Helpful Guides

Don’t let unexpected costs catch you by surprise – A guide to how much it REALLY costs to buy a property in South Australia


Written by Ching Cao, May 2018
In addition to the purchase price, many people who purchase properties for the first time are not aware of the other costs payable when you buy a property. Below are four of the biggest costs that you may have to pay.
• Stamp duty
What is it? This is a tax payable to the government and usually the biggest cost besides the actual purchase price.
Do I have to pay it? Most likely – almost every property purchase attracts stamp duty.
How much is it? This depends on a number of factors, such as the purchase price, how the property is used (e.g. commercial, residential), whether you are a foreigner etc. There are also concessions available for certain purchases.
For example, the stamp duty on the purchase of a $500,000 residential property (that is not new) by a non-foreigner is currently $21,330.
• Transfer lodgement cost
What is it? Your ownership to a property is evidenced by a document called the ‘certificate of title’. To obtain this certificate, the conveyancer lodges a land transfer document with the government. Like all things the government does, this attracts a lodgement cost.
Do I have to pay it? Yes, this is payable for every property purchase.
How much is it? This depends on the purchase price of the property. For a $500,000 property, this is currently $3,896.50.
• Adjustments of property expenses
What is it? To put it simply, ‘adjustments’ are reimbursements made to the seller for certain fees / expenses incurred while you own a property that are paid by the seller, such as council and water rates. For example, presume that seller pays council fees (say $2000) for the whole financial year and you buy the property half way through the financial year, you would need to reimburse the seller $1000 as you own the property for half of the time that the fees were paid for.
Do I have to pay it? Yes, this is payable for every property purchase.
How much is it? This varies widely depending on what sort of fees are payable, how much the fees are and when you buy the property – it could be anywhere between $20 to a few thousand dollars.
• Cost of a conveyancer
What is it? A conveyancer is a professional who helps to transfer the property from the seller to you. This involves undertaking a range of tasks such as preparing and registering transfer documents, liaising with your bank to pay the seller and payment of the costs discussed in this article.
Do I have to pay it? You do not have to use a conveyancer when you purchase a property, however this is strongly recommended.
How much is it? Conveyancers usually charge a fixed fee of anywhere between $400 to $1500. However, each conveyancer differs in what this includes (e.g. typically third party disbursements are not included). It is highly recommended that you find out what the potential additional fees are before you engage a conveyancer.
In addition to the above, there are smaller costs which may be incurred such as ordering property certificate searches, registration of the mortgage and booking the SA Water special meter reading. These costs are generally $200 - $300 in total.
In short, it is important to be aware of the other costs of purchasing a property so you can budget accordingly. We recommend speaking to your conveyancer prior to signing the contract to obtain an estimate on all the costs that may be incurred.
This article is meant to be short, informative and easy to understand for non-land industry professionals and as such contains simplified terms and generalised concepts. If you want to clarify or discuss anything further, please do not hesitate to contact me on (08) 8278 4291.