KEY TAKEAWAYS: The purchase price isn’t the full cost Stamp duty, conveyancing fees, inspections, lender costs, and settlement adjustments can add tens of thousands of dollars to the true cost of buying property in NSW. Some costs arise before exchange and at settlement Many expenses — such as contract reviews, inspections, insurance, and settlement adjustments — occur earlier than buyers expect, so budgeting ahead is critical. Early conveyancing advice can prevent costly surprises A NSW conveyancer helps identify hidden costs, explain legal and strata risks, and ensure buyers understand their financial obligations before committing to the purchase. When buying property in NSW, most buyers focus on the purchase price and deposit. However, there are many hidden costs when buying property in NSW that can catch buyers off guard — particularly first home buyers. Understanding these costs early can help you budget accurately, avoid delays, and reduce stress throughout the conveyancing process. Below is a breakdown of the most common property buying costs in NSW from a buyer’s perspective. 1. Stamp Duty on Property Purchases in NSW Stamp duty (also known as transfer duty) is one of the highest additional costs when buying property in NSW. Calculated based on the property price or market value Payable within strict timeframes after contracts are exchanged Can add tens of thousands of dollars to the total purchase cost Some first home buyers may qualify for stamp duty exemptions or concessions, but eligibility depends on things such as property type and value and individual circumstances. 2. Conveyancing Fees and Legal Costs Professional conveyancing is a necessary cost when purchasing property in NSW. Conveyancing fees may include: Pre-purchase contract review Full conveyancing services from exchange to settlement Government searches and certificates Low-cost conveyancing services may appear attractive, but inadequate contract reviews can expose buyers to significant financial risk. 3. Building and Pest Inspection Costs Building and pest inspections are not legally required, but they are strongly recommended. These reports can uncover: Structural defects Pest infestations Unapproved or non-compliant building works Inspection costs are paid upfront and form part of the hidden costs of buying a house in NSW, however they can save you a lot of money in the long run. 4. Strata Report Costs (Units & Townhouses) If you’re buying a unit, apartment, or townhouse, a strata inspection report is essential. A strata report may reveal: Upcoming special levies Financial issues within the owners corporation Building defects or ongoing disputes Restrictive by-laws Special levies can significantly increase the true cost of purchasing strata property in NSW. 5. Home Loan Fees and Mortgage Expenses In addition to your loan amount, lenders may charge: Loan application or establishment fees Property valuation fees Lenders Mortgage Insurance (LMI) Ongoing loan package or account fees These mortgage-related expenses should be included when calculating the total cost of buying property in NSW. 6. Settlement Adjustments At settlement, buyers must reimburse the seller for prepaid outgoings such as: Council rates Water rates Strata levies Settlement adjustments can add several thousand dollars to the final amount payable and are a common surprise for first-time buyers. 7. Insurance Costs After Exchange In NSW, the risk usually passes to the buyer once contracts are exchanged. Buyers may need: Building insurance Contents insurance Additional cover not included under strata insurance Insurance costs should be factored in immediately after exchange, not at settlement. 8. Government Registration Fees Additional government charges include: Transfer registration fees Mortgage registration fees NSW Land Registry Services charges While smaller than stamp duty, these fees are unavoidable when buying property in NSW. 9. Moving and Utility Connection Costs Often overlooked costs include: Removalists Utility connection and disconnection fees Internet and service setup Temporary accommodation if settlement is delayed Why understanding hidden property costs in NSW matters Failing to account for all buying costs can: Push buyers beyond their borrowing capacity Delay settlement Cause financial stress Lead to rushed decisions before exchange Understanding the true cost of buying property in NSW allows buyers to proceed with confidence. How a NSW Conveyancer Can Help Buyers A licensed NSW conveyancer helps buyers: Identify all upfront and hidden costs Review contracts before exchange Explain strata reports and search results Ensure a smooth and compliant settlement Professional conveyancing ensures buyers understand their obligations and avoid costly surprises. 📞 Get in touch with Coutts today to ensure your next move is informed, compliant, and future-ready. Schedule an Appointment Now ABOUT KAY VITOGIANNIS: Kay joined the Coutts team in May 2021 working as a Licensed Conveyancer within our Property & Conveyancing team, based in our Narellan office. Kay has over 20 years of experience in the Legal industry. She began her journey in CBD Conveyancing firms as a secretary and attained her Advanced Diploma in Conveyancing in December 2010. For further information please don’t hesitate to contact: Kay Vitogiannis Licensed Conveyancer info@couttslegal.com.au 1300 268 887 Contact Coutts today. This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you. Contact Us