Buying a home is a major milestone. It is a place to settle into, build memories, and create long-term security. While many buyers focus on the purchase price, deposit, and loan repayments, the true cost of owning a home extends far beyond these figures.
Understanding the additional expenses upfront can help you plan more effectively and reduce the risk of unexpected financial pressure later on.
Preparing for both expected and unexpected costs protects your finances and allows you to enjoy your home with greater confidence.
Purchasing a property often comes with expenses that are easy to overlook. Factoring these into your budget early will put you in a stronger position from day one.
Common hidden costs to look out for:
- Body corporate and strata fees
If you are purchasing an apartment, unit, or townhouse, you are often required to pay ongoing body corporate or strata fees. These cover shared expenses such as building insurance, maintenance of common areas, gardens, lifts, pools, and future repair funds. Costs vary depending on the building’s age, size, and facilities.
- Government charges and stamp duty
Property purchases come with state or territory government fees, including transfer registration fees and stamp duty. Stamp duty is a one-off cost paid by the buyer and can significantly increase your upfront expenses.
- Legal and conveyancing fees
A solicitor or conveyancer is required to manage the legal process of buying a home. This includes reviewing contracts, handling settlement, and ensuring the property is correctly transferred into your name.
- Buyer’s agent fees
If you engage a buyer’s agent to help search for and negotiate a property, their services will come at an additional cost.
- Building and pest inspections
Many buyers arrange inspections before finalising a purchase. These assessments check the condition of the property and identify issues such as structural damage, moisture problems, or pest activity.
- Moving and set-up costs
Expenses such as removalists, truck hire, storage, utility connections, and temporary accommodation between settlements can quickly add up.
- Mortgage registration and transfer fees
These costs vary by state and territory and are usually paid at settlement. Although smaller than stamp duty, they are unavoidable and should be included in your upfront property purchase costs to avoid unexpected expenses.
- Council and water rates
Council rates fund local services, while water rates cover water usage, sewerage, and drainage. - Insurance after settlement
Building insurance is another important cost to consider. Premiums depend on factors such as location, building type, and exposure to risks like flooding or bushfires. For apartments and townhouses, insurance is often included in body corporate fees, while standalone homeowners need to arrange their own cover.
Why these costs matter
Having a clear picture of the true costs involved in buying and owning a home can help you prepare more confidently for settlement and ongoing ownership costs.
Buyers who focus only on the deposit and mortgage repayments may find themselves unprepared for additional expenses such as legal fees, inspections, and insurance.
For investors, overlooking ongoing costs can eat into rental income. For owner-occupiers, unplanned expenses can place pressure on cash flow and push back future goals like renovations or home improvements.
The importance of a financial buffer
Even with insurance in place, not all maintenance issues are covered. Everyday repairs like general wear and tear can arise without warning.
Having a cash buffer allows you to handle urgent repairs without stress. It provides flexibility and peace of mind, especially in the early years of home ownership.
How Manage Your Loans can help
Whether you are upsizing, downsizing, or buying your next property, Manage Your Loans is here to support you through the process. Our team helps simplify complex decisions by providing clear guidance and information about loan options that may be suitable for different circumstances.
We believe informed borrowers make better financial choices. From your first enquiry through to settlement and beyond, our brokers take the time to ensure you understand your options and feel confident at every step.