This year could be the year you buy your very first property or perhaps it's time to upsize or downsize.

Whatever your property plans, don't leave yourself financially floundering but instead, know your upfront costs beforehand.

Here are some hidden costs to watch out for:

Stamp duty

One of the most hated property costs in the country, stamp duty - also known as transfer duty - is a state and territory government tax that can cost tens of thousands of dollars.

What you'll have to pay depends on the purchase price of your property but also which state or territory you live in, ensuring stamp duty monies differ widely depending on where you live.

Other factors such as being a first-home buyer or investor will also change what you pay with first-home buyers in Victoria, New South Wales and Queensland not needing to pay stamp duty.

Lender's Mortgage Insurance (LMI)

You can avoid this cost altogether by having a house deposit of at least 20% but we know that skyrocketing property and rent prices increasingly mean this figure is a dream to many.

As well, you officially only need a 5%-10% deposit to buy a home.

But if you're one of the many people who decide to purchase in this way, be prepared to pay LMI, a one-off fee that protects your lender against potential loan defaults.

This fee will depend on your lender and the size of your deposit and it will be higher if you can only afford a  small one.

In the end, it can often be cheaper to wait and save until you have your 20% deposit, or at least a higher one, than pay LMI.

Legal fees

The complicated legal requirements involved in buying a property ensure a solicitor or conveyancer is a must-have so fees for their assistance should not be overlooked.

These licensed lawyers are essentially the mediator between you, the bank and the vendor and will prepare and clarify all the paperwork involved in the property transaction, including contracts.

Conveyancers are usually cheaper than solicitors and deal only with real estate laws and details.

They can be very helpful with background research such as property and title searches and can also walk you through the settlement process and give you good advice on rates and taxes.

Building and pest inspections

It may seem like an unneeded financial drag to organise an inspection for every property you're planning to buy - but such inspections are crucial.

What looks like a dream property might actually have damp and cracked walls, termite infestations and other structural issues which if they go unchecked, could cost you thousands later on in finances and headaches.

For those buying an apartment, ensure you organise a strata report inspection which will reveal any work done on the property as well as any that's needed in the future.

Home loan fees

Lastly, there's a wide range of home loan fees, all of which change according to which state you live in.

These monies can include mortgage registration fees, title transfer fees, loan application or establishment fees, and valuation fees.

Don't forget that many of these fees have different names depending on the state and your lender.

First-home buyers in particular can find these fees and their differing names bewildering but mortgage brokers and conveyancers can assist.

We're here to help.

We know this is a lot to take in with these points possibly bursting your property bubble but rest assured, you're not alone in this bewildering puzzle! So, don't despair. Whether you're a first-home buyer or investor, we have your back.

The same goes for unhappy home loaners considering refinancing. Lending Loop can give you competitive rates from more than 40 of Australia’s biggest banks and specialist lenders along with plenty of great loan advice and tips.

Give us a call today at Lending Loop.