Upsizing or Downsizing? Your Financial Checklist
Considering a move to a larger or smaller home is exciting, but it involves more than just the purchase and sale prices. Many hidden costs can quickly add up, so a clear financial checklist is essential. Planning ahead for these expenses will help you budget accurately and avoid any unwelcome surprises, ensuring a smoother transition to your next property.
When selling, budget for real estate agent commission, which in Victoria typically ranges from 1.6% to 2.5% of the sale price, plus GST, and is negotiable. Conveyancing fees for sellers usually fall between $1,050 and $2,400, including professional fees and disbursements. Don't forget marketing costs, which are generally separate from commission, and your lender's mortgage discharge fee, typically $150 to $400, plus a Victorian government deregistration fee of approximately $146.40.
On the buying side, land transfer duty, commonly known as stamp duty, is often the largest upfront cost. This is calculated on a progressive scale based on the dutiable value of the property. For instance, a $700,000 property incurs approximately $37,070 in standard stamp duty in 2026. Conveyancing for buyers typically costs between $950 and $2,150, covering professional fees and disbursements.
Other buying expenses include the Land Use Victoria transfer registration fee, which from 1 July 2026 is $104.30 plus $2.34 for every $1,000 of the price up to $3,614. There's also a mortgage registration fee of about $129.20. If your deposit is less than 20%, you may also pay Lenders Mortgage Insurance (LMI), a one-off premium that protects the lender. A combined building and pest inspection typically costs $400 to $700 for a standard house. Moving costs for a local 2-3 bedroom house generally range from $400 to $1,200.
Understanding these financial implications is crucial for making informed decisions. We always recommend consulting with a qualified mortgage broker or financial advisor for personalised guidance, and a conveyancer for legal advice. For a clearer picture of your specific situation, speaking with a local real estate agent can also provide valuable insights.
