Buying Property in Australia (NSW): What It Actually Costs

Transfer Duty (NSW)

NSW transfer duty (stamp duty) applies to all property purchases. It uses a progressive sliding scale — you only pay each rate on the portion of the purchase price within that band. Thresholds are CPI-indexed annually on 1 July. The rates shown apply to the 2025–26 financial year.

Transfer Duty (NSW) works on a sliding scale — you only pay the higher rate on the portion of the price that falls within each band, not on the full purchase price.

What You'll Pay at Transfer

On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.

Transfer / conveyancing fees

These fees apply whether you're paying cash or taking out a bond.

Bond registration fees (only if you're taking a bond)

If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.

Your Monthly and Annual Costs as an Owner

The purchase price is just the beginning. As a property owner in Australia (NSW), you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.

• Council Rates

  Set by your local council based on the land value of the property. Varies significantly by area and council — amount shown is a Sydney metro average.

  annual
  Typically escalates ~3% per year
• Water Rates

  Fixed water service charges paid by the landlord. Usage charges are typically passed to tenants. Set by Sydney Water (or your local provider).

  annual
  Typically escalates ~3% per year
• Landlord Insurance

  Covers building damage, landlord liability, loss of rent due to tenant default, and malicious damage. Highly recommended — some lenders require it.

  annual
  Typically escalates ~3% per year
• Maintenance & Repairs

  Budget for ongoing repairs and maintenance. Typically 1–2% of property value per year. Landlords are legally required to maintain the property in a reasonable state of repair.

  annual
  Typically escalates ~3% per year

When You Sell: Capital Gains Tax

When you sell a property for a profit, you'll pay Capital Gains Tax (CGT) on your gain. Australia (NSW) uses an inclusion rate system — only a portion of your profit is added to your taxable income for the year.

Costs of Selling Your Property

When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.

Buying as a Foreign National

• 1. FIRB approval is mandatory: All foreign persons must obtain Foreign Investment Review Board (FIRB) approval before purchasing any residential property in Australia. Fees start at A$15,100 for properties up to A$1,000,000 and scale up with the purchase price.
• 2. Established dwelling ban (2025–2027): Foreign buyers generally cannot purchase existing (established) residential properties. The ban runs from 1 April 2025 to 31 March 2027. Foreign buyers may still purchase new dwellings direct from developers, or vacant residential land where they commit to building within 4 years.
• 3. +9% Surcharge Purchaser Duty in NSW: Foreign persons pay an additional 9% transfer duty on the full dutiable value on top of the standard progressive rates. This applies in NSW — other states have similar surcharges (e.g. 8% in VIC and QLD).
• 4. Annual vacancy fee: If an FIRB-approved property is left empty or not genuinely available for rent for more than 183 days in a 12-month period, an annual vacancy fee applies. The fee equals the original FIRB application fee — payable each year the property remains vacant.
• 5. State land tax surcharges: Foreign owners pay additional land tax surcharges in most states. In NSW, the foreign owner surcharge is 5% on the total taxable land value of residential land holdings — on top of the standard land tax rates.
• 6. Temporary residents: Temporary visa holders have more flexibility than foreign non-residents. They can generally purchase one established dwelling to live in as their primary residence, but must sell within a set period if they leave Australia permanently or their visa expires. FIRB approval is still required.

Which Property Type Is Right for You?

Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Australia (NSW).