Why First-Time Buyers Should Understand Property Taxes

Buying your first home is an exciting milestone. But beyond saving for your deposit and choosing the right location, it’s also important to understand the hidden costs — and property taxes are one of the biggest.

Many first-time buyers are caught off guard by property taxes, especially when purchasing off the plan. Knowing what to expect can help you budget better, avoid surprises, and make smarter decisions during the buying process.

What Are Property Taxes?

Property taxes are fees charged by state and local governments when you buy, own, or sell property. These include one-off costs like stamp duty and ongoing charges such as council rates or land tax.

In most cases, you’ll need to pay some of these taxes upfront, while others become part of your regular expenses.

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Key Property Taxes First Home Buyers Should Know

Stamp Duty

Stamp duty is the biggest upfront tax when buying property. It’s calculated based on the value of your property and varies by state or territory.

Some states offer stamp duty concessions or exemptions for first home buyers. For example:

• In NSW, eligible buyers can avoid stamp duty on new homes valued up to $800,000
• In Victoria, discounts apply for homes under $750,000
• In the ACT, first-time buyers of off the plan properties may receive full exemptions

Always check your local government’s rules to see if you qualify.

Land Tax

Land tax is an annual charge on investment properties or vacant land. If you plan to rent out your new home or buy a second property later, this may apply.

Owner-occupied homes are generally exempt. But the rules change depending on your state, land value, and how the property is used.

Council Rates

Every property owner must pay council rates. These are charged quarterly or annually and go toward services like waste collection, roads, and parks.

Rates are based on your property’s location and value. It’s important to include these costs in your budget, especially when buying your first home.

Strata Fees (if applicable)

If you’re buying an off the plan apartment or townhouse in a strata complex, you’ll also need to pay strata fees. These cover shared services like maintenance, insurance, and amenities.

While not technically a tax, they are a regular ongoing cost that affects your overall affordability.

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Why It Matters for Off the Plan Buyers

Buying off the plan comes with unique timing and financial considerations. Settlement may be a year or more away, so understanding tax implications early helps with planning.

Off the plan buyers should:

• Confirm how stamp duty will be calculated — some states offer discounts if you buy early
• Factor in potential council rates once the property is completed
• Understand whether any land tax will apply if using the property as an investment
• Include body corporate fees in ongoing budget estimates

How Coposit Makes It Easier

With Coposit, first-time buyers can secure an off the plan property with just $10,000 upfront. Instead of needing the full deposit right away, you pay the rest in weekly instalments until settlement. There’s no loan, no interest, and no stress.

This approach gives buyers more time to understand costs like stamp duty and plan for property-related taxes without the usual pressure. Coposit partners with developers across Australia to make the process smoother and more affordable.

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Understanding Property Taxes Helps You Buy with Confidence

Knowing what property taxes apply to your situation gives you the upper hand. It helps you budget properly, take advantage of first home buyer concessions, and make smarter property choices. For anyone buying their first home — especially off the plan — being tax-aware is an essential step on the path to ownership.