One of the primary attractions of purchasing a residential property investment is that you\u2019re not limited to locations you actually want to live in.<\/strong><\/p>\n You can buy a house<\/a> or unit based purely on the property\u2019s prospects as an investment, even if it\u2019s hours away in another region, or a plane flight away in another state.<\/p>\n But depending on which state you want to purchase in, the fees and charges you\u2019ll pay can vary significantly.<\/p>\n Remember, because you\u2019re purchasing the property as an investment, you won\u2019t have the benefit of first home buyer concessions, as you won\u2019t be living in the property \u2013 at least in the short-term\u00a0\u2013 so you\u2019ll be hit with the full battery of costs.<\/p>\n For our comparison, we\u2019ve used a property purchase price of $500,000, as many property experts suggest the prime range for investment lies between $400,000 and $600,000.<\/p>\n We can hear you already: \u201cWhere in Sydney can you buy a property for $500,000?\u201d.<\/p>\n But these properties are around if you\u2019re prepared to buy a studio or one bedroom property, or look a little further out of town.<\/p>\n And you\u2019ll find that the costs of investing in Sydney are about the only part of the process that\u2019s cheaper than the rest of the country, with Queensland the only state with lower fees. On a property worth $500,000, you\u2019ll come out of it with fees of a little over $18,000.<\/p>\n Stamp duty \u2013 $17,990<\/em> This villa in East Maitland is listed<\/a> for $329,000 \u2013 $339,000. Picture: realestate.com.au\/buy<\/p>\n<\/div>\n Buying a residential investment property in Victoria will see you hit with the highest purchase costs of any state in Australia.<\/p>\n On a $500,000 home you\u2019ll pay more than $8000 more than an equivalently priced property in Sydney, though the property you\u2019ll get for that money will likely be much closer to the city, as well as being larger.<\/p>\n For every additional $50,000 on the purchase price, you\u2019ll add around $3000 to the applicable stamp duty, plus a slightly higher transfer fee.<\/p>\n Stamp duty \u2013 $25,070<\/em> Buying in Victoria can be pricey. Picture: realestate.com.au\/buy<\/p>\n<\/div>\n Queensland\u2019s property market hasn\u2019t experienced the same level of growth as New South Wales and Victoria, making investing an enticing proposition.<\/p>\n Pleasingly for those investors, buying in the sunshine state has the lowest fees in Australia, due largely to lower stamp duty costs.<\/p>\n Stamp duty \u2013 $15,925<\/em> Buying in Queensland\u00a0generally involves much lower fees. Picture: realestate.com.au\/buy<\/p>\n<\/div>\n South Australia doesn\u2019t quite match Victoria when it comes to high overall costs of investing, but it\u2019s right up there.<\/p>\n Where they really sting you is the transfer fee, which at $3897 on a $500,000 home is more than triple what you\u2019ll pay in any other state.<\/p>\n And while in some states the transfer fee is a set rate, in South Australia it rises by about $402 for every $50,000 you add to the home\u2019s purchase price.<\/p>\n Stamp duty \u2013 $21,330<\/em> Western Australia\u2019s property market has been seen as somewhat volatile, but those willing to dive in will enjoy comparatively low duties and fees.<\/p>\n WA trails only Queensland for low stamp duty costs, while transfer fees increase only fractionally as the price of the property rises.<\/p>\n Stamp duty \u2013 $17,765<\/em> Costs are also kept down in Tasmania, due in large part to some of the fees being locked in at low rates, no matter what the property is worth.<\/p>\n Happily for buyers, the transfer fee is set at $203.05 for all properties.<\/p>\n This means that once a property\u2019s price hits around $800,000, Tasmania\u2019s costs become the cheapest in the country.<\/p>\n Stamp duty \u2013 $18,247<\/em> Depending on the state in which you buy your investment property, as well as the type and size of the property itself, you\u2019ll most likely also be charged annual land tax.<\/p>\n Land tax thresholds vary markedly from state to state, and are charged based on the size of the land on which the property sits.<\/p>\n However, if your investment is a unit, you\u2019ll only be charged a portion of the total land tax, based on how many apartments or units are on the land. It pays to check your potential land tax rates before making a purchase.<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"NSW<\/h2>\n
Transfer fee \u2013 $138.30<\/em>
Mortgage<\/a> registration fee -$138.30<\/em>
Total \u2013 $18,267<\/em><\/strong><\/p>\n![\"https:\/\/www.realestate.com.au\/property-villa-nsw-east+maitland-126962366\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/15000900\/131-Raymond-Terrace-Road-East-Maitland_800x600.jpg?resize=800%2C600&ssl=1\")
<\/p>\nVIC<\/h2>\n
Transfer fee \u2013 $1265<\/em>
Mortgage registration fee \u2013 $114.90<\/em>
Total \u2013 $26,449<\/em><\/strong><\/p>\n![\"12](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/15001439\/12-Raglan-Street-Daylesford_800x600.jpg?resize=800%2C600&ssl=1\")
<\/p>\nQLD<\/h2>\n
Transfer fee \u2013 $1269<\/em>
Mortgage registration fee \u2013 $181<\/em>
Total \u2013 $17,375<\/em><\/strong><\/p>\n![\"26](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/11\/15001934\/26-Brecknell-Street-The-Range-Qld_800x600.jpg?resize=800%2C600&ssl=1\")
<\/p>\nSA<\/h2>\n
Transfer fee \u2013 $3897<\/em>
Mortgage registration fee \u2013 $160<\/em>
Total \u2013 $25,387<\/em><\/strong><\/p>\nWA<\/h2>\n
Transfer fee \u2013 $258.70<\/em>
Mortgage registration fee \u2013 $168.70<\/em>
Total \u2013 $18,192<\/em><\/strong><\/p>\nTAS<\/h2>\n
Transfer fee \u2013 $203.05<\/em>
Mortgage registration fee \u2013 $132.52<\/em>
Total \u2013 $18,583<\/em><\/strong><\/p>\nOther considerations<\/h3>\n