Costs of buying a house in QLD (2024 edition)

Do you want a more accurate understanding of all the costs associated with purchasing a home in Queensland?

This article will help you understand the precise expenditures you should budget for when making a purchase.

To help you determine what kind of home you can afford, this provides thorough breakdowns of all the one-time and recurring expenses that you need account for in your budget.

First, let's examine all of the up-front expenses related to purchasing a home in Queensland.

Upfront costs of buying a house in QLD

Like other states in Australia, there are a number of upfront costs involved with buying a house in Queensland that we’ll highlight below.

Costs of stamp duty in Queensland

Transfer duty, aka "stamp duty", is a government tax on a property transaction when you sell, buy, or transfer property in Queensland. It’s most often the largest cost you’ll incur when buying a property, so it’s important to know how much you will owe. You can use an online stamp duty calculator for an idea how much this could be.

For a property worth $500,000, and assuming you’re not a first time buyer, you will pay transfer duty of $8,750. There is currently a concession on stamp duty for first home buyers in Queensland for homes valued under $550,000, which means you pay nothing if you meet the criteria.

Lenders Mortgage Insurance (LMI)

If you don’t have a big enough deposit - normally 20 per cent, many lenders will require you to pay lender's mortgage insurance (LMI). This one-off lump sum is to protect the bank if you default, or can’t pay back the loan.

For example, for a first time buyer in Queensland with a deposit of $10,000 on a $500,000 property, you would need to pay LMI of $16,713.

Conveyancing fees in QLD

A conveyancer is a legal service when it comes to purchasing a property in Queensland. They take care of much of the paperwork, including conducting searches, arranging, negotiating, and reviewing the contract of sale, as well as overseeing the change of title.

Expect the legal fees for buying a house in Queensland to cost anywhere from $850 to $1450, depending on the complexity of the sale. There may also be disbursements, or expenses they incur, which they will bill for separately. These can include things like conducting a title search or paying the land tax on your new property.

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Building and pest inspection costs

The purpose of a building inspection is to verify whether the asset you are going to buy is safe and sound structurally. If there was or is activity from termites at the property, it can be determined via a pest or termite inspection. A certified building inspector conducts both inspections.

Based on a freestanding family home, a combined building and pest inspection in Queensland should cost between $400 and $500.

Mortgage insurance in Queensland

Your Queensland home loan provider may demand that you pay lender's mortgage insurance (LMI) if you are borrowing more than 80% of the property's worth. This cost covers them in the event that you are unable to make your scheduled mortgage payments and serves to mitigate the risk of the loan. Rather than being paid in whole, it's typically incorporated into your recurring mortgage instalments.

For instance, the LMI in Queensland would be $16,751 if you were a first-time home buyer purchasing a $500,000 property with a $10,000 deposit.

Mortgage application fee

The mortgage or home loan application fee is a charge by a lender for processing your application and preparing all the documentation. Many lenders will waive it to get you to sign with them, but if they don’t, expect to pay in the region of $180 in Queensland.

Valuation fee

Lenders will often have the property you are planning on purchasing professionally valued. This is to confirm the final loan amount. Expect a property valuation in Queensland to cost around $200, though some lenders will charge it together with your mortgage application fee.

Registration of title

You are required to register your mortgage against the title of the property, so it can be viewed in a title search. This identifies that the property is held as security against your home loan. Since 1st August 2021, this fee is $195 in Queensland, and is typically payable to your home loan provider.

Home and contents insurance costs

Your house and belongings are protected by insurance against theft, accidents, and a variety of unanticipated circumstances, such as severe weather. According to Finder's research, the average monthly cost of building and contents insurance in Queensland is $150, while building-only insurance costs $125. This amount is based on a standalone, three-bedroom house. Keep in mind that if you live in northern Queensland—where cyclones strike frequently—your house insurance costs will go up.

Now let's take a look at some ongoing or recurrent expenses you should plan for once you move in.

Understand the ongoing costs after buying a home

Remember to account for all of the recurring expenses that come with owning a property after the initial outlay. These could have quarterly, weekly, monthly, or annual deadlines.Your monthly house loan payments come first. Based on your home loan amount, mortgage length, and interest rate, you may use a mortgage payback calculator to estimate these ahead of time.

In Queensland, your monthly repayments for a $500,000 house loan with a 2.42 percent interest rate over 25 years would come to about $2,233.

Depending on its state, your new house can also require renovations. This could be more complicated, such as remodelling a kitchen or bathroom, or more reasonably priced (cosmetic). For cosmetic projects, your improvements might cost a few thousand dollars, while major, whole-room renovations might cost tens of thousands. In addition, there can be general upkeep and repair tasks surrounding your new home, such as minor paint touch-ups or roof tile replacements. These are probably not going to be worth more than a few thousand dollars.

Next up are all your utilities, like your monthly or quarterly electricity, water, and internet services. The average Brisbane electricity bill is $1,334 per year - based on average usage in a 4 bedroom, 2 bathroom home. According to Canstar Blue research, you can expect a water rate in the region of $56 per quarter in Brisbane. They also researched internet costs around the country and found NBN internet in Queensland to be around $72 a month for a mid-tier connection.

Now that you are more aware of all the expenses related to purchasing a home in Queensland, you will be able to plan your purchase and create a budget for them all.