Buying property is one of the most significant financial commitments most people will ever make. While Brisbane has long been considered a more affordable capital city compared to Sydney and Melbourne, property prices have surged in recent years, making it essential for buyers to fully understand all associated costs of buying a home.
When home buying, many buyers focus solely on the purchase price, but numerous additional expenses can impact affordability. From stamp duty and legal fees to moving costs and ongoing ownership expenses, failing to plan for these can put unnecessary financial strain on new homeowners.
This guide is designed for first-home buyers, property investors, and those looking to upgrade or relocate to Brisbane. By breaking down every cost involved in purchasing a home, we aim to equip you with the knowledge needed to make informed financial decisions and avoid unexpected surprises.
The Purchase Price
Brisbane’s property market has been experiencing rapid growth. CoreLogic’s February 2025 report shows Brisbane dwelling values have increased 10.4% over the past 12 months and 70% over the past five years, highlighting the strong demand for property.
Current Market Trends
- Median dwelling value: $893,592
- House prices: Increased by 9.4% in the past year, up 70% in five years
- Unit prices: Surged by 15.8% over the last 12 months
Factors That Influence Home Prices in Brisbane
- Proximity to the CBD: Ask any real estate agent, and they’ll agree that suburbs closer to the city often have higher prices due to demand.
- Public Transport and Infrastructure: Well-connected areas with train stations or major road infrastructure see faster price growth.
- School Catchment Zones: Properties in sought-after school zones often command a home-buying premium.
- Market Conditions: Economic factors, employment rates, and population growth influence pricing trends.
Home Buying Deposit Requirements
The big question – how much deposit will you need to save? It’s often one of the biggest hurdles to home buying.
Typical Deposit Amounts
- 20% deposit: Recommended to avoid Lenders Mortgage Insurance (LMI) and secure better loan terms.
- 10% deposit: More accessible but requires LMI, which can add thousands to the cost.
- 5% deposit: Possible under certain government schemes but often comes with stricter lending conditions.
Government Assistance for First-Home Buyers
- First Home Owner Grant (FHOG): This program offers up to $15,000 to eligible first-home buyers purchasing new properties under $750,000.
- First Home Guarantee: Allows first-home buyers to purchase with only a 5% deposit without paying LMI.
- Shared equity schemes: Some buyers can enter co-ownership programs to lower upfront buying costs.
Tips for Saving for a Deposit Faster
- Set a monthly savings goal: Automate savings to a separate account.
- Reduce discretionary spending: Cut back on luxury items and entertainment.
- Consider a high-interest savings account: Maximise returns on savings.
- Look into financial assistance from family: A guarantor loan can reduce deposit requirements.
Loan Costs and Mortgage Fees
Beyond the home-buying deposit, several fees are associated with securing a mortgage.
Interest Rates and Loan Repayments
Interest rates can significantly impact affordability. Buyers should compare:
- Fixed rates (offering stability)
- Variable rates (offering flexibility but potential increases)
Common Home Loan Fees
- Loan application fees: $150 – $990
- Valuation fees: $200 – $500
- Annual package fees: $300 – $400
- Break fees (for fixed loans): Can be thousands if repaid early
- Offset account fees: Some banks charge ongoing fees for mortgage offset accounts.
Stamp Duty and Other Government Fees
Stamp duty is a government-imposed tax that varies depending on the property’s purchase price, state or territory, and buyer eligibility for concessions or exemptions. Each state and territory has its own rates and thresholds, making it essential for buyers to check the latest costs in their location.
Stamp Duty in Queensland*
$500,000 property: Stamp duty is nil (for first home-buyers); $8,750 (for home-buyers); and $15,925 (for investors).
$750,000 property: Stamp duty typically Stamp duty is $10,925 (for first home-buyers); $19,600 (for home-buyers); and $26,775 (for investors).
$1,000,000 property: Stamp duty is $30,850 (for all home-buyers); $8,750 (for home-buyers); and $38,025 (for investors). *addiitional stamp duty applies to foreign buyers
Ways to Reduce Stamp Duty
There are several ways to reduce stamp duty costs. First-home buyers may be eligible for a concession if purchasing a property under $550,000, significantly lowering their upfront expenses. Additionally, transfer fees and registration costs, typically between $1,000 and $2,000, should be factored into the overall budget when planning for property-related expenses.
Buyer’s Agent Fees
A buyer’s agent can help navigate the purchase process for both home-buyers and investors.
Typical Costs
- Fixed fee: $13,000 – $25,000
- Percentage-based fee: 1.5% – 3% of purchase price
While these fees add to upfront costs, a buyer’s agent may often negotiate better deals and identify suitable properties more efficiently.
Benefits of Using a Buyer’s Agent
- Access to off-market properties
- Negotiation expertise
- Time-saving in property searches
- Objective investment advice
Legal and Conveyancing Costs
A conveyancer or solicitor plays a critical role in the home-buying process, ensuring that the transaction is legally sound. They handle all necessary legal paperwork, contract of sale reviews, and settlement procedures to protect the buyer’s interests.
What Conveyancers and Solicitors Do
- Contract Review: Ensure there are no unfair clauses or hidden liabilities.
- Title Search: Verify ownership and check for encumbrances or caveats.
- Property Settlement: Coordinate the transfer of ownership and funds between parties.
- Legal Advice: Provide guidance on legal responsibilities and obligations.
Typical Costs for Legal Services
Legal fees can vary based on complexity, property value, and whether additional legal work is required:
- Conveyancing fees: $800 – $2,500
- Searches: $200 – $500
- Disbursements (government fees, bank fees, etc.): $300 – $800
- Additional legal consultation (if required): $200 – $500 per hour
Other Due Diligence Costs
To ensure the property meets all legal and regulatory requirements, buyers may need to conduct additional due diligence:
- Building Approvals Check: Confirm all structures comply with local council regulations.
- Zoning and Planning Search: Verify land use restrictions and future development potential.
- Easement and Encumbrance Checks: Identify any legal limitations on the property’s use.
- Strata Reports (for apartments and townhouses): Review the building complex’s financial health and maintenance records.
Failing to complete these checks can result in costly legal disputes or unexpected property limitations. Buyers should always engage a qualified legal professional to navigate these complexities and ensure a smooth settlement process.
Moving and Setup Costs
Whether hiring professional movers or opting for a DIY move, buyers should know all associated costs to ensure a smooth transition when relocating to a new property.
Hiring Professional Movers vs. DIY Moving
- Professional Movers: Hiring a moving company provides convenience but comes at a cost. Prices typically range from $1,500 to $5,000, depending on the distance and volume of belongings.
- DIY Moving: Renting a truck or trailer can be more affordable, with costs around $100 to $500, but requires more effort and planning.
Connection Fees for Utilities
Setting up essential services in a new home comes with connection fees. Typical costs include:
- Electricity and Gas: $50 – $100 per connection
- Water Supply: Some utility providers charge a reconnection fee of $30 – $100
- Internet and Phone Services: Setup fees range from $50 – $300, depending on the provider and plan.
Additional Cleaning Costs
Sellers are not legally required to have the property professionally cleaned before settlement. As a result, buyers may need to hire cleaners before moving in.
- Professional Cleaning Service: $150 – $1,000, depending on property size.
- Carpet Cleaning: $100 – $300 if deep cleaning is required.
Costs of New Furniture and Appliances
A new home often requires new furniture, appliances, and décor. Estimated costs include:
- Basic Furniture Package (sofa, dining table, bed, etc.): $5,000 – $10,000
- Major Appliances (fridge, washing machine, dishwasher, etc.): $3,000 – $8,000
- Additional Décor & Homeware: $1,000 – $3,000
Temporary Accommodation Costs
If settlement dates don’t align with moving plans, temporary housing may be necessary.
- Short-Term Rentals/Airbnb: $200 – $400 per night
- Storage Units for Furniture: $150 – $400 per month, depending on unit size
Proper budgeting and planning for these moving-related expenses can help buyers transition into their new homes smoothly without unexpected financial strain.
Ongoing Homeownership Costs
Owning a home comes with many ongoing expenses beyond mortgage repayments. Budgeting for these costs is essential to maintaining the property’s value and ensuring financial stability.
Council Rates and Water Charges
Local governments charge council rates to fund community services such as waste management, road maintenance, and public facilities. These rates vary based on property location, size, and value. In Brisbane, homeowners can expect to pay:
- Council rates: Typically range from $1,500 – $3,000 per year, depending on property value and location.
- Water charges: Costs vary based on water consumption, with quarterly bills averaging $300 – $600 for a standard household.
Strata Fees (For Apartments and Townhouses)
If you purchase a unit or townhouse within a body corporate-managed complex, you’ll need to pay strata fees (also called body corporate fees). These cover shared expenses such as building maintenance, insurance, and amenities (e.g., pools, gyms, gardens).
- Basic complexes: $2,000 – $4,000 per year
- Premium buildings with high-end amenities: $5,000 – $10,000+ per year
Buyers should review the body corporate financials before purchasing to assess any upcoming levies or maintenance costs.
Home Insurance and What It Covers
Home insurance is essential for protecting against damage, theft, and unforeseen disasters. There are two main types:
- Building insurance: Covers structural damage from fire, storms, or accidents (required by lenders for mortgaged homes).
- Contents insurance: Protects belongings inside the home, such as electronics, furniture, and valuables.
Annual premiums vary based on property value, location, and coverage level but typically range from $1,200 – $3,500 per year.
Maintenance and Repair Costs
Every home requires ongoing maintenance to remain in good condition. Even with a thorough building inspection and pest inspection, some defects only become apparent after moving in. Homeowners should budget for:
- General maintenance (e.g., lawn care, cleaning gutters): $500 – $1,500 per year
- Painting and minor renovations: $5,000 – $10,000 every 5-10 years
- Roof repairs: $3,000 – $8,000, depending on the extent of damage
- Garden upkeep and landscaping: $1,000 – $5,000 per year, especially for larger properties
- Emergency repairs (plumbing, electrical, heating/cooling issues): $500 – $2,500 per year
Unexpected Repairs and Wear-and-Tear
Even newer homes can develop issues over time. Some common hidden costs include:
- Termite damage or pest infestations
- Leaking pipes or hidden water damage
- Aging appliances that require replacement
- Foundation movement or structural concerns
Setting aside an emergency maintenance fund of at least 1-2% of the home’s value per year can help cover unexpected expenses without financial strain
Hidden Costs Buyers Often Forget
Beyond the obvious expenses, there are several hidden costs of buying a home that many homebuyers overlook when budgeting for homeownership.
Mortgage Offset and Redraw Fees
Many home loans offer features like mortgage offset accounts and redraw facilities, which can help reduce interest payments or provide flexibility. However, these often come with fees:
- Offset account fees: $5 – $20 per month, depending on the lender.
- Redraw fees: Some lenders charge $50 – $300 per redraw or set limits on how often funds can be accessed.
Land Tax (For Investors and High-Value Properties)
Land tax is a recurring cost that applies to investment properties and higher-value homes. In Queensland:
- For individuals: No land tax on properties under $600,000 in total land value. For land holdings above this, rates start at $500 per year and increase progressively.
- For companies and trusts: Land tax applies to holdings over $350,000.
Investors should calculate potential land tax liabilities when planning property purchases.
Costs of Renovations and Improvements
Many buyers plan to renovate their homes after purchase, but these costs can quickly add up. Common renovation expenses include:
- Kitchen remodel: $10,000 – $30,000
- Bathroom renovation: $8,000 – $20,000
- Landscaping and fencing: $5,000 – $15,000
- Flooring replacement: $3,000 – $10,000
Even minor upgrades like painting or fixture replacements can add thousands in unexpected costs.
The Financial Impact of Interest Rate Rises
Interest rates fluctuate over time, directly impacting mortgage repayments. A 1% increase in interest rates on a $500,000 home loan can add approximately $250 – $400 per month in repayments. Buyers should:
- Consider locking in a fixed-rate loan if they prefer stability.
- Use mortgage calculators to assess affordability under different interest rate scenarios.
- Maintain an emergency fund to manage potential repayment increases.
Renting vs. Buying in Brisbane: A Cost Comparison
The Average Rent vs. Mortgage Repayment
- Average weekly rent for houses: $600 – $750
- Average weekly rent for apartments: $450 – $600
- Average weekly mortgage repayment (based on a $600,000 loan): $580-700
While renting offers flexibility, mortgage repayments contribute to property ownership, potentially leading to long-term financial benefits.
When Buying Becomes More Financially Viable Than Renting
- If mortgage repayments are similar to or lower than rent.
- When property values are expected to rise, increasing equity.
- If government incentives and tax benefits offset ownership costs.
- When long-term financial stability and asset-building outweigh the flexibility of renting.
Investment Considerations
Rental Yields and Capital Growth Potential
- Brisbane rental yields: 3-4% for houses, 4.5-5.5% for apartments.
- Capital growth: Historically strong, with values increasing 70% over the last five years.
Vacancy Rates and Tenant Demand
- Current vacancy rate in Brisbane: Below 1.5%, indicating strong rental demand.
- High-demand suburbs: Inner-city and lifestyle-oriented areas attract more tenants.
Tax Implications (Negative Gearing, Capital Gains Tax)
- Negative gearing: Tax deductions for investors with rental losses.
- Capital gains tax (CGT): This applies when selling an investment property at a profit.
How to Budget and Plan for a Home Purchase
Buying a house is a significant financial commitment, and careful planning is essential to ensure a smooth purchasing process. Here’s how to budget and prepare for a home purchase.
How to Calculate Your Borrowing Power
Your borrowing power is determined by several factors, including your income, expenses, existing debts, and credit score. To estimate your borrowing capacity:
- Use online mortgage calculators to get an initial estimate.
- Speak to a mortgage broker or lender for a more accurate assessment.
- Consider how much you can comfortably afford rather than just the maximum amount you can borrow.
- Factor in additional costs of buying a home, such as stamp duty, conveyancing fees, and moving expenses.
Budgeting for Upfront and Ongoing Costs
Create a detailed budget that accounts for both one-time and recurring expenses:
- Upfront Costs:
- Deposit (5% – 20% of the purchase price)
- Stamp duty and government fees
- Legal and conveyancing costs
- Building and pest inspections
- Moving and setup costs
- Ongoing Costs:
- Mortgage repayments
- Council rates and utilities
- Home and contents insurance
- Maintenance and repair costs
- Strata fees (if applicable)
Tips for Saving for a Deposit Faster
Saving for a deposit is one of the biggest challenges for homebuyers. Here are some effective strategies:
- Set a Savings Goal: Determine how much you need to save and set a timeline.
- Reduce Unnecessary Expenses: Cut back on non-essential spending such as dining out, subscriptions, and luxury purchases.
- Use a High-Interest Savings Account: Keep your deposit savings in an account with a competitive interest rate.
- Consider Government Assistance Schemes: First-home buyers may be eligible for grants, stamp duty concessions, or shared equity schemes.
- Increase Your Income: Look for additional income sources such as freelance work, side businesses, or investment returns.
Importance of Financial Buffers for Unexpected Expenses
Homeownership comes with unexpected costs, so having a financial buffer is essential. Consider:
- Setting aside 3-6 months’ worth of living expenses as an emergency fund.
- Budgeting for potential interest rate increases to ensure mortgage repayments remain manageable.
- Preparing for unexpected repairs or maintenance, such as plumbing, electrical, or structural issues.
Conclusion
Buying a house in Brisbane is more than just meeting the listing price. From stamp duty and loan fees to ongoing costs and hidden expenses, it’s important to budget for every aspect.
By being well-informed and financially prepared, buyers can confidently enter the market and make smart, long-term investments in their future. If you’re uncertain, seeking professional advice from buyer’s agents, mortgage brokers, and financial planners can make the process smoother and more rewarding.
Disclaimer: The costs and financial estimates provided in this article are approximate and intended for general informational purposes only. Actual expenses may vary based on individual circumstances, property location, and market conditions. Readers should conduct their own research and seek professional advice from financial advisors, mortgage brokers, or legal experts before making any financial decisions related to purchasing a home.
