Common costs of buying property in Australia, New Zealand, and the UK

Purchasing property involves much more than just the hammer price or your initial deposit. Government taxes, legal fees, and administrative charges add up quickly, and they vary enough between Australia, New Zealand, and the UK that a budget built for one country can be badly wrong in another. Here’s how the primary upfront and hidden costs actually break down in each.

Australia (AUD)

Buying property in Australia features high transactional taxes, which are managed at the state level.

• Stamp duty (transfer duty). Typically your largest upfront cost after the deposit. It varies heavily by state and property value, generally tracking between 2% and 5.5% of the purchase price. Most states offer substantial concessions or complete exemptions for first-home buyers up to certain price thresholds — see our stamp duty calculator for state-by-state numbers.
• Conveyancing / legal fees. Expect to pay $1,000 to $3,000 for a solicitor or licensed conveyancer to manage the contract transfer, title searches, and settlement.
• Lenders Mortgage Insurance (LMI). If your deposit is less than 20% of the property value, banks require LMI to protect them against default. This can range from $5,000 to over $20,000, though it’s often capitalised (rolled) into the loan.
• Mortgage registration and transfer fees. State government registration fees for the mortgage and title transfer usually total $300 to $1,000.
• Property inspections. Highly recommended before buying: a building and pest inspection runs $400 to $800, and a strata report for apartments or townhouses adds $250 to $400.

New Zealand (NZD)

Compared to Australia and the UK, New Zealand is unique because it does not charge stamp duty or a land transfer tax on residential property purchases at all. Buyers still face other upfront costs, though.

• Conveyancing and legal fees. Solicitors are legally required to handle property transfers in NZ. Expect $1,500 to $3,000 depending on the complexity of the contract, for example if it involves a KiwiSaver withdrawal.
• Low Equity Premium / Registered Valuation. If your deposit is under 20%, NZ banks charge a Low Equity Margin (added to your interest rate) or a one-off upfront premium. They’ll also require an independent Registered Valuation, costing $800 to $1,500.
• Property reports. A building report runs $500 to $1,000, and a LIM report (Land Information Memorandum, sourced from the local council to check zoning, flooding risk, and building permits) costs $300 to $500.
• Moving and utility connection. Often overlooked — moving trucks or professional movers generally run $500 to $2,500.

United Kingdom (GBP)

The UK property process, applicable mainly to England and Northern Ireland with variations in Scotland and Wales, relies on a tiered tax system and a multi-staged legal process.

• Stamp Duty Land Tax (SDLT). Paid on properties priced over £125,000 for standard buyers, in tiers from 2% to 12% based on purchase price. First-time buyers pay 0% up to £300,000 (as long as the total price doesn’t exceed £500,000), while second homes and buy-to-lets carry a surcharge on top of standard rates. Scotland (LBTT) and Wales (LTT) run their own separate tiered systems — run the numbers for your region in our stamp duty calculator.
• Conveyancing fees. UK legal fees generally run £1,000 to £2,500, plus disbursements (local authority searches, drainage searches, and Land Registry fees) adding roughly £300 to £500.
• Surveyor fees. Different from a basic bank mortgage valuation — a proper structural assessment (Homebuyer Report) costs £400 to £1,500 depending on how comprehensive the survey is.
• Mortgage arrangement & valuation fees. Banks often charge an arrangement fee to book a mortgage deal: a flat £999 to £2,000, or a percentage of the loan.
• Electronic transfer fee. A minor £25 to £50 fee charged by the bank or solicitor to securely transfer mortgage funds between parties on completion day.

Summary comparison

Pro tip across all three countries: set aside an additional 3% to 5% of the total purchase price in cash specifically to cover these transactional “hidden” costs, so you aren’t caught short at settlement.