Property Costs to Expect When Buying in Queensland

by | Feb 14, 2024 | Knowledge

Finding a property that is right for you can often be a difficult task, whether you’re looking for a home, an investment property, or buying land for future development.

As a prospective property owner, it is crucial to consider the various costs associated with the purchase which go beyond just the price written on the contract.

These are some of the key expenses you should account for when planning to buy:

1. Transfer Duty

Sometimes referred to as Stamp Duty, this is a tax payable on certain transactions including property purchases. Transfer Duty can be a significant expense, however concessions apply to home and first home buyers.

It is important to note that there are strict eligibility requirements that apply to the concessions, and you should always seek advice from your conveyancer as to whether you qualify.

You can calculate a cost estimate of how much duty you will need to pay using the online calculator from the Queensland Revenue Office. This will tell you how much you should be setting aside.

The calculator can be accessed here:
Transfer duty calculator

2. Building and Pest Inspection

A significant portion of property contracts are subject to a building and pest inspection. This allows you to make enquiries into the state of a property and make requests as to repair or, albeit uncommonly agreed, reductions to the purchase price.

Always keep in mind that preparation of this report by a building inspector will incur additional fees for you to pay.

3. Bank fees and charges

Buyers should be mindful of various bank fees associated with taking out a loan. Commonly these fees consist of application (or administration) and valuation fees. It is usual for a bank to require a property valuation to finalise their approval.

We recommend asking up front for an estimate of bank fees associated with the loan to make sure you have enough to cover the balance owing at settlement.

4. Land Registry Fees

The Queensland Government charges a fee (which changes based on the purchase price) to register the change of ownership of a property and to register a mortgage. This fee is paid by the buyer, so don’t forget to factor this in to your budget as well.

You can calculate the lodgement fees here:

Fee calculator

5. Adjustments

Ongoing expenses for a property such as water, council rates, rent and body corporate levies are apportioned at settlement. This is completed so that the period of time for which each party has owned, or will own, the property is reflected in financial adjustments.

For example, if you happen to be buying property at the start of the year and the seller has already paid the relevant council rates you will be required to reimburse the seller for a substantial portion of that rating period.

6. Insurance

One of the most commonly overlooked expense in buying property is insurance. Most contracts state that the property is at the buyer’s risk from the day after the contract is signed. Buyers will need to ensure that they are making arrangements as early as possible for insurance to protect their interest.

7. Legal fees

We always recommend that you engage a lawyer to assist you with the conveyancing process. While this is an additional cost, often buying a house is the biggest financial investment you will make in your life, so it pays to engage a professional to assist you through the process and ensure your rights are protected.

Miller Harris Lawyers offer an experienced property team that can assist you with the conveyancing process. Please feel free to contact us for further information.