Total Costs of Buying Property in Australia

A recent research report found that Australian residential property prices rose by an average of 22% in 2021. Australian property has always been popular with investors, particularly in the capital cities such as Sydney and Melbourne. This article walks through the costs involved in buying property in Australia beyond the purchase price itself, and how much an investor should set aside before buying an Australian property.

Stamp Duty and the Extra Stamp Duty for Foreign Buyers

Stamp duty arises from the sale or transfer of personal and business-related assets. Property and land are themselves a type of asset, so the government charges stamp duty on the sale or transfer of a property when a real estate transaction takes place. The exact amount depends on which state or territory the property is in and the transaction price at the time of purchase. Stamp duty on Australian property purchases is currently set independently by each state government, so the calculation method varies by location. In most Australian states, foreign nationals buying property must also pay an extra stamp duty surcharge for foreign buyers, currently ranging from 0% (Northern Territory) to 9% (New South Wales) depending on the state. For the detailed calculation method in each state, see: Australia’s Stamp Duty Rates by State.

Legal and Conveyancing Fees

Buying property in Australia requires the help of a solicitor; alternatively, a certified property-transfer specialist can help handle the transaction, though it’s important to check whether they hold a licence certified by the relevant state government. A solicitor’s basic services include reviewing the contract, checking title to the property and drafting the settlement documents, among other paperwork. Fees depend on the complexity of the matter, and typically run from about AUD 700 to AUD 2,500. Be sure to confirm in advance that the solicitor or property-transfer specialist holds a licence recognized by the relevant state government — this can be verified through the Australian Institute of Conveyancers (AIC).

FIRB Application Fee

Before buying Australian property, a foreign buyer must apply to Australia’s Foreign Investment Review Board (FIRB) and receive approval. The application also requires a fee, based on the transaction price of the property. For the new-dwelling/vacant-land category (2025-26 financial year), a foreign national buying Australian property at a transaction price of AUD 1 million or less pays an application fee of AUD 15,100. The fee rises on a fixed schedule as the price increases — for example, AUD 30,300 at AUD 2 million and AUD 60,600 at AUD 3 million — up to AUD 1,205,200 for consideration above AUD 40 million.

FIRB: https://firb.gov.au/

Transfer Fee

This fee is paid to each state government’s Land Titles Office to register the transfer of ownership of the land. The fee varies by state — some states charge a fixed amount, such as New South Wales (NSW), which charges AUD 75 regardless of the size or price of the property. South Australia, by contrast, charges AUD 194 on a property priced above AUD 40,000, plus an additional 0.6% on the amount above AUD 50,000.

Pest and Building Inspection Fees

As in the UK, buying property in Australia typically involves a surveyor inspecting the building’s structure before the purchase is completed. Unlike in the UK, Australian inspections also check for pest problems. Termites and other pests can cause long-term structural damage and pose a safety risk to a building. Engaging a specialist just to deal with a termite problem in Australia can cost several thousand dollars, so buyers are advised to have the property checked before purchase; the exact cost depends on how much the buyer chooses to have inspected.

The above are the costs of buying property in Australia; there are also some further costs that can arise in particular circumstances.

Bank Mortgage Fees

Some Australian buyers apply to a bank for a mortgage when purchasing property, and applying for a mortgage involves various fees charged by the bank, such as a property valuation fee, a mortgage account setup fee, a loan application fee, and a fee to register the mortgage with the government, among others. Total fees typically run to around 4% of the loan amount, depending on the bank and the loan plan the applicant chooses.

Home Insurance

While Australia does not sit on an earthquake fault line, it is occasionally affected by bushfires in summer, so most buyers take out insurance on their Australian property to avoid a loss in the event of a fire or similar incident. Property insurance is also usually one of the conditions of a bank loan.

In Summary

The above are the more common incidental costs of buying property, typically amounting to about 7%-11% of the purchase price. The actual figure still depends on factors such as which state the property is in and the type and size of the property. We recommend that buyers investing in Australian property engage a locally licensed solicitor to help, which can give a more accurate estimate of these costs.

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