Buyer Resources.

Buyer Resources

5 Costs to Consider When Buying Property in Australia.

Australia is known for looking out for the best interests of the nation and its people – and this applies in property too. In doing so, there are a number of federal, state and locals measures in place centred on taxes and fees.

Here are five costs that all citizens, residents and foreign investors should consider before buying a property in Australia.

Stamp Duty.

The Australian government imposes stamp duty on all property purchases. Stamp duty (also called transfer duty) is a tax designed to cover the costs of documents and transactions, such as property transfers.

How much transfer duty you pay is determined by the property’s value and the state in which you are buying. Click on the links below for an in-depth look at each state’s stamp duty requirements.

State by Stamp Duty:

In addition to stamp duty, foreign investors who want to invest in residential property in Australia are required to pay a foreign ownership surcharge. Again the amount is determined on a state-by-state basis. Click on the links below for more information about stamp duty for foreign investors.

State-by-State Stamp Duty Surcharge for Foreign Investors:

Land Tax.

Land tax is an annual tax levied on property owned above the state-determined land tax threshold. Your principal place of residence is typically exempt from land tax. The money goes to the state to fund community services and projects such as emergency services, healthcare, infrastructure, etc.

Like stamp duty, land tax varies state by state. Click on the links below to better understand land tax in the state where you are intending to buy property.

State-by-State Land Tax:

In addition to land tax, foreign investors who want to invest in residential property in NSW, QLD, VIC and SA are required to pay a foreign ownership surcharge. Again the amount is determined on a state-by-state basis. Click on the links below to discover more information about land tax for foreign investors.

State-by-State Land Tax Surcharge for Foreign Investors:

Council Rates.

Council rates are local government taxes. How much you pay will depend on the value of your property and where it is located.

The money goes to your local council to fund public or community services such as roads, stormwater management, waste management, parks and gardens, immunisation, libraries, community activities, tree planting, pest eradication, etc.

Rates vary by local government councils. Click on the links below to better understand council rates at a state level.

State-by-State Council Rates:

FIRB Approval.

An application fee applies to all foreign investors who want to buy property in Australia unless buying property with an Australian or New Zealand citizen or Australian permanent resident.

The Federal Investment Review Board’s (FIRB) policy is to channel foreign investment into new dwellings or redevelopment, to create additional jobs in the construction industry, help support economic growth, and increase Australia’s housing stock.

Rules and fees apply when applying for approval. To learn more about the FIRB, view our blog post: Who Needs FIRB Approval to Buy Property in Australia and How do I Get It? 

Insurance.

You are not legally required to have home insurance in Australia, however many lawyers and conveyancers recommend you have it.

The risk of damage to the property typically passes from the seller to the buyer as outlined below, according to the state in which the property is located. Of course, this can vary depending on your contract, so it is important to check your contract to see what applies to you.

The buyer is responsible for any damage on settlement:

  • New South Wales
  • Victoria

The buyer is responsible for any damage when contracts are exchanged:

  • South Australia
  • Tasmania
  • Australian Capital Territory

The buyer is responsible for any damage before settlement – on and after 5pm the next business day contracts are exchanged:

  • Queensland

The buyer is responsible for any damage on the date the purchase price is paid or the date they are given possession of the property – whichever comes first:

  • Western Australia
  • Northern Territory

The Maker Difference.

Our buyer’s agents know the ins and outs of all costs associated with buying property and can equip you with the knowledge you need to make informed decisions that work for you.

Whether you are looking for support in hotspots like Sydney, Melbourne, Brisbane, Adelaide, Perth, the Gold Coast, the Sunshine Coast, or in any other city or regional centre in Australia, we have the network to help you realise your property dreams sooner.

Find out more about how we can help you with buying, bidding and relocation – view Our Services

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