There are various costs and fees associated with buying a property in Australia. This article will act as a guide so you know what you can expect to pay and hopefully avoid any surprises when it comes to calculating costs.
There are different costs applicable when purchasing vacant land or built property within Australia and these can differ depending upon the state where the property lies. This article will try to set out some of the approximate costs and also the reasons why these costs can vary so much.
Australia is huge and is divided into eight states or territories. It is the eighth largest country in the world being only slightly smaller than the USA. To understand the following dimensions let me explain that 1 sq mile = approx. 2.6km2. Or the other way 1 km2 equals .390 sq miles. For comparisons of distance 1 mile equals 1.6km or 1km equals 1093 yds. Australia has an area of about 7,700,000 km2 or about 3,000,000 sq miles. From north to south it stretches 2560 miles and from east to west about 3180 miles. You will understand, then, that unlike England or other continental countries you do not live in one state and work in another. Neither can you presume that living within the same state as your employer means you are close to employment, transport or even civilisation.
The first lesson, then, is to make sure that you purchase property which you know for sure is near to where employment sources, schools and and other amenities are.
This has an enormous bearing on property costs because amenities and facilities within Australia are, almost without exception, along the coast-line and within about 60 miles from the coast. There are a couple of exceptions only. Do not gauge the distance from looking at a map – maps are deceptive with such a large country. If you are buying property or taking a job ask for the actual distance to be set down on paper. Australia has very expensive real estate considering that there is so much land.
In almost all states if a housing block (which usually has an area of 600 – 800 m2) is within two or three hundred yards (or metres) of the coast, has sea views, and is within 10 km of a major town then the price, just for the land could be AU$250,000 - AU$500,000. A housing block further away from the coast but still within the town can come down to AU$100,000. A block 60km or 30 miles inland may be down to AU$50,000. With such an extensive coast-line, and with such a sparse population there are going to be many other variations as proximity to town facilities come into play.
Houses also vary enormously in cost with a small, 50 year old, 2 bedroom home close to the centre of Sydney or Melbourne fetching over a million dollars whilst in a smaller town away from the coast it could be house and land for just AU$200,00. All of the costs etc. are available on real estate websites but the point being made is that you must ensure you are aware of exactly where the property is in relation to where you need to reside.
Please note that all details in this article are approximate. They can change at any time and checking websites for more specific, up-to-date and detailed information is advised.
Article written by: Fred Sparrow, Legal Kit Specialists