The cost of buying property in Australia: taxes & fees
Buying property in Australia involves several one-off costs and ongoing expenses that can significantly affect your budget.
This guide outlines the key fees and taxes you should consider when purchasing property, helping you make informed financial decisions.
One-Off Purchase Costs
When buying property in Australia, be prepared for additional costs beyond the purchase price. These can include transfer duty, legal fees, and registration costs.
The total buying costs, including these one-off expenses, typically range from 5% to 10% of the property's purchase price.
- Transfer duty (stamp duty) varies by state; often calculated as a percentage of property value.
- Legal and conveyancing fees usually cost between 1,000 and 2,500 AUD.
- Registration fees are generally around 100 to 200 AUD.
Transfer Duty (Stamp Duty)
Transfer duty is one of the largest costs. Each state has different rates and thresholds that can impact the final amount paid.
It's advisable to use official state revenue websites or consult with a local lawyer for the most accurate rates.
Example of Buying Costs
In New South Wales, for a property priced at 800,000 AUD, the total buying costs might break down as follows: 70,000 AUD in transfer duty, 2,000 AUD in legal fees, and 150 AUD in registration fees.
This means you should budget approximately 72,150 AUD in additional costs, resulting in total costs of around 872,150 AUD.
Recurring Costs of Ownership
Once you own a property, there are ongoing costs to consider. Property taxes, insurance, and community fees can add up quickly.
Annually, you might expect to pay around 1% of the property value in council rates, plus any strata fees for community-managed properties.
- Annual property tax (council rates) may typically be around 1% of the property's value.
- Strata fees for condominium properties vary widely but can range from 2,000 to 10,000 AUD per year.
- Utilities like water, electricity, and gas can average 3,000 to 5,000 AUD annually.
Mortgage Costs for Non-Residents
Non-residents can obtain mortgages in Australia, but terms may not be as favourable as for residents. Lenders may require larger deposits and may impose higher interest rates.
It's important to check with your bank or a mortgage broker familiar with policies for non-residents.
Official Resources and Professional Help
Always verify information with official resources or consult qualified professionals. State government websites offer property transaction resources.
Hiring a local solicitor or conveyancer can help navigate the complexities of property purchases in Australia.
Frequently asked questions
What is transfer duty in Australia?
Transfer duty (often called stamp duty) is a tax imposed on property transactions, calculated as a percentage of the property value.
How much should I budget for buying costs in total?
It's prudent to budget an additional 5% to 10% on top of the property price to cover various buying costs.
What are the recurring costs of owning property?
Recurring costs include annual property tax, utilities, insurance, and if applicable, community or strata fees.
Can non-residents get a mortgage in Australia?
Yes, non-residents can obtain mortgages, but terms may require larger deposits and carry higher interest rates.
Where can I find official tax and fees information?
Consult the relevant state government website or engage a qualified local lawyer or accountant for accurate advice.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed September 2026.