Property Purchase Cost Calculator

The purchase price of an investment property gets all the attention, but it is only part of what you actually pay. By the time you have covered stamp duty, legal fees, inspections, and loan costs, the total bill can be 5 to 7 per cent higher than the price you agreed with the vendor.

On a $700,000 property, that means $35,000 to $49,000 in additional costs on top of the purchase price. If you are borrowing more than 80% of the property's value, Lenders Mortgage Insurance can push that figure even higher.

These costs are not optional or negotiable. They are a fixed part of buying property in Australia, and they need to be in your budget from the start. Too many buyers focus on scraping together a 20% deposit without accounting for the extras, then find themselves short at settlement.

Unlike your ongoing holding costs (mortgage interest, rates, insurance, maintenance), most of these upfront costs are not tax-deductible in the year you pay them. Stamp duty goes onto your cost base for capital gains tax purposes when you eventually sell. Borrowing expenses like loan establishment fees and LMI are deductible, but they are spread over five years rather than claimed upfront.

Understanding the full picture before you buy means no surprises at settlement and a realistic view of your total outlay. If you are planning your first investment property purchase, factor these costs into your budget alongside the deposit.

Stamp duty (called transfer duty in some states) is a state government tax on property purchases. It is calculated as a percentage of the purchase price or the property's market value, whichever is higher. For investment property buyers, stamp duty is almost always the single largest upfront cost.

Each state and territory has its own stamp duty rates and thresholds, and the differences are significant:

• NSW — on a $700,000 investment property, stamp duty is approximately $27,000 to $28,000. NSW also applies a surcharge for foreign buyers.
• Victoria — stamp duty on $700,000 is roughly $37,000 to $38,000. Victoria tends to be one of the more expensive states for stamp duty.
• Queensland — approximately $18,000 to $19,000 on a $700,000 purchase. Queensland's rates are generally lower than NSW and Victoria.
• South Australia — roughly $31,000 to $32,000 on $700,000.
• Western Australia — approximately $26,000 to $27,000 on $700,000.

No concessions for investors. First home buyer stamp duty concessions and exemptions do not apply to investment properties. If you are buying a property to rent out, you pay the full investor rate in every state. This is true even if it is the first property you have ever purchased, as long as you are not going to live in it as your principal place of residence.

Stamp duty is not tax-deductible as an expense. Instead, it becomes part of your property's cost base, which reduces your capital gains tax liability when you eventually sell. For a state-by-state breakdown of rates and thresholds, use our stamp duty calculator.

Stamp duty is typically due at or before settlement. Some states offer deferrals or instalment plans, but these are not widely available for investment purchases. Budget for it as a lump sum you will need on the day.

Beyond stamp duty, a stack of smaller costs add up quickly. Here is what to expect.

Conveyancing or solicitor fees: $1,500 to $3,000. Your conveyancer handles the legal transfer of the property. They review the contract of sale, conduct title searches, handle the exchange and settlement process, and manage the financial adjustments (rates, water, strata levies) between you and the seller. Some conveyancers charge a flat fee, while solicitors may charge hourly. Either way, do not skip this cost. A missed contract clause or title issue can cost you far more than the conveyancing fee.

Building and pest inspection: $500 to $800. A combined building and pest inspection before you buy identifies structural defects, termite damage, rising damp, and other issues that could mean expensive repairs down the line. For investment properties, this inspection helps you budget realistically for ongoing maintenance costs. Skipping it to save a few hundred dollars is a false economy.

Loan application or establishment fee: $0 to $600. Some lenders charge an upfront fee to process your loan application. Many have dropped this fee to attract borrowers, but it still exists at some banks and credit unions. Check with your lender before you apply.

Title search and registration fees: $100 to $300. Your conveyancer will conduct a title search to confirm ownership details and check for any encumbrances on the property. Title registration fees are charged by the state land titles office to register your ownership.

Mortgage registration fee: $150 to $200. This is the fee to register your lender's mortgage against the property title. It is a standard government charge and varies by state.

Valuation fee: $0 to $600. Your lender may require a formal property valuation before approving the loan. Some lenders cover this cost, while others pass it on to you. A full valuation by a licensed valuer costs $300 to $600.

All of these loan-related costs, including the application fee, mortgage registration, and valuation fee, are classified as borrowing expenses for tax purposes. If they total more than $100, you spread the deduction over five years or the loan term, whichever is shorter.

Lenders Mortgage Insurance is the cost that catches many buyers off guard. If your deposit is less than 20% of the purchase price, meaning your loan-to-value ratio exceeds 80%, most lenders will require you to pay LMI.

LMI protects the lender (not you) against the risk of you defaulting on the loan. Despite protecting the lender, you pay the premium. And it is not cheap.

How much does LMI cost? The premium depends on the loan amount, the LVR, and the insurer. As a rough guide:

• On a $560,000 loan (80% of $700,000), LMI is zero because you are at the 80% threshold.
• On a $595,000 loan (85% LVR), LMI might be $8,000 to $12,000.
• On a $630,000 loan (90% LVR), LMI could be $18,000 to $28,000.
• On a $665,000 loan (95% LVR), LMI can reach $30,000 to $40,000 or more.

The jump in cost is steep as LVR increases. Going from an 85% LVR to a 90% LVR can more than double the LMI premium.

Can LMI be capitalised? Yes. Most lenders allow you to add the LMI premium to your loan balance rather than paying it upfront in cash. This means you do not need to find the money on settlement day, but you will pay interest on it for the life of the loan. On a $20,000 LMI premium capitalised over 30 years at 6.5%, you would pay roughly $25,000 in interest on top of the original premium. That is $45,000 total for the privilege of having a smaller deposit.

Is LMI tax-deductible? Yes, for investment properties. LMI is treated as a borrowing expense and deducted over five years or the loan term, whichever is shorter. It is not an immediate deduction in the year you pay it. For details on how to claim it correctly, see our guide to borrowing expenses on investment properties.

If you can reach a 20% deposit by saving a little longer or accessing equity from an existing property, avoiding LMI can save you tens of thousands of dollars. It is one of the most significant financial decisions in the purchase process.

Here is what a realistic purchase looks like in NSW for a $700,000 investment property, assuming a 20% deposit ($140,000) and no LMI.

• Purchase price: $700,000
• Stamp duty (NSW): $27,490
• Conveyancing fees: $2,200
• Building and pest inspection: $650
• Loan establishment fee: $400
• Title search and registration: $250
• Mortgage registration fee: $175
• Valuation fee: $400

Total upfront costs (excluding deposit): approximately $31,565

Added to your $140,000 deposit, you need roughly $171,565 in available funds to complete this purchase. That is 24.5% of the purchase price, not the 20% many people plan for.

What if you only have a 10% deposit? With a $70,000 deposit and a $630,000 loan (90% LVR), LMI of around $20,000 to $25,000 enters the picture. Even if capitalised, your total outlay at settlement still includes the deposit plus all the other costs above, bringing your cash requirement to around $101,000 to $106,000. And you will be paying interest on a larger loan that includes the capitalised LMI.

In Victoria, the same $700,000 property would attract approximately $37,000 in stamp duty instead of $27,490, pushing total upfront costs above $41,000 before LMI. State choice makes a meaningful difference to your entry cost.

These figures are estimates based on typical rates in 2026. Your actual costs will vary depending on your lender, conveyancer, and the specifics of the property. But the pattern holds: budget 5 to 7% on top of the purchase price for a standard investment purchase with a 20% deposit, or more if LMI is involved.

Knowing the full cost upfront means you can plan your finances accurately and avoid scrambling for extra funds in the weeks before settlement. For a detailed look at the ongoing costs that start after you get the keys, see our breakdown of what it costs to own a rental property in Australia.