Purchasing a home is a significant milestone. However, while most buyers plan for the deposit and loan repayments, many are unprepared for the additional costs associated with acquiring property in Western Australia. These unforeseen expenses can accumulate rapidly. It is essential to approach this process with full awareness and a well-prepared budget.
At The Simple Settlement Co, we’ve helped many buyers navigate their property journey, and we know just how often these overlooked costs pop up. Here’s a breakdown of what you might not expect—but should be ready for—when buying a home in WA.
1. Stamp Duty (Transfer Duty)
One of the biggest costs that often surprises buyers is stamp duty, officially known as transfer duty in WA. It’s a government tax based on the value of the property and is payable before settlement.
Tip: Use the WA Government’s stamp duty calculator to estimate your cost ahead of time.
2. Settlement Agent or Conveyancing Fees
A professional conveyancer or settlement agent handles the legal side of the property transfer, including reviewing contracts, performing title searches, and preparing for settlement day.
- Expect to pay around $2,000 to $3,000 for this service, depending on the complexity of the transaction.
- At The Simple Settlement Co, our fees are transparent, and we pride ourselves on personalised support, especially for first-time buyers.
3. Building and Pest Inspections
Before you commit to buying, it’s crucial to have a qualified building inspector assess the property. A building and pest inspection can save you from future headaches—and major expenses—by revealing structural issues or pest infestations.
- Inspections typically cost between $400 and $700, but can be more for larger homes or rural properties.
- While it’s an optional cost, we consider it essential.
4. Lenders Mortgage Insurance (LMI)
If your deposit is less than 20% of the purchase price, your lender may require Lenders Mortgage Insurance. This protects the lender (not you) if you’re unable to repay the loan. Your banker or broker will discuss with you if this is applicable to your transaction and what it will look like in your lending scenario.
5. Loan Application and Bank Fees
Applying for a home loan can come with a range of bank-related charges that aren’t always clear up front.
These may include:
- Loan application or establishment fees
- Valuation fees
- Settlement fees
- Ongoing account-keeping fees
Tip: Your mortgage broker or lender will provide a full list of fees in their loan offer and acceptance package. Make sure you read through this before you sign.
6. Moving Costs
Once the paperwork is done, the move itself comes with its own expenses. The Simple Settlement Co offers a concierge service which can help you with the set up of all these accounts and it’s a free service!
These can include:
- Hiring removalists
- Cleaning services
- Storage units
- Connection or disconnection fees for electricity, internet, and gas
7. Home Insurance and Utilities Setup
Before settlement is finalised, your lender may require you to have building insurance in place. Additionally, don’t forget the costs involved in setting up your utilities.
- Home and contents insurance: Varies depending on the property, but it’s essential from the moment you take legal ownership.
8. Council and Water Rates (Pro-Rata Adjustments)
As part of the settlement process, we are required to adjust the Council rates, Water rates and Land Tax is applicable to your property between the buyer and seller. You will need to pay the account from the day following settlement until the end of the billing period.
How The Simple Settlement Co Can Help You Prepare
At The Simple Settlement Co, we believe in making your settlement simple and stress-free—and that includes helping you understand the full cost of buying a home. We provide upfront estimates, explain every line item in plain English, and ensure you’re never caught off guard at settlement.
Our team will:
- Guide you through all the government and legal charges
- Help you budget for your settlement with clarity
- Liaise with your lender, agents, and inspectors to ensure no hidden fees fall through the cracks
While buying a home in WA is an exciting step, understanding the true cost of buying is essential for a smooth, stress-free experience. By planning for these often-overlooked expenses, you can avoid last-minute surprises and stay in control of your finances.
If you’re buying a home in WA, let The Simple Settlement Co walk you through every step with confidence and care.