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PURCHASE COSTS

Buying a property costs more than just the sales price

If you are new to property ownership you may not realise that buying a property costs more than just the purchase price. In addition to moving costs, council rates, strata fees, renovations and furniture, purchasers may need to account for the below additional fees:

  • Stamp duty

Stamp duty is a tax payable to the state government when property ownership is transferred from one party to another. It is calculated on the greater of the purchase price or market value of the property. (First home buyers may be eligible for an exemption or discount).

  • Legal costs

The legal transfer of ownership of the property requires a solicitor, conveyancer or settlement agent. They perform property and title searches to ensure the seller is entitled to release the property and manage contractual requirements. 

  • Inspections

Pest and building inspections are recommended and performed at your expense. Although optional, they can save you dealing with a major building problem after the purchase is complete. ​

  • Borrowing costs

Most lenders have application, valuation and settlement or loan approval fees that vary depending on mortgage product. Inca Mortgage Solutions are familiar with these fees and will explain them to you when presenting loan options.

  • Insurance

Depending on your loan-to-valuation ratio (LVR), you may be required to take out lenders mortgage insurance (LMI). Although you as the borrower pay for it, LMI does not protect you - it protects the lender should you default on your mortgage. You may also need building insurance unless purchasing a strata property.


  • Agent fees

Only applicable for those who are selling their current home to purchase another. Real-estate agents generally charge a percentage of the sale price (averaging around 2-2.5%).


If looking to purchase a property, contact Inca Mortgage Solutions for a funds position report outlining all the costs associated with your anticipated property purchase.