How Much Does Property Investment Cost by State?

You can purchase a house or an apartment unit for no other reason but because it is a good investment, even if it is a long commute in another region or a plane flight away in a different state.

However, the fees and charges you have to pay depend on which state you want to purchase in.

Don’t forget that because you’re purchasing the property as as investment, you are disqualified from the concessions granted for first-home buyers as you will not be residing in the property. So expect to pay for the full costs.

In this article, we used as an example a home bought at $500,000 as the best price range for investment is between $400,000 and $600,000 according to real estate experts.

Where in Sydney can I purchase property for $500,000, you might ask?  Difficult but not impossible if you are willing to purchase a studio or one-bedroom house, or search on the outskirts of the city.  You’ll also discover that what you’re going to pay for investing in Sydney is, for the most part, cheaper compared to other parts in Australia with the exception of Queensland (the only state with lower fees).

For a house that costs $500,000, you’d have to pay a little over $18,000.

Stamp duty – $17,990
Transfer fee – $138.30
Mortgage registration fee -$138.30
Total – $18,267

Victoria has the most expensive purchase price for a residential investment property out of any state in the country.

For a $500,000 home you’ll be hit with more than $8,000 more than a similarly priced house in Sydney, though the house you’d own for that price would probably be nearer the city or much bigger.  By adding $50,000 on the purchase price, you’ll pay roughly $3,000 to the applicable stamp duty, together with a slightly higher transfer fee.

Stamp duty – $25,070
Transfer fee – $1265
Mortgage registration fee – $114.90
Total – $26,449

The real estate market in Queensland has not enjoyed the same degree of growth as New South Wales and Victoria, making it an attractive investment haven.

The cost of buying an investment property in the Sunshine State is the lowest of all Australian states.

Stamp duty – $15,925
Transfer fee – $1269
Mortgage registration fee – $181
Total – $17,375

South Australia may not quite match Victoria in terms of the high overall costs of investing, but it is close to it.
Investors need to cough up $3,897 for the transfer fee on a $500,000 property. This is 300% more than in other states.

In some states the transfer fee is fixed, but the fee in South Australia increases by around $402 each time you add $50,000 to your purchase price.

Stamp duty – $21,330
Transfer fee – $3897
Mortgage registration fee – $160
Total – $25,387

Western Australia’s real estate market is seen as unstable to some degree, but investors who are prepared to brave it will experience reasonably low stamp duty and fees. The state follows behind Queensland when it comes to low stamp duty fees. For transfer fees, they increase only fractionally as the price of the property increases.

Stamp duty – $17,765
Transfer fee – $258.70
Mortgage registration fee – $168.70
Total – $18,192

Fees are kept low also in Tasmania, largely because of the fees being kept at low rates, regardless of how much the property is worth.

Pleasantly for buyers, all properties have a transfer fee that is set at $203.05. This means that when the purchase price reaches $800,000, the cost in Tasmania becomes the least expensive in Australia.

Stamp duty – $18,247
Transfer fee – $203.05
Mortgage registration fee – $132.52
Total – $18,583

Other items to note
You’d also most probably pay annual land tax, depending on the state in which you purchase your investment property, and the type and size of the property you purchased.

Each state also has different land tax thresholds and charges an amount depending on the size of the land where the property stands.

But for units, you’d only pay a portion of the land tax, depending on the number of apartments or units are on the land. Make sure to find out the land tax rate before purchasing.