Buying Your First Home: Costs People Often Forget to Budget For (FAQ)
Most first home buyers plan for the deposit and repayments — but it’s usually the overlooked costs that cause stress later.
Here are some of the most common budgeting questions buyers ask, with clear answers to help you prepare properly.
Is the deposit the only upfront cost I need to plan for?
No. The deposit is just one part of the upfront cost.
Many buyers are surprised to learn there are additional expenses before and at settlement, including legal fees, inspections, loan costs, and sometimes stamp duty.
Do I always have to pay stamp duty?
Not always.
Some first home buyers qualify for stamp duty exemptions or concessions, depending on the state, property price, and property type. However, these aren’t automatic.
If stamp duty does apply, it can add thousands to your upfront costs, so it’s important to check early.
What legal costs should I budget for?
Buying a home involves contracts, searches, and settlement paperwork.
You’ll usually need to budget for conveyancing or solicitor fees, which are required before or at settlement and are often overlooked in early budgeting.
Are building and pest inspections really necessary?
Yes — and they’re often forgotten in the budget.
While they may feel like an extra expense, inspections can protect you from far more expensive issues after settlement, such as structural problems or pest damage.
Are there loan-related fees I should know about?
Depending on the lender and loan type, there may be fees involved.
These can include application or establishment fees, valuation costs, and settlement-related charges. Not every loan has them, but it’s important to factor them in if they apply.
When do I need to pay for insurance?
Earlier than most people think.
Many lenders require building insurance to be in place once contracts are unconditional — not after settlement. This is a cost that often catches first home buyers off guard.
What moving costs should I plan for?
Moving costs add up quickly.
Removalists, truck hire, cleaning, packing materials, and even taking time off work can all impact your budget around settlement.
Do utility connections really cost much?
Individually, they’re usually small — but combined they add up.
Electricity, gas, internet, and water connections can all involve setup fees that buyers often forget to allow for.
Should I budget for furniture and upgrades?
Most buyers end up spending money after settlement, even if the home is move-in ready.
Furniture, appliances, window coverings, and small repairs are very common post-purchase expenses and should be planned for where possible.
What ongoing costs will I have as a homeowner?
Owning a home comes with ongoing costs that renters may not be used to.
These can include council rates, water rates, strata fees (if applicable), insurance, and maintenance. Factoring these into your budget helps ensure repayments remain comfortable long-term.
How can I make sure I don’t miss anything?
The easiest way is to look at the full picture before you buy.
A short planning conversation can help you understand all the upfront and ongoing costs involved, so you’re not caught off guard later.
