Buying your first home is an exciting milestone, but in Sydney’s property market, it can also be overwhelming. You’ve probably been saving for years, carefully planning your deposit and calculating your loan repayments. But what about the other costs—the ones no one really talks about until it’s too late?

At Melissa Maimann Buyer’s Agent, we help first-home buyers prepare for the full picture. Let’s break down the most common hidden costs so you’re not caught off guard.

1. Stamp Duty in NSW

Stamp duty is often the single biggest upfront cost after your deposit. For a $1.2M property in Sydney, it can easily exceed $45,000. While some first-home buyers qualify for exemptions or concessions under the NSW First Home Buyer Assistance Scheme, many don’t—and that’s where the shock comes in.

👉 Pro Tip: Always check your eligibility early. Planning ahead could save you tens of thousands.

2. Legal and Conveyancing Fees

Every property purchase requires a legal professional to review contracts, carry out due diligence and manage settlement. Expect to pay between $2,000 and $4,000.  It may not sound like much compared to your deposit, but it’s a critical cost that buyers often overlook. Without solid legal guidance, you risk missing red flags in the contract or strata report.  Also note that many conveyancers charge per contract review, so the fees can add up.

3. Lender’s Mortgage Insurance (LMI)

If you’re borrowing more than 80% of the purchase price, lenders require Lender’s Mortgage Insurance (LMI) to protect themselves. On a $1.2M property, this can add $20,000–$30,000+ to your mortgage, compounded over time.  Many first-home buyers assume LMI is optional—it isn’t. If your deposit is less than 20%, you’ll likely be paying it.

4. Building and Pest Inspections

Imagine buying your dream home only to discover major structural issues months later. Building and pest inspections cost between $600 and $1,000 per property, and while they feel like an extra burden, they’re essential insurance against nasty surprises.

👉 Skipping this step to “save money” could cost you far more in the long run.

5. Moving Costs and Ongoing Expenses

Don’t forget the practical stuff! Moving house comes with its own expenses:

  • Removalists and packing costs: $1,000–$6,000 depending on distance, access and volume.

  • Council rates: Ongoing quarterly costs.

  • Strata levies (for apartments): Can range from $1,000–$15,000 annually, depending on the building.

Most first-home buyers only realise these costs when the bills arrive—by then, it’s too late to adjust the budget.

Why Planning Ahead Matters

Sydney is one of the most competitive – and expensive - property markets in the world. With entry-level homes starting around $1.2M, every dollar counts. Failing to budget for hidden costs can derail your purchase or leave you financially stretched after settlement.

At Melissa Maimann Buyer’s Agent, we make sure our clients factor in all these expenses upfront. With the right planning, you’ll not only feel more confident but also avoid the nasty surprises that catch so many first-home buyers off guard.

How a Buyer’s Agent Helps With Hidden Costs

Here’s how working with a buyer’s agent puts you ahead:

  • Upfront Clarity: We help you calculate the true cost of buying—not just the deposit and loan.

  • Negotiation Power: By knowing your full budget, you can make stronger, smarter offers.

  • Peace of Mind: From contract reviews to inspection advice, we make sure nothing slips through the cracks.

  • Strategic Guidance: We connect you with trusted professionals—conveyancers, inspectors, and brokers—so you don’t overspend.

  • Save money: with our guidance, we reduce the number of building and pest and strata reports you’ll need and the number of contract reviews you’ll need – all due to our accuracy in identifying the right property for you and leaving the duds to the others.

Buying your first home is too important to leave to chance. A licensed buyer’s agent like Melissa Maimann Buyer’s Agent ensures you’re fully prepared.

Frequently Asked Questions About Hidden Costs in Sydney

1. What are the hidden costs of buying a property in Sydney?
They include stamp duty, legal fees, loan establishment fees, LMI, building and pest inspections, strata reports for apartments and moving expenses. Together, these can add tens of thousands to your purchase.

2. How much should I budget for hidden costs?
A safe rule of thumb is 5%–7% of the property price. On a $1.2M home, that’s around $60,000–$84,000.

3. Are hidden costs the same for houses and apartments?
Not always. Houses often require more maintenance, while apartments involve strata fees and reports. Each property type comes with unique additional costs.

4. Why do buyers often overlook hidden costs?
Because they focus only on the deposit and mortgage repayments. Without expert advice, things like stamp duty or strata levies can easily be forgotten.

5. How can a buyer’s agent help with hidden costs?
A buyer’s agent explains all the expenses upfront, estimates the total cost of buying, and ensures you don’t stretch beyond your limits. They also connect you with professionals to keep costs transparent.

Final Word

Buying your first home in Sydney is a big achievement—but it’s also one of the most expensive markets in the country. The hidden costs can easily derail your plans if you’re not prepared.

At Melissa Maimann Buyer’s Agent, we’ve guided countless first-home buyers through the process, helping them budget realistically, negotiate smarter, and buy with confidence.

👉 If you’re ready to take the next step toward homeownership, reach out to Melissa Maimann Buyer’s Agent. We’ll make sure your first home purchase is smooth, stress-free, and free of financial surprises.