The complete guide to buying a house in Australia

Buying a house is one of the biggest financial decisions most Australians will make. This guide walks you through the entire property acquisition process — from initial budgeting through to settlement — with specific guidance for New South Wales, Queensland and Victoria.

What to consider when buying a house

Before entering the property market, several foundational considerations matter:

• Budget and affordability — understand borrowing capacity, deposit requirements, and factor in costs beyond the purchase price itself, including stamp duty, legal fees, inspection reports and potential renovation needs.
• Suburb and lifestyle research — investigate school zones, transport access, amenities, infrastructure developments and local market trends.
• Future planning — consider how long you intend to stay and whether the property accommodates anticipated life changes.
• Ancillary costs — building, pest and strata inspection reports, plus post-settlement expenses like council rates, water rates, strata levies, maintenance and insurance.
• Property condition — thorough inspection by qualified building and pest inspectors, plus strata or owners corporation document review.
• Legal review — a trusted conveyancer or solicitor protects your interests before contract signing.
• Grants and concessions — vary by state and eligibility, including first home buyer assistance and stamp duty relief.
• Ownership structure — individual, joint, company, SMSF or trust ownership warrants consultation with accountants or financial advisers.

State-specific considerations

• NSW and QLD buyers should obtain strata inspection reports for apartments and townhouses, revealing financial health, planned works and legal disputes affecting the body corporate.
• VIC properties require review of the Section 151 Owners Corporation Certificate within the Section 32 Vendor Statement, disclosing fees, financial position, outstanding works and meeting minutes.

Strata levies (NSW/QLD) or owners corporation fees (VIC) contribute to shared space maintenance, insurance and capital works.

State-by-state home buying snapshot

Feature	NSW	QLD	VIC
First home buyer stamp duty	Full exemption: established under $800k; concessions to $1m. Vacant land: full exemption under $350k; concessions to $450k.	Full exemption: established under $700k; concessions to $800k. New homes, land or substantially renovated property: full exemption regardless of value.	Full exemption under $600k; discount to $750k. Temporary 50% concession / full exemption for new property up to $1m in City of Melbourne.
First Home Owner Grant	$10,000 for new homes up to $600k (or $750k land + build)	$30,000 for new homes up to $750k (contracts 20 Nov 2023 – 30 Jun 2025); $15,000 thereafter	$10,000 for new homes up to $750k
PPR stamp duty concessions	None	Concession rate applies to first $350k	Concessions for homes under $550k
Cooling-off (private treaty)	5 clear business days from contract date	5 business days	3 clear business days after purchaser signature
Cooling-off penalty	Greater of $100 or 0.2% of price	0.25% of purchase price	0.25% of purchase price
Auction cooling-off?	No	No (or within 2 business days of auction)	No (or 3 days before/after auction)
Unique risks	Gazumping before contract exchange	Risk passes to buyer one business day post-contract	Short cooling-off window
Strata / OC rules	Strata schemes common; detailed records required	Body corporate rules and by-laws apply to many units/townhouses	Known as Owners Corporation; responsibilities vary

Steps to buying a property

1. Research

Familiarise yourself with the market by investigating suburbs, recent sales, current listings and trends. Consider lifestyle needs (schools, transport, parks) and future capital growth potential. For investors, assess rental demand, yield, tax implications, capital gains liabilities and negative gearing benefits. Attend open homes and auctions to gauge pricing and local demand.

Upfront costs include:

• Deposit (usually 10% of purchase price)
• Stamp duty (transfer duty)
• Legal and conveyancing fees (including property searches)
• Loan application and establishment fees
• Building, pest and strata inspections
• FIRB fees (if foreign buyer)

Post-settlement and ongoing costs include:

• Council rates and water rates
• Strata levies (NSW/QLD) or owners corporation fees (VIC)
• Land tax (if applicable)
• Repairs, maintenance and home insurance
• Mortgage repayments
• Utility connections, furniture and moving costs

Settlement adjustments: You may reimburse the seller for prepaid council rates, water rates or strata fees, especially if they maintain a credit balance. Your conveyancer finalises these before settlement.

2. Finance planning

Map out funding through deposit saving, credit history review, debt minimisation, and comparison of home loan features (redraw, offset, fixed versus variable). A mortgage broker can help compare deals across multiple lenders.

A 20–25% deposit is ideal because it avoids lenders' mortgage insurance (LMI), but many buyers enter with 5–10% deposits depending on lender criteria. Ensure sufficient savings for deposit, upfront fees, stamp duty and inspections.

Check eligibility for government assistance:

• First Home Owner Grant (FHOG)
• Stamp duty exemptions or concessions
• Shared equity schemes or regional buying incentives

Each state has different rules. VIC offers full stamp duty exemption for first home buyers under certain thresholds; NSW and QLD offer partial exemptions or concessions depending on price, property type and principal residence intent.

Get pre-approval before house-hunting. Pre-approval demonstrates the lender has assessed your financial position and agreed (in principle) to lend a specific amount. It isn't a guarantee but it shows sellers you're serious and prevents wasting time on unaffordable properties.

3. Pre-purchase

Once you've identified a property, inspect it thoroughly:

• Physical inspection — walk through checking layout, condition and deal-breakers.
• Building and pest inspection — a qualified inspector checks for structural issues, water damage, pests (especially termites) and safety concerns.
• Strata inspection report (NSW & QLD) — for units, townhouses or apartments, this highlights body corporate financial health and legal standing.
• Owners corporation certificate (VIC) — contains annual fees, fund balances, maintenance history and future works, annexed to the Section 32 Vendor Statement.
• Strata by-laws (NSW/QLD) and owners corporation rules (VIC) — govern occupier behaviour and may affect your use of common property.

Contract review. Before signing, have your contract reviewed by a licensed conveyancer or solicitor who will explain your rights, flag unusual terms and recommend appropriate special conditions.

Price offer. Make your offer through the agent, ideally with legal adviser guidance. Offers can be verbal or written (written preferred), often including specific conditions. The seller can accept, reject or negotiate.

Negotiation. Negotiation may involve price, inclusions (window furnishings, appliances) or settlement period. In NSW, your legal adviser usually assists; in VIC and QLD, negotiation typically happens directly between buyer and agent.

4. Sign contract

Once both parties agree on terms, contracts are signed and exchanged. In VIC and QLD, agents typically organise this; in NSW, solicitors or conveyancers sometimes facilitate exchange.

5. Conditional contract (if applicable)

If your contract includes conditions (subject to finance or inspections), those must be fulfilled before the deal becomes binding. If any condition isn't met, you can generally withdraw without penalty. QLD and VIC contracts typically include these; in NSW this may depend on timing, negotiation and seller expectations.

6. Get final approval

Submit your signed contract to your lender or broker. Your lender will undertake property valuation and document review. Once they issue final (unconditional) approval, notify your conveyancer and provide finance approval documentation.

7. Unconditional contract

With finance and other conditions satisfied, the contract becomes unconditional. All parties have legally committed to completing settlement.

8. Pre-settlement: provide documentation

As settlement approaches:

• Complete Verification of Identity (VOI) with your conveyancer
• Review, sign and return stamp duty documents
• Prepare to pay transfer (stamp) duty
• Sign your loan documentation
• Arrange home insurance (often required before settlement)
• Complete a final inspection 24–48 hours before settlement

9. Settlement

On settlement day, your conveyancer, the seller's legal representative and your lender finalise the transaction. Funds are transferred, title is registered in your name, and you become the legal owner. Once completed, you'll collect the keys from the agent — congratulations.

State-specific nuances: NSW, QLD and VIC

While the process is broadly similar across Australia, differences exist around contract timing and buyer protection.

New South Wales. Contract exchange occurs much earlier than other states — sometimes before completing all due diligence (building/pest, finance approval). This creates gazumping risk, where a seller accepts your verbal offer then accepts a higher one from another buyer before contracts are signed. This is legal, and can leave buyers out of pocket for inspection or legal fees. A statutory cooling-off period usually applies unless waived.

Queensland. Contracts are usually subject to conditions — most commonly finance and building/pest. This gives buyers protection and time to organise final approval and checks. Gazumping is rare and the process tends to be buyer-friendly.

Victoria. VIC allows conditional contracts and a standard 3-day cooling-off period, unless purchased at auction or within 3 business days on either side of an auction date. Buyers receive a comprehensive Section 32 Statement (vendor statement) and, if buying a unit or townhouse, an owners corporation certificate replacing separate strata reports.

Transfer duty (stamp duty) explained

Stamp duty — also called transfer duty — is one of the biggest upfront costs when buying property in Australia. It's a government tax calculated on purchase price (or market value), usually payable before or at settlement. Rates are progressive: more expensive properties incur higher duty.

• NSW offers a First Home Buyer Assistance Scheme that may reduce or eliminate transfer duty for eligible purchases. You'll pay duty on the earlier of the settlement date or three months after the contract date. Off-the-plan PPR buyers may defer stamp duty until 15 months after the contract date.
• QLD offers a full first home concession for homes under $700,000, with partial concession to $800,000. Introduced in May 2025, the QLD Government brought in a complete exemption for first home buyers purchasing new homes or vacant land with no capped purchase price. Stamp duty must be paid within 30 days of contract date or 30 days from contract becoming unconditional.
• VIC offers full exemption for first home buyers on properties under $600,000, and concessional rates to $750,000. Principal place of residence and pensioner duty concessions are also available. Stamp duty is generally due at settlement.

Buying as a first home buyer

Buying your first home is a major milestone. First home buyers in Australia have access to several grants, concessions and schemes — but eligibility and benefits vary widely between states.

First Home Owner Grant (FHOG)

A one-off, tax-free payment to help you buy or build a new home, administered by state governments:

• NSW: $10,000 for new homes up to $600,000 or new builds up to $750,000.
• QLD: $30,000 (as of mid-2024) for eligible new homes under $750,000.
• VIC: $10,000 for new homes up to $750,000 (regional and metro areas treated equally since 2021).

In all states the property must be intended as your principal place of residence, and you typically must live in it for 6 to 12 months.

Transfer duty concessions for first home buyers

• NSW: Transfer duty exemptions for homes under $800,000, discounts up to $1m.
• QLD: Full exemption on homes under $700,000, discounted duty up to $800,000.
• VIC: Exemption under $600,000, concessional duty up to $750,000.

How to apply

You typically apply for the First Home Owner Grant through your lender at the time of loan application, and stamp duty concessions through your conveyancer during settlement preparation. You'll need:

• Proof of identity and citizenship/residency
• Signed contract of sale
• Evidence the property is new (for FHOG)
• Declaration that you intend to live in the property as your principal place of residence

Tips for first home buyers

• Get pre-approval before you start house-hunting
• Have your contract reviewed before signing
• Factor in all costs — not just the deposit
• Don't rush into a property that doesn't suit your long-term needs

Buying a second property or investment property

After your first home, you may consider a second property — to upgrade your lifestyle or build an investment portfolio.

Using equity from your first property. Many buyers use the equity from their first home as a deposit for their second. Equity is the difference between your property's current market value and the amount still owing on your mortgage. This strategy can reduce the need to save another full deposit, but you're increasing your debt load and both properties may be tied to the same mortgage.

Tax considerations. Investment properties are subject to different tax treatment. You may claim deductions on:

• Loan interest
• Property management fees
• Maintenance and repairs
• Depreciation on fixtures and fittings

Rental income is taxable, and when you sell, capital gains tax (CGT) may apply. If you're planning to live in the second property and rent out the first, this can affect your eligibility for transfer duty exemptions or principal place of residence (PPR) land tax concessions.

Strategy questions to clarify before buying:

• Capital growth or rental yield?
• Self-manage or use a property manager?
• Short-term or long-term hold?
• Exit strategy?

Your contract and financing options may be more complex — especially through a trust, SMSF or company structure. Have your contract reviewed early by a conveyancer who understands investment transactions.

Buying as a foreign buyer

If you're not an Australian citizen or permanent resident, there are extra rules. Foreign buyers face strict approval processes, additional taxes and limitations on property types.

Current restrictions (2025–2027)

From 1 April 2025 to 31 March 2027, the Australian Government has imposed a two-year ban on foreign buyers purchasing established dwellings, including temporary residents. Limited exceptions apply, such as redevelopment acquisitions that increase housing stock.

Foreign buyers are generally permitted to purchase:

• New dwellings, including off-the-plan properties
• Vacant land, provided construction of a new dwelling is completed within four years
• Redevelopment projects where the existing dwelling is demolished and replaced with multiple new dwellings

FIRB approval

Foreign buyers must apply for and receive approval from the Foreign Investment Review Board (FIRB) before entering a binding contract. The FIRB assesses applications on:

• Type and value of property
• Residency and visa status of the buyer or their spouse
• Intended use of the property

Exemptions may apply to temporary residents buying a home to live in, or to joint purchases with an Australian citizen spouse.

FIRB fees (2024–25):

Property type	Up to $1m	Above $1m
New dwellings or vacant land	$14,700	Higher tiers, increasing with value
Established dwellings (where permitted)	$44,100	Higher tiers, increasing with value

Processing time is usually 30 days but can take longer. Always include a condition subject to FIRB approval in your contract unless you already hold written approval. The condition should allow 45 to 60 days to receive the decision.

Vacant possession vs existing tenancy

An important detail to confirm early: is the property being sold with vacant possession or subject to an existing tenancy? This affects when you can move in, your legal rights, settlement obligations and even grant eligibility.

Vacant possession means the seller must ensure the property is completely unoccupied at settlement. Standard for most owner-occupier purchases.

Existing tenancy means the lease continues after settlement. You become the new landlord and inherit the lease terms. Even if the lease is due to expire before the settlement date, the tenant may remain unless formal notice has been given.

Key point: Unless the contract specifically requires vacant possession, you are legally obligated to honour the existing lease.

If you're purchasing a tenanted property:

• You inherit the lease and must comply with all tenancy laws
• You may be restricted from moving in or making changes until the lease ends
• Your lender may treat the property as an investment, impacting your loan approval and terms
• Land tax may apply if treated as an investment property
• Grant eligibility may be affected — some first home buyer grants and stamp duty exemptions require you to move in within a specific timeframe

State-specific notice periods

• NSW — at least 30 days' notice to vacate once a contract for sale is signed (periodic lease). Fixed-term leases generally cannot be ended early unless both parties agree. First home buyer duty exemption requires moving in within 12 months and living there for 6 consecutive months.
• QLD — 2 months notice if periodic and the property is being sold. Fixed-term tenants cannot be required to leave before the lease ends without agreement. Must live in the home for at least 12 months to maintain certain transfer duty concessions.
• VIC — minimum 60 days' notice if periodic. Fixed-term tenants entitled to remain until the term ends. First home buyer duty exemption requires moving in within 12 months and living there continuously for 12 months.

Auctions vs private treaty

Residential properties in Australia are typically sold via auction or private treaty.

Private treaty. The seller sets an asking price (or guide), and buyers make offers directly to the agent. There's room to negotiate price, terms and settlement dates.

• More time to conduct inspections and review the contract
• Flexibility to include conditions (subject to finance, building and pest)
• Cooling-off period in most states
• Sellers can still reject your offer or negotiate with other buyers at the same time
• Properties may be underquoted, so due diligence is key

Auction. A public sale where buyers bid in real time. The highest bidder above reserve wins.

• Bidding is unconditional — finance ready, inspections complete beforehand
• No cooling-off period applies (in most states)
• If you win, you must sign the contract and pay a deposit (usually 10%) on the spot
• If the property is passed in, the highest bidder may be invited to negotiate privately afterwards
• High-pressure environment — easy to overbid
• If you're not successful, you may lose money spent on pre-auction inspections or legal reviews

State-specific auction nuances

• NSW — no cooling-off at auction or contracts signed on auction day after passed-in property. Private treaty: 5 business days cooling-off (with limited exceptions). Gazumping is a risk before contract exchange.
• QLD — no cooling-off at auction. Cannot negotiate inclusion of conditions like subject to finance or inspection.
• VIC — no cooling-off at auction or contracts within 3 days before/after a public auction. Private treaty: 3 business days from purchaser signing (with limited exceptions).

Financial considerations

Borrowing power is how much a lender is willing to let you borrow, based on income, expenses, debts and credit history. Lenders consider:

• Income and employment status
• Existing debts (credit cards, car loans, HECS/HELP)
• Living expenses and dependents
• Deposit size and savings history
• Property type and location
• Credit score and repayment history

Home loan features to weigh up:

• Fixed vs variable rates — fixed offers stable repayments; variable offers flexibility and potential savings if rates fall
• Offset accounts — link savings to your home loan to reduce interest
• Redraw facilities — access extra repayments you've made in advance
• Interest-only vs principal & interest — investors may use interest-only for cash flow; owner-occupiers usually repay P&I

Lenders Mortgage Insurance (LMI). A 20% deposit avoids LMI. Some lenders offer low-deposit loans (5% down) but with stricter criteria or higher rates. LMI protects the lender (not you) and can add thousands to your loan.

Subject to finance. Including a "subject to finance" clause protects you if your loan application is delayed or rejected. Usually 7–14 days to obtain full loan approval. Not available at auction — finance should be fully approved beforehand.

State-specific finance notes:

• NSW — finance clauses are not standard in private treaty contracts. Buyers are sometimes expected to waive cooling-off rights in competitive markets, so pre-approval is essential before making an offer.
• QLD — "subject to finance" widely accepted. Typically 7–14 days to confirm, plus the 5-business-day cooling-off period.
• VIC — similar to QLD; finance conditions commonly included. Shorter 3-business-day cooling-off, so move quickly.

Common pitfalls

Failing to get the contract reviewed. Always have a licensed conveyancer or solicitor review your contract before signing. This reveals hidden risks, opens room to negotiate, and protects your rights.

Skipping building and pest inspections. Structural defects, water damage or termite activity may not be visible at first glance but can mean massive repair bills. Always commission a qualified independent inspection.

Overlooking strata or owners corporation records. A building can look well-maintained but have a strata fund in debt or in legal disputes. In NSW and QLD, order a strata inspection report. In VIC, review the owners corporation certificate and all attached documents. Look for special levies, upcoming repairs, legal disputes or low capital reserves.

Underestimating post-settlement costs. Council rates, water rates, home insurance, strata/OC fees and loan repayments all kick in fast. Keep a cash buffer for at least the first 3–6 months.

Assuming the property will be vacant at settlement. Unless the contract specifically requires vacant possession and formal notice has been given, the tenant may legally remain. Confirm tenancy status in writing.

Not understanding loan conditions. Pre-approval ≠ guaranteed finance. Valuations may fall short, credit issues may arise, lender policies may shift. Read your loan documents carefully and maintain financial stability until settlement.

Missing grant or concession eligibility. Failing to meet deadlines or live-in requirements can disqualify you. Confirm eligibility early and get professional help with applications.

State-specific pitfalls

• NSW — gazumping risk; ensure quick contract exchange and clear terms. Transfer duty must be paid on the earlier of settlement or 3 months after contract date for existing properties. Off-the-plan PPR transactions can defer payment up to 15 months after contract date.
• QLD — don't miss the 5 business day cooling-off deadline. Finance and building/pest conditions must be clearly stated. Buyers must move into the property within 12 months of settlement to maintain eligibility for stamp duty concessions.
• VIC — shorter 3-day cooling-off. Finance and building/pest conditions must be specified in the contract. Buyers must live in the property for 12 continuous months within 12 months of settlement to qualify for various stamp duty exemptions.

Buying under a company, SMSF or trust

Not all property purchases are made by individuals. If you're buying under a company name, through a self-managed super fund (SMSF) or via a trust, there are added layers of legal and financial complexity. These structures can offer tax or asset protection advantages but come with strict rules, higher compliance costs and potential impacts on stamp duty and loan eligibility.

Speak with a financial adviser or accountant before proceeding.

Company purchases.

• Not eligible for first home buyer grants or stamp duty exemptions
• Some lenders restrict or reduce borrowing limits for company purchases
• Ongoing tax obligations differ from personal ownership
• You'll need to verify ASIC registration details and company resolutions when signing contracts

SMSF purchases. Strict ATO rules apply:

• Property must be solely for investment purposes — you or related parties cannot live in or use the property
• Must comply with the fund's investment strategy
• Any borrowing must use a limited recourse borrowing arrangement (LRBA) — not all lenders offer these
• All rent and expenses must be handled through the SMSF's accounts
• Stamp duty and CGT still apply; SMSF loans typically require larger deposits and higher interest rates

Trust purchases (discretionary/family trusts, unit trusts):

• Trusts can complicate borrowing; not all lenders accept them
• You'll need a valid trust deed
• Some grants and concessions are not available to trusts
• Trust income and tax distributions must follow the deed's rules and be managed annually with an accountant

State-specific notes:

• NSW — only the trustee of trusts and SMSFs can be registered on title; trust names don't appear on title. Ensure the correct entity is named as purchaser. No residential concessions under these entities.
• QLD — trusts cannot be named directly on title; only trustees can hold property "as trustee for" a nominated trust. Duty concessions generally not available.
• VIC — trusts cannot be named directly on title; only trustees hold "as trustee for". Ensure the correct entity is the contract purchaser. Residential benefits don't apply.

Pre-settlement, settlement and after

The final stage usually spans 30 to 90 days.

Pre-settlement (the last week or two):

• Loan documentation — your lender prepares formal loan documents. Sign and return promptly.
• Stamp duty — paid on or before settlement; your conveyancer manages timing per state.
• Insurance — arrange building insurance as soon as you become liable for the property (which can be from contract signing in some states).
• Final inspection — usually 24–48 hours before settlement to confirm condition and inclusions.

Settlement day:

• You pay the balance of the purchase price using loan funds plus any contribution
• Your conveyancer completes the transfer of ownership
• Title registration and legal documents are lodged
• The seller's mortgage is discharged; rates and levies are adjusted between the parties

Once settlement is confirmed, you receive the keys and legal possession. If vacant, you can move in immediately. If tenanted, you take over as the new landlord from that date.

After settlement:

• Finalise utility connections and insurance
• Notify relevant authorities of your new address
• Set up ongoing payments (rates, strata, mortgage)
• Review your ownership structure with your accountant for tax and record-keeping

What's next

The biggest mistake first home buyers make is engaging a conveyancer after they've signed. By then the contract is binding and any dodgy clauses are baked in. Get a conveyancer engaged before you make an offer. That way they can review the contract before you sign, and you start any applicable cooling-off clock with a clean document.

Get a fixed-fee quote from Zettle.

Source

• The Complete Guide to Buying a House in Australia — Zettle