What are the main costs of buying a property?


Buying a property involves upfront and ongoing costs.

What are some of the upfront costs of buying a property?

If you’re like most people, you’ll pay the upfront costs with money saved as a deposit and borrowed from a lender. The up-front costs can include:

  • purchase price: what you’ll pay to purchase the property
  • stamp duty: a substantial government tax on property purchases
  • legal and conveyancing fees: for transferring ownership of the property to you. These will vary depending on the property you buy and the conveyancer or solicitor you use
  • loan application fees: these vary by lender. Find details about an AMP bank home loan.
  • mortgage insurance: depending on the type of loan you take out and the size of your deposit, you may need to pay mortgage insurance to protect the lender
  • building, pest and strata inspection reports: these costs can add up but will give you the peace of mind of knowing what you’d be buying
  • moving costs.

Remember that the total upfront costs will affect the amount you’ll need to save as a deposit.

What are the main ongoing costs of owning a property?

Some of the ongoing costs that come with a property can include:

  • interest charges: payable on any money you borrow. For example, money you borrow to purchase the house and for other expenses such as stamp duty
  • loan repayments: unless you have an interest-only loan, you need to pay back the principal amount borrowed plus interest charges
  • strata fees: for apartments and other communally managed properties
  • council rates
  • utility costs: for example, water, gas and electricity charges
  • insurance: building and contents insurance can protect you from unexpected costs due to damage, accidents or theft
  • property maintenance: for example, the costs of maintaining your home and garden.

Make sure you consider all possible ongoing costs before buying a property. They can add up and many property owners are taken by surprise when bills start arriving. 

You may also want to consider an additional ongoing cost that may become relevant later on: land tax is an additional charge for investment properties. If your home becomes an investment property down the track, land tax will be an extra cost.

A useful resource when considering costs is the website of the government department that administers the Fair Trading Act in your state:

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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.