Costs Involved in Buying a Property in Victoria

Buying a property in Victoria involves more than just the purchase price. To avoid surprises, it’s important to understand all the upfront and ongoing costs — some of which may not be obvious at first glance.

At DY Conveyancing Melbourne, we help buyers plan ahead by explaining each cost clearly and ensuring nothing is overlooked.

1. Stamp Duty (Land Transfer Duty)

Stamp duty is often the largest additional cost when buying property in Victoria. It’s a government tax based on the purchase price (or market value) of the property.

The amount payable depends on several factors:

• Whether you’re a first home buyer

• Whether the property is your primary residence

• The purchase price

• Any concessions or exemptions available (e.g. pensioner, off-the-plan)

Stamp duty is typically paid on or before settlement.

2. Conveyancing & Legal Fees

You’ll need a professional to review the contract, conduct property searches, handle legal documents, and complete the settlement.

At DY Conveyancing Melbourne, our transparent fixed-fee packages include:

• Reviewing the contract and Section 32

• Arranging searches

• Handling settlement

• Liaising with your lender and agent

This ensures no hidden surprises and full legal compliance.

3. Building & Pest Inspection (Optional but Recommended)

A pre-purchase inspection can reveal structural issues, pest damage, or safety concerns. While optional, this is especially important for older homes.

Costs vary depending on the size and location of the property.

4. Lender & Finance Costs

If you’re getting a home loan, you might face:

• Loan application fees

• Lenders Mortgage Insurance (LMI), if borrowing over 80% of the property value

• Valuation fees

• Bank settlement or legal fees

Always ask your mortgage broker or lender for a breakdown of all fees involved.

5. Government & Registration Fees

These include:

• Transfer of Land (title registration) fee

• Mortgage registration fee (if you’re borrowing)

These are set by Land Use Victoria and are payable at settlement.

6. Council & Utility Rate Adjustments

At settlement, costs like council rates, water, and body corporate fees are adjusted between the buyer and seller. You’ll pay your share from the day you take ownership.

7. Moving & Set-Up Costs

Don’t forget practical costs such as:

• Removalists

• Connecting electricity, gas, internet

• Home insurance

• Immediate repairs or furniture

Final Thoughts

Buying a home is a major financial commitment. Having a clear picture of the true costs involved allows you to budget confidently — and avoid last-minute stress.

At DY Conveyancing Melbourne, we’ll walk you through all expenses, ensure your settlement is smooth, and answer every question along the way.

Buying your first or next home?Let us simplify the process. We’re here to help — from contract review to final settlement.