NSW.
It’s a state government tax you pay when the property title transfers into your name. The amount depends on:
- The purchase price
- Which state or territory you’re buying in
- Whether you’re a first home buyer
- Whether it will be your home or an investment property
In NSW, stamp duty on a $700,000 home sits at around $26,000 for someone who has bought before. First home buyers may pay a reduced rate or nothing at all depending on the purchase price.
Did you know? You can use the Revenue NSW calculator online to get an accurate number for your situation before you start making offers. The NSW government has calculators to help with payroll tax, transfer duty, duties, levies, land tax and first home buyer assistance scheme. Calculators | Revenue NSW
2. Conveyancing and Legal Fees
You need a solicitor or licensed conveyancer to handle the legal work when you buy a property. They review the contract, run searches on the property, and manage the settlement process from start to finish.
Professional fees usually sit between $800 and $2,500. On top of that, there are disbursements – things like title searches, council checks, and water searches. These add around $300 to $600.
Shop around and get a few quotes. Cheaper isn’t always better here, but there is no reason to overpay either.
3. Building and Pest Inspection
Never buy a house without getting a building and pest inspection first. Period.
A licensed inspector will check for structural issues, water damage, roof problems, termites, and other pests. What looks fine at an open home can turn into a $50,000 repair bill if you skip this step.
A combined report costs between $400 and $700. It’s one of the best few hundred dollars you’ll spend in the whole process.
4. Property Check and Zoning Report
Most buyers spend time checking the number of bedrooms and the size of the backyard. Not many check the zoning. And that’s where things can go badly wrong.
A property check report shows you:
- What the land is zoned for – residential, commercial, mixed use
- Flood, bushfire, or contamination overlays on the land
- Heritage listings or restrictions on what you can build or change
- Any outstanding council notices on the property
Zoning affects whether you can renovate, extend, or subdivide. It affects your long-term plans for the property and what it might be worth when you sell.
Check This Property makes this easy for NSW buyers. A Check This Property zoning report is completely free and gives you instant access to zoning information before you make an offer. Run a Check This Property NSW property check in minutes. No forms to fill in, no waiting around.
Related: Top 5 Hidden Costs When Buying Property in NSW
5. Mortgage and Lender Fees
Most people compare interest rates when picking a home loan. But lenders also charge fees that add up fast.
Watch out for:
- Application or establishment fee: $150 to $700
- Valuation fee: $200 to $600 – the bank values the property separately from what you agreed to pay
- Lenders Mortgage Insurance (LMI): If your deposit is below 20%, you’ll likely pay LMI. This can be anywhere from a few thousand to over $15,000 depending on the loan size
- Settlement fee: $150 to $300
Did you know? Lenders Mortgage Insurance (LMI) covers the bank if you default – not you. It does nothing for you if you lose your job or can’t make repayments. Talk to your broker about income protection insurance as a separate consideration.
6. Moving Costs
After settlement, you still have to actually move. Removalist costs in Australia range from around $500 for a small local job up to $5,000 or more for a larger interstate move.
Also budget for:
- Packing boxes and materials
- Short-term storage if your moving date and settlement don’t line up
- Connecting electricity, gas, and internet at the new place
7. Council Rates and Strata Levies
Once settlement goes through, the ongoing bills start immediately.
Council rates in NSW are charged quarterly and typically run between $1,000 and $2,500 a year depending on your council area and land value.
Buying a unit or townhouse? You’ll also pay strata levies. These cover shared area maintenance, building insurance, and the sinking fund for major repairs down the track. Levies can be a few hundred dollars a quarter for a small block, or several thousand in a complex with a pool, gym, or lift.
Always get the strata report before you exchange. It tells you if the sinking fund is healthy or if a big special levy is coming.
8. Building and Contents Insurance
Most lenders want building insurance sorted before settlement day. It covers the structure of the property against fire, storm damage, and similar events.
Annual premiums for building insurance in Australia generally sit between $1,000 and $2,500. Contents insurance (covering your furniture and belongings) is on top of that.
First Home Buyers in NSW – What Help Can You Get?
If this is your first property purchase in New South Wales, there are a few schemes worth looking into:
- First Home Buyer Assistance Scheme (FHBAS): Stamp duty exemption on homes under $800,000 or a discounted rate up to $1 million
- First Home Owner Grant (FHOG): A $10,000 grant for new or substantially renovated homes
- First Home Guarantee: A federal scheme that lets eligible buyers purchase with just a 5% deposit without paying LMI
Each scheme has its own conditions and price thresholds. Check Revenue NSW and the federal government websites for current details – the rules change from time to time.
Cost Summary: Buying a $700,000 Home in NSW
Here’s a rough breakdown of the fees when buying a house in NSW at $700,000:
- Stamp duty: $26,000 (for non-first home buyers)
- Conveyancing and searches: $1,100 to $3,100
- Building and pest inspection: $400 to $700
- Property check report: Free via Check This Property
- Mortgage and lender fees: $500 to $1,600+
- LMI (if deposit is under 20%): Varies – commonly $5,000 to $15,000+
- Removalists: $500 to $3,000+
- Building insurance (first year): $1,000 to $2,500
Total extra costs (not counting LMI): roughly $30,000 to $37,000 on top of a $700,000 purchase price.
Check the Property Before You Make an Offer
A building inspection tells you about the physical state of the property. But it won’t tell you about zoning restrictions, flood overlays, or what the council has on file.
That’s where a Check This Property report comes in. NSW buyers can check zoning, planning controls, flood risk, and more before making any decisions. The report is free and takes just a minute to run.
Knowing what you’re buying before you sign is always better than finding out after.
Get instant access to zoning information – run a free Check This Property NSW property check today.
Frequently Asked Questions
What are the hidden costs of buying a home in Australia?
The ones that catch buyers off guard most often are stamp duty, LMI, conveyancing fees, and building inspections. Add in moving costs, lender fees, and insurance, and the total quickly climbs well beyond the deposit.
What is the cost of buying a house for first home buyers in NSW?
First home buyers in NSW can save big on stamp duty if they qualify for an exemption or concession. Even so, there are still conveyancing fees, inspection costs, lender charges, and moving expenses to factor in.
How do I check a property before buying in NSW?
Run a free Check This Property report to check zoning, overlays, and planning controls. Then book a licensed inspector for a building and pest inspection before you exchange contracts.
What is the property check cost in NSW?
A Check This Property report is free. It’s one of the simplest checks you can do before buying a house in NSW – and it costs you nothing.
Final Thoughts
Buying a house is expensive enough without being blindsided by costs you didn’t see coming. The more you know upfront about the charges when buying a house, the better placed you are to budget properly and avoid stress at settlement.
Do your research early. Check the property properly. And go into the process with a clear picture of what it’s actually going to cost.
Start with a free Check This Property zoning report – it takes a few minutes and gives you information that matters.