How the real costs of buying your first property can add up

Buying a property can be a rollercoaster ride, especially if it's your first.

We spend a lot of time thinking about first properties - how to make saving for one easier, how to be more prepared, how to figure out if it's right for you in the first place - because so many Blossom App customers come to us to save for this milestone purchase in their lives (which is a privilege we don't take lightly!).

Whilst we can't help you find that dream property, we can share some of the surprise costs that might come with the buying process. Here's a short checklist of the more common expenses, from people who made it to the other side:

Property transfer fee is a state government charge to register your name on the title of the property. Some states and territories charge a set fee, while others are on a sliding scale.

Mortgage registration fee - a state government charge for registering your mortgage on the title of your property

Stamp duty - you probably know this one! It's a state levy imposed on all property transactions, with the amount dependent on where you buy and how much you pay for your property. Some states offer stamp duty concessions to first home buyers.

You'll need to hire a solicitor, or conveyancer, to oversee the contract of sale and the transfer of the legal title of a property into your name, which usually costs somewhere between $750 and $2500, depending on the complexity of the sale. Don't forget to ask the conveyancer for a list of fees for searches involved in the process, like title searches and various council certificates.

As part of the conveyancing process, you'll need pest and building inspections - these can be expensive but are important for identifying any structural faults or insect infestations.

Any outstanding council and water rates and strata or body corporate fees are usually split between buyer and seller. There could also be installation fees for gas, electricity, internet and other utilities.

Most lenders will require you to have an insurance policy in place prior to settlement. This can either be home and contents or landlord's insurance.

This usually includes:

Loan Application or establishment fee - charged by the lender when applying for the loan

Lender's mortgage insurance - if you're borrowing more than 80% of the value of the property's purchase price, you'll pay LMI as a one-off amount or it can be added to your loan.

Property Valuation - most lenders ask you to pay for a property valuation prior to purchasing

Loan fees - also known as ongoing service fees or administrative fees, charged monthly or yearly

Overall, if you made it to the end of this list, you're already a winner in our eyes. You've shown curiosity, tenacity and above all, perseverance - all attributes that will come in handy on your journey to becoming a successful property owner. Bravo! And good luck from us.

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Sisters Ali & Gaby Rosenberg are the co-founders of Blossom App.