Upgrading often costs more than you think with stamp duty, agent fees and loan charges.
A bigger home means bigger bills: expect higher rates, energy costs and upkeep.
Smart planning starts with a buffer, budget test runs and early advice from a broker.
When you're ready to upsize, whether it's for more room, better schools or a change of lifestyle, it's easy to focus on the price gap between the home you have and the one you want. However, the truth is that upgrading comes with more than just a higher price tag.
There are other costs in the mix, and if you're not aware of them, they can quietly chip away at your budget, equity, and confidence. In this article, we'll break down all the extra costs you might come across so you can plan, avoid surprises, and upsize with confidence.
Whether you’re deep in house-hunting mode or just scoping out your next move, this guide is for you.
The upfront costs can sneak up on you
When upgrading, it's easy to focus on the price difference between your current place and your next one. But before you unpack a single box, there are a few other big-ticket costs to factor in—some expected, some less obvious. Let's break down the ones that tend to catch people off guard.
Stamp duty: If you're moving into a more expensive property, you might be hit with a bigger stamp duty, especially since most states don't offer discounts once you're no longer a first-home buyer.
Because stamp duty is typically calculated as a percentage of the purchase price, the increase can be steep. For example, going from a $700,000 home to a $1.2 million one could mean forking out more than $50,000 in some states.
Pro tip: Online stamp duty calculators are a handy starting point, but for real clarity, we'll help you run the numbers properly. This one's too important to guesstimate.
Agent commissions and selling costs: If you're selling your current home to fund the upgrade, you'll need to set aside money for your agent's commission, typically ranging from 1.5% to 3% of the sale price. On a $900,000 home, that could mean $13,500 to $27,000 per year.
Don't forget to factor in advertising and marketing packages, professional photography and styling, and auctioneer fees if you're going that route. It's all money that comes out before the sale settles. Planning for it upfront gives you more breathing room later.
Legal and conveyancing fees: With an upgrade comes two property transactions: your sale and your purchase. That means two contracts, two sets of searches, and two sets of conveyancing costs.
You'll generally pay $1,200 to $3,000 per transaction, depending on your location and the complexity of the paperwork. While DIY conveyancing is an option, we don't recommend it. Having a legal pro in your corner can save you from costly slip-ups, especially when timelines are tight.
Loan fees and exit charges: Upgrading often means changing lenders or loan products, which can incur additional costs, including loan application or establishment fees from your new lender, discharge fees from your old loan, and break costs if you're exiting a fixed-rate loan early.
None of these are deal breakers, but they can affect your overall budget. We'll help you compare loan options with all of this in mind so you're making decisions with eyes wide open.
The ongoing costs that come with a bigger home
Upgrading your home isn't just about the bigger mortgage or that dream ensuite. Once you're in and settled, the day-to-day running costs kick in, and they can take people by surprise. Let's walk through the common ones, so you're ready, not rattled.
Council rates: Council rates vary from suburb to suburb, but generally, the larger the land and the higher the property value, the more you'll pay. If you're moving into a bigger block or a more premium postcode, you might see your annual rates jump by hundreds, or even thousands, of dollars.
Insurance premiums: A larger or higher-value home typically results in a higher insurance premium. Pools, solar panels, and top-end finishes can increase your building's value. If you're upgrading your furniture or appliances to suit your new space, your contents insurance might also need an upgrade.
Pro tip: Check in with your insurer early. It's a good time to review the difference between building and contents cover and ensure any new additions are protected.
Energy bills: More rooms, more lights, more aircon. It all adds up. Open-plan homes, tall ceilings, and extra bathrooms may look great, but they're not always energy-efficient. You could see higher gas and electricity usage, especially if your current solar system isn't quite up to the new load.
Keep in mind that more space means more to heat and cool. Ducted systems and underfloor heating can be more expensive to run, and solar upgrades may be necessary to keep bills down.
General maintenance: A bigger home usually means more upkeep. There's more lawn to mow, more gutters to clear, more fixtures to fix, and more time (or money) needed to stay on top of it. If you're moving from a townhouse to a freestanding home or into something older, expect:
Higher maintenance costs, even without renovations
A potential need for help from a gardener, cleaner or handyman
Replacement costs for ageing appliances or fittings
The best way to avoid stress is to go in with your eyes wide open.
The cost of timing: Bridging loans, rent, and everything in between
One of the trickiest parts of upgrading is getting the timing right. Do you sell first and hope the right home is still there when you're ready? Or buy first and juggle two properties for a while? There's no one-size-fits-all answer, but each path comes with its costs and considerations.
Let's break down what to expect so you can plan with confidence.
Bridging loans: Buy now, sell later (with interest)
If you've found your dream place but haven't sold your current home, a bridging loan can help you cover the gap. It gives you the flexibility to secure your next property before finalising your sale. But that flexibility comes with some fine print. Most bridging loans are interest-only, but the interest adds up quickly. You're charged interest on the total loan amount until your current property sells.
Some lenders apply higher rates or expect faster repayments.
Bottom line? A bridging loan can be a valuable tool if you're confident in your timeline and have some financial flexibility.
Renting in between: A soft landing with added costs
If you've sold your home but haven't bought one yet, you might need to rent a short-term place while you search. It can ease financial pressure, but it also comes with extra logistics. Key factors to consider include rent and bond upfront, moving costs (twice), and storage for furniture and belongings.
You may also face pressure to buy quickly to avoid the rental. With kids, pets, or a busy household, this option can feel disruptive, so it's worth weighing the lifestyle impact alongside the budget.
Holding two mortgages: Short-term squeeze
Sometimes, the timing overlaps. You've bought your new place, but your old one hasn't settled or sold yet. Even a few weeks of dual ownership can stretch your cash flow: two home loans, two sets of council rates, insurance and utilities, and additional costs if you're preparing one property for sale while moving into the other.
It's manageable if you're prepared, but it can be stressful if it is unexpected. This is where having a buffer (and a good plan) makes all the difference.
Storage, removals and the hidden in-betweens
No matter which way your upgrade journey goes, storage and moving costs often sneak in:
Storage units can run from $200 to $400+ per month
Removalists may be needed more than once
Temporary accommodation, cleaning, and time off work all add up
These "middle layer" expenses aren't always at the forefront of your mind, but they can significantly impact your budget if left unplanned.
Upgrading your home should feel like progress, not pressure. Map out the timeline and protect your budget, which starts with understanding your options. At Aussie, we help buyers weigh up:
Whether it makes more sense to buy or sell first.
If a bridging loan is a smart move for your situation.
The real costs of renting or holding two properties.
How to structure your loan for flexibility and peace of mind.
It's not just about finance; it's about helping you make your next move with clarity, not chaos.
You might also be interested in: Renting vs buying
The cost of moving and turning a house into a home
You've settled. You've got the keys. Now comes the part that's often overlooked in the budget: the actual move. Moving into your new place isn't just about getting your stuff from A to B. It's about reconnecting services, sorting the furniture jigsaw, and making your new space feel like home.
Here's what to keep in mind and plan for early.
Moving services: Even a small move can quickly add up in time, energy, and cost. Removalists typically charge by the hour or by the job. Depending on your home’s size, you could be looking at:
$1,000–$3,000+ for professional removalists
Extra for packing and unpacking services (worth it with young kids or busy schedules)
Weekend or overtime surcharges if your settlement falls on a Friday
Pro tip: Book early, especially if you're moving around school holidays or end-of-month peaks.
Storage: Things don't often line up perfectly. Maybe your new place isn't ready, or settlement dates didn't sync, and you need to store your belongings for a few weeks. Storage units can cost between $200 and $400 monthly or more. Mobile pod options may charge for pickup, delivery, and redelivery.
If you're using removalists more than once, those fees also double. Whether it's temporary or longer-term storage, building it into your budget can help avoid last-minute stress.
Setting up utilities and services: Getting the lights on and the Wi-Fi humming can involve more than a few phone calls, including connection fees for electricity, gas, and internet, early exit fees from your old provider and administrative charges for updating council, strata, or water details. While each charge may seem small on its own, they can easily add up to a few hundred dollars in that first week.
Quick fixes and mini makeovers: Even if your home is "move-in ready," there's usually something you'll want to fix or freshen up. A coat of paint to brighten tired walls. Replacing blinds or patching up old fittings. Swapping light fixtures or getting plumbing sorted. None of it's huge on its own, but together, these touch-ups can take a solid bite out of your first-month budget.
New furniture and stuff: New spaces spark the urge for new furniture. Whether it's functional or just a finishing touch, it's worth planning for a dining table that fits the new layout, beds and storage for extra bedrooms, and outdoor settings, pool gear or BBQs for your new backyard.
If you've already got a wish list saved online, now's the time to factor it into your budget.
The best way to keep things smooth is to go in with your eyes open and your budget prepared. At Aussie, we're here to help you see the full picture. That includes your home loan, your move, and all the bits in between so you can settle in without the stress.
Smart budget tips for your next move
By now, you have a clear picture of the real costs associated with upgrading. So, what do you do with that information? Simple: you plan smarter. Here are some practical, no-nonsense budgeting tips to help you feel in control every step of the way.
1. Build in a buffer (and keep it separate).
Let's be realistic: things don't always go as planned. A delayed sale, a few surprise repairs, or a moving quote that blows out—they all happen. That's why we always recommend setting aside a buffer. Ideally, 10–15% of your total upgrade costs should be kept in a separate, easily accessible savings account and reserved for genuine surprises (not spontaneous shopping for rugs).
Think of it as a financial safety net. You hope you don't need it, but you'll be glad it's there if you do.
2. Check your state's fees and concessions.
Government costs, such as stamp duty and land tax, vary by state, and they change more often than most people realise. Here's what to check early:
Are you eligible for any owner-occupier concessions or threshold discounts?
What's your stamp duty bill, and when's it due?
Will land tax apply if you're buying an investment or dual-purpose property?
You can use online calculators as a guide, but confirm the numbers with your broker or conveyancer before committing.
You might also be interested in: First home buyer guide: government grants and concessions
3. Test-drive your future budget.
One of the smartest moves you can make? Trial your new lifestyle budget before you move. How? Add up what your new life will cost, including bigger mortgage repayments, energy bills, council rates, and insurance. Start setting that amount aside now for the next 2–3 months.
See how it feels and spot the pressure points early. If your budget already feels tight, this "practice run" can save you from bigger problems down the track.
4. Don't just think about the mortgage.
It's easy to focus on your loan repayments, but they're just one piece of the puzzle. Your true cost of living encompasses utilities, insurance, and maintenance, as well as travel, education, childcare expenses, and the costs of new furniture or setting up a home.
Add it all up to get your real monthly cost of living, not just the loan. If it still fits your lifestyle comfortably, you're in a good spot.
5. Talk to a broker early and often.
A smart budget starts with the right advice. Your Aussie Broker is here to:
Help you understand your borrowing power
Factor in upgrade-specific costs like bridging loans or dual settlements
Compare loan options that work for both now and later
If your numbers aren't quite there yet? We'll help you build a plan to get there without the pressure or hard sell. With Aussie in your corner, you'll be one step ahead the whole way.
Upgrade with clarity, not guesswork.
Upgrading your home is a big milestone, and it should feel like one worth celebrating. Yes, there are additional costs involved beyond the price tag. However, when you know what to expect, you can plan more effectively, budget more efficiently, and move forward with greater confidence.
Whether you're running the numbers, weighing up timing, or ready to get the ball rolling, your Aussie Broker is here to help you see the full picture. Buying better doesn't start with finding the perfect house. It starts with having the right support.
Ready to make your next move feel like a step up? Let's chat.