Buying a home in Melbourne is an exciting yet complex process, and understanding the associated costs is crucial for planning. It’s the first key stage in the buying process. In this article, we will break down the key expenses buyers need to be aware of when purchasing property in Melbourne.
1. Deposit – Typically 10%
A standard home purchase requires a 10% deposit of the property’s purchase price. This amount is usually paid upon signing the contract of sale and is held in trust until settlement. This can be negotiated as part of the transaction and occasionally, you can still make a successful offer with only a 5% deposit.
2. Stamp Duty – Approximately 5%
Stamp duty is a significant cost and varies depending on the property value and whether you are eligible for concessions. In most cases, buyers can expect to pay around 5% of the purchase price in stamp duty. First-home buyers may qualify for exemptions or reductions, so it’s important to check eligibility.
3. Solicitor or Conveyancer Fees
A solicitor and conveyancer ensures all legal aspects of the property transaction are handled correctly. This includes reviewing contracts, conducting title searches, and managing the settlement process. Buyers should budget around $1,500-$3,000 for a professional solicitor or conveyancing service. A solicitor will charge more than a conveyancer, but both can handle the administration to help you successfully secure your home.
4. Building & Pest Inspections – Approximately $700
While not always mandatory, a building and pest inspection is highly recommended, particularly for older properties. These inspections help identify potential structural issues or pest infestations, preventing costly surprises post-purchase.
5. Buyer Agent Fees
Navigating Melbourne’s competitive property market can be challenging, which is why many buyers engage a professional buyer agent.
Some buyers hesitate to engage a buyer’s agent, thinking they’ll save 1-2% in fees. But in a rising market, that decision could cost you 10-30% more when you finally decide to buy.
What’s the Real Cost of Going It Alone?
You risk overpaying or missing out on the best properties without professional guidance. Renovation costs can spiral without expert insight into what’s worth improving.
We know Melbourne’s market inside out. Our job is to protect your time and money and ensure you make a smart decision. Remember, the selling agent does not have your best interests at heart; the seller pays them. We have over 288+ 5-star reviews from happy clients.
We secure off-market opportunities before they hit the public.
We negotiate fiercely to get you the best possible deal.
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Please take a look at our blog to learn more about how much it costs to hire a buyer agent.
Understanding the costs involved in purchasing a home can help you prepare financially and avoid unexpected expenses. If you’re looking for expert guidance to confidently secure your dream home, our team is here to help.
Industry Insider Property is independent and committed to helping buyers and sellers achieve their desired outcomes. Our experienced buyer agents and advisors will guide, execute, and deliver the best possible results to our clients. That’s why we have over 288 5-star Reviews on Google!
Our team will help you save time and share over 40 years of industry knowledge and expertise to ensure you make a wise, well-informed decision.
Contact us at +613 8374 7652 or email us at admin@industryinsider.com.au to discover how we can assist you in your real estate journey.
Industry Insider Property
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+613 8374 7652
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