The Hidden Costs of Buying Property in Melbourne (and How to Avoid Them)

When most Melbourne buyers calculate what they can afford, they focus on the purchase price. But the truth is, the sticker price is only part of the story. Hidden costs can quietly add tens of thousands of dollars to your bottom line, and if you’re not prepared for them, they can turn a dream home into a financial strain.

Here are the most common hidden costs we see buyers overlook, and how to avoid them.

Stamp Duty (Land Transfer Duty)

In Victoria, stamp duty (officially called land transfer duty) is one of the biggest additional costs. It’s calculated on the dutiable value of your property (usually the purchase price), and it can add a hefty sum on top of what you’ve budgeted.

The good news:

• If you’re a first-home buyer, you may be exempt from paying stamp duty on properties valued up to $600,000, or pay a reduced amount on homes up to $750,000.

• If you’re buying a property as your principal place of residence (not necessarily your first home), you may also qualify for a concession if the property is valued at $550,000 or less.

• The State Revenue Office Victoria has a handy online calculator that lets you estimate your duty before you commit, and it outlines the exemptions and discounts that might apply. You can check it here: SRO Vic Stamp Duty Calculator.

Tip: Before you even start looking, use the calculator to factor duty into your real budget, and make sure you don’t miss out on any exemptions or concessions you’re entitled to.

Building and Pest Surprises

Melbourne’s property market is full of beautiful heritage homes and shiny new apartments, but both can hide problems. From termite damage in older weatherboard houses to water leaks in new apartment towers, repair bills can quickly escalate.

Tip: Always get a professional building and pest inspection. It’s not just a formality, it’s insurance against major financial shocks.

Strata Levies and Special Levies

Apartment living in Melbourne comes with shared costs. Regular strata levies cover maintenance, but it’s the special levies, often raised to fund big repairs like cladding replacement or structural works, that blindside buyers.

Tip: Read the strata records carefully. Look for talk of upcoming works or disputes that might lead to extra fees.

Legal and Contract Traps

Contracts in Victoria are drafted to protect the seller. We often see clauses that shorten cooling-off periods or restrict your rights. If you don’t have an expert review them, you could be signing away protections without even realising.

Tip: Never sign a contract without independent legal advice. A buyer’s advocate or solicitor working solely in your interests will flag risks before you’re committed.

Insurance and Holding Costs

From the day you sign a contract in Victoria, you’re usually responsible for insuring the property. Add to that moving expenses, connection fees, council rates, and owners’ corporation charges, and the ongoing costs can stretch your budget further than expected.

Tip: Plan for these holding costs upfront, not after the fact.

Why It Matters

The true cost of buying in Melbourne isn’t just what you see on the price tag. Between duty, levies, repairs, and legal traps, we’ve seen buyers pay far more than they expected simply because they didn’t know what to look for.

At Turley Property Advocates, our job is to make sure no detail is overlooked. We protect you from financial surprises, uncover hidden risks, and ensure that when you buy, you’re making a confident decision, not an expensive mistake.

Before you buy in Melbourne, have someone in your corner who knows the real costs.

If you’re planning your next purchase, let’s talk.