Guide · First home buyers
The Real Upfront Cost of Buying a House in NSW
Almost everyone budgets for the deposit and forgets the rest. Then the costs on top land all at once and the maths gets tight. Let's lay out every upfront cost of buying a house in NSW, so nothing catches you out at settlement.
Your deposit is the big one, but it's not the only cash you need to buy a home. There's a stack of costs that hit around exchange and settlement, and if you haven't planned for them they can derail an otherwise solid purchase. The good news is they're all knowable in advance, so you can budget for them precisely rather than get surprised. Here's the full list for a NSW purchase.
The big one: stamp duty
Stamp duty, officially transfer duty, is usually the largest cost after your deposit, and for many buyers it's thousands of dollars. The important news for first home buyers in NSW is that concessions can wipe it out or cut it right down. Eligible first home buyers may pay no transfer duty up to a set property value, with a sliding concession applying up to a higher value before full duty kicks in. Those thresholds get reviewed over time, so rather than quote a figure that might date, I'd check exactly where your price sits when you're ready. For everyone else, it's a cost to budget for in full.
First home buyer? Check this first
The stamp duty concession is often the single biggest saving available to a first home buyer, worth far more than most grants. Whether you qualify depends on the price, your residency and whether you've owned before. It's the first thing I check, and I run through it in the first home buyer schemes guide.
The costs that add up around it
| Cost | What it covers | Rough range |
|---|---|---|
| Conveyancing / solicitor | The legal work of transferring the property | $1,000 to $2,500 |
| Building and pest inspection | Checking the property's condition before you buy | $400 to $800 |
| Strata report | Reviewing the books if it's an apartment | $200 to $500 |
| Loan and valuation fees | Some lenders charge setup or valuation fees | $0 to $800 |
| Council and water adjustments | Reimbursing the seller for prepaid rates | Varies |
| Moving and connections | Removalists, utilities, the first few weeks | $500 to $3,000 |
4-5%
of the price is a common buffer for costs if you pay full stamp duty
$0
stamp duty possible for eligible NSW first home buyers under the cap
6 mths
living in the home is often required to keep a concession
Leave a buffer, don't spend to the dollar
Draining every cent into the purchase is a mistake. Lenders like to see you have some funds left after settlement, and you'll want a cushion for the unexpected in those first few months. Budget the costs, then keep a buffer on top. It's part of buying from a position of strength rather than stress.
Add it all up and, if you don't qualify for a stamp duty concession, it's sensible to set aside roughly 4 to 5 percent of the purchase price for costs on top of your deposit. If you do qualify as a first home buyer, it can be far less. The exact number depends on your price, your lender and whether concessions apply, so I'll give you a precise figure for your budget before you start inspecting. It pairs naturally with the deposit guide and understanding your borrowing power.
Want an exact cost breakdown?
Tell me your target price and suburb, and I'll map every upfront cost so you know the real cash you need.
Frequently asked questions
How much money do I need upfront to buy a house?
Your deposit plus costs. If you pay full stamp duty, a common guide is to have around 4 to 5 percent of the purchase price on top of the deposit for costs like duty, conveyancing and inspections. Eligible first home buyers who qualify for a stamp duty concession can need much less. I can give you an exact figure for your price range.
Do first home buyers pay stamp duty in NSW?
Eligible first home buyers may pay no transfer duty up to a set property value, with a reduced rate applying on a sliding scale above that before full duty applies. The thresholds and eligibility rules change over time, so it's best to confirm where your purchase sits rather than assume. It's often the biggest saving available, so it's worth checking early.
What costs do people forget when buying a home?
The usual ones people miss are conveyancing fees, building and pest inspections, strata reports for apartments, council and water rate adjustments, and moving costs. Individually they seem small, but together they add up to thousands. Budgeting for them up front, plus a buffer, keeps settlement calm instead of stressful.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
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