A $700K Melbourne House Actually Costs $756,000. Here Are the 6 Hidden Fees.

A friend messaged me a week before his settlement date in near-panic. He'd just received the cost breakdown from his conveyancer and the numbers were $30,000 more than he expected.

He'd saved a 10% deposit — $70,000 on a $700,000 house. He thought that was all he needed. Stamp duty, legal fees, building inspection, bank charges, and a dozen other line items he'd never heard of pushed his total upfront cost past $125,000.

"I thought the deposit was all I needed," he said.

This is embarrassingly common. Especially among first-time buyers and new migrants who haven't been through the Australian settlement process before. So let me lay out every single cost, line by line, on a $700,000 Melbourne house.

1. Stamp duty: the biggest hit

Stamp duty is the single largest extra cost when buying property in Victoria.

For a $700,000 property purchased by a non-first-home buyer: approximately $37,070 1.

For a first-home buyer: approximately $24,713 (the concession applies between $600K and $750K on a sliding scale).

That's a difference of $12,357. If you qualify as a first-home buyer, this is the single biggest saving available to you.

For properties under $600,000, first-home buyers pay zero stamp duty. Under $750,000, there's a partial concession. Above $750,000, no concession at all.

If you're buying off-the-plan, there's an additional concession where stamp duty is calculated on the land value only (excluding construction), which can reduce the bill by 70-80%. This concession has been extended to October 2026 2.

And here's the big one: foreign buyers (non-PR, non-citizen) pay an additional 8% foreign purchaser surcharge. On a $700,000 property, that's $56,000 extra. Getting your PR before buying literally saves you the price of a new car.

2. Conveyancing / legal fees: $1,000-$2,500

You must engage a conveyancer or solicitor for any property purchase in Victoria. They handle contract review, Section 32 analysis, title searches, settlement coordination, and PEXA (electronic settlement) processing.

Cost: $1,000 to $2,500 depending on complexity 3.

Do not skip this. The Section 32 (Vendor's Statement) is a uniquely Victorian document that discloses everything about the property: easements, covenants, zoning, planning overlays, owners corporation details, outgoings, and any registered encumbrances.

A good conveyancer will flag issues that could cost you tens of thousands of dollars. A drainage easement across the backyard. A restrictive covenant that prevents multi-dwelling development. A planning overlay that limits building height. These aren't hypothetical risks — they're things we see every month in Section 32 documents.

I've seen buyers who skipped the Section 32 review and discovered post-settlement that their property had a heritage overlay preventing any facade changes. That discovery cost one buyer the entire development potential of the property — roughly $150,000 in lost value 4.

3-6. The other costs that add up

3. Building and pest inspection: $500-$800. A registered building inspector examines the property for structural defects, moisture damage, termite activity, roof condition, plumbing, and electrical. This is optional but refusing to get one is financial recklessness. A $500 inspection that reveals $35,000 in restumping costs saves you from a disaster 5.

4. Bank/lender fees: $500-$1,500. Loan application fee, property valuation fee, and settlement processing fees. These vary by lender. Some lenders waive the application fee for competitive deals. Always ask.

5. Lenders Mortgage Insurance (LMI): $0-$25,000. Only applies if your deposit is less than 20% of the purchase price. On a $700,000 property with a 10% deposit, LMI can run $12,000 to $18,000. With a 5% deposit, it can exceed $25,000. This is the most avoidable cost on the list — save the full 20% deposit and it disappears entirely.

6. First Home Owner Grant: +$10,000. This isn't a cost — it's money back. If you're a first-home buyer purchasing a new build under $750,000, you get $10,000 from the state government. It doesn't apply to established properties. But if you're buying a house-and-land package or a brand new dwelling, claim it 6.

The total picture on a $700,000 property:

Non-first-home buyer: $37,070 (stamp duty) + $2,000 (legal) + $600 (inspection) + $1,000 (bank fees) = approximately $40,670 in additional costs beyond the deposit.

First-home buyer: $24,713 (stamp duty) + $2,000 + $600 + $1,000 - $10,000 (FHOG if new build) = approximately $18,313.

Foreign buyer: add $56,000 surcharge = approximately $96,670.

Know these numbers before you start looking at properties. Not after you've signed the contract and are scrambling to find an extra $40,000 a week before settlement. That's how you end up defaulting on a contract and losing your 10% deposit as a penalty — a $70,000 mistake that ruins your property journey before it starts.