New South Wales is the most populated state in Australia and has the highest average house and unit price across the nation. It’s no secret that breaking in to the NSW property market can be tough and for those lucky enough to do so, there are some unavoidable expenses when buying property.
These are the costs of buying property in NSW in 2023:
For most buyers, paying stamp duty is a requirement when purchasing property. In addition, stamp duty is often a large expense, adding up to more than $20,000.00 for the purchase of a property valued at $600,000.00.
Revenue NSW provides information and an online calculator that can help you find out how much stamp duty you need to pay. We can provide advice or your eligibility for concessions or exemptions from payment of stamp duty, including First Home Buyers Assistance Scheme.
If you are borrowing funds to complete your purchase, you will need to pay bank fees and, if you are borrowing more than 80% of the value of your home, Lenders Mortgage Insurance (LMI).
You will also need to pay title and mortgage registration fees. Currently it costs approximately $160 to register a transfer and $160 to register a mortgage on title for a property in NSW.
We recommend all buyers obtain a building and pest inspection before purchasing a property.
For strata properties, we also recommend you undertake an inspection of the strata records for the complex.
When you are the owner of the property, there will also be ongoing costs to pay, including council and water rates, utilities like electricity and gas, as well as maintenance and repair costs for the home.
It’s worth adding these costs into your budget so you can calculate how much you’ll need to save to buy and manage a home.