When buying a property, the purchase price is just the beginning. There are several additional expenses that buyers must account for to ensure they don’t face unexpected financial strain down the line.

1. Stamp Duty

This is one of the biggest upfront costs, varying by state and purchase price. Some first-home buyers may be eligible for exemptions or concessions, so it’s worth checking government incentives.

2. Legal and Conveyancing Fees

Hiring a conveyancer or solicitor is essential for handling contracts, title transfers, and legal paperwork. Costs can range from a few hundred to several thousand dollars, depending on the complexity of the transaction.

3. Loan-Related Expenses

If you’re taking out a mortgage, factor in costs such as loan application fees, valuation fees, and lender’s mortgage insurance (LMI) if your deposit is below 20%. These can add up quickly and impact your overall borrowing power.

4. Home Insurance

Protecting your investment is crucial. Building and contents insurance cover you against unexpected damages or loss, while some lenders may also require mortgage insurance before approving a loan.

5. Council Rates and Utilities

Ongoing costs such as council rates, water charges, and body corporate fees (for apartments or townhouses) need to be factored into your budget. These are typically paid quarterly and can vary significantly by location.

6. Maintenance and Repairs

From minor fixes to major renovations, property maintenance is an ongoing expense. Setting aside funds for routine upkeep, appliance repairs, and potential renovations will help avoid financial stress when unexpected issues arise.

7. Moving and Connection Costs

Don’t forget expenses related to moving, including hiring professional movers, connection fees for utilities (electricity, gas, internet), and purchasing furniture or appliances for your new home.

By planning for these hidden costs in advance, buyers can make informed decisions and avoid financial surprises after securing their new home.