The Hidden Costs of Buying Property in Victoria (Beyond the Purchase Price)

When most people think about the cost of buying property, they think about the purchase price. But the purchase price is just the start. There are a significant number of additional costs that many buyers — especially first home buyers — do not budget for.

This guide breaks down every cost involved in buying property in Victoria, so you can plan your budget properly and avoid any nasty surprises.

Stamp duty (land transfer duty)

Stamp duty is the single biggest additional cost when buying property. It is a state government tax calculated as a percentage of the purchase price (or market value, if higher). For a $700,000 property, stamp duty is approximately $37,070.

First home buyers may be eligible for an exemption (for properties up to $600,000) or a concession (for properties between $600,001 and $750,000). See our first home buyer guide for full eligibility details.

You can use the State Revenue Office of Victoria's online calculator to work out your exact stamp duty liability.

Legal and conveyancing fees

You will need a solicitor or licensed conveyancer to handle the legal side of your purchase. This includes reviewing the contract, conducting searches, preparing settlement documents, and managing the settlement process.

Typical costs: $1,000 to $2,500(including GST and disbursements). More complex transactions — such as off-the-plan purchases, properties with unusual titles, or transactions involving trusts — may cost more.

Want to get a head start on your contract review before engaging a solicitor? Pre Contract Review provides an instant analysis for a fraction of the cost.

Building and pest inspection

A building and pest inspection is not legally required, but it is highly recommended. A qualified inspector will assess the structural condition of the property and check for pest damage (termites, in particular).

Typical costs: $400 to $800 for a standard residential property. Larger or older properties may cost more. Some inspectors offer combined building and pest reports at a discounted rate.

Title search and registration

Your solicitor or conveyancer will conduct a title search to verify the ownership and check for any encumbrances. After settlement, the transfer of ownership must be registered with Land Use Victoria.

Typical costs: $100 to $300in total, including the title search fee and the transfer registration fee. These are usually included in your solicitor's disbursements.

Loan application and mortgage registration fees

If you are borrowing to buy the property, your lender may charge a loan application fee (sometimes called an establishment fee). The mortgage also needs to be registered on the title.

Typical costs: $0 to $600 for the loan application fee (many lenders waive this or include it in the interest rate), plus approximately $120 for mortgage registration.

Lenders Mortgage Insurance (LMI)

If your deposit is less than 20% of the purchase price, most lenders will require you to pay Lenders Mortgage Insurance. This protects the lender (not you) if you default on the loan.

LMI can be substantial. On a $700,000 property with a 10% deposit, LMI could be $8,000 to $15,000 or more, depending on the lender and your loan-to-value ratio. This is often capitalised (added to the loan), but it still increases your total cost of borrowing.

Owner's Corporation fees and special levies

If you are buying an apartment, unit, or townhouse that is part of an Owner's Corporation, you will be required to pay regular levies. These cover building insurance, common area maintenance, building management, and contributions to the sinking fund for future works.

OC levies can range from $1,000 to $10,000+ per year, depending on the building. Older buildings and those with amenities (pools, gyms, lifts, concierge) tend to have higher levies.

Special levies are one-off charges for major works — such as cladding remediation, roof replacement, or structural repairs. These can run into tens of thousands of dollars. Check the OC certificate and meeting minutes carefully before buying.

Council rates, water rates, and land tax

As a property owner, you will pay quarterly council rates and water rates. These are ongoing costs that vary by municipality and property value.

• Council rates: Typically $1,200 to $3,000 per year for a standard residential property.
• Water rates: Typically $800 to $1,500 per year, including service charges and usage.
• Land tax: Generally does not apply to your principal place of residence. However, if you are buying an investment property, land tax may apply above the tax-free threshold.

Moving costs

Do not forget the cost of actually moving into your new home. Professional removalists typically charge $400 to $2,000+ depending on the size of your home and the distance. You may also need to budget for cleaning, utility connections, and redirecting mail.

Example: total cost for a $700,000 property

Here is an approximate breakdown of the total cost of purchasing a $700,000 property in Victoria as a non-first-home buyer:

If you are a first home buyer purchasing under $600,000, you could save the entire stamp duty amount. Even between $600,001 and $750,000, the concession significantly reduces this cost.

Plan ahead

The best way to avoid surprises is to understand all the costs upfront. Before you start making offers, add up the full cost of purchase — not just the price — and make sure your budget can handle it.

Start by reviewing your Section 32 and Contract of Sale to understand what you are buying and on what terms. Then use a tool like Pre Contract Review to flag any issues before you engage a solicitor and start spending on professional fees.