What You’ll Really Spend to Own a Melbourne Property
Most expats focus on the purchase price and forget what comes next. But even the perfect property can turn into a burden if the ongoing costs weren’t part of the plan.
Holding costs are what you’ll pay to keep the property every year. They include rates, maintenance, and insurance, and they can easily change how profitable or sustainable a property really is.
The best time to plan for them isn’t after settlement, but before you buy.
The Main Holding Costs
Council and Water Rates
These are charged quarterly and vary by location. Properties in established inner suburbs tend to attract higher rates.
Strata or Body Corporate Fees
For apartments or townhouses, these cover shared areas, building insurance, and maintenance. They can range from $2,000 to $8,000+ per year, depending on facilities and building size.
Property Management Fees
If you’re renting your property out from overseas, professional management is essential. Fees are usually between 6 and 8 percent of rent, plus one-off leasing or marketing costs.
Insurance
For houses, you’ll need building insurance. For rentals, landlord insurance adds another layer of protection. Together, these can cost $1,000 to $2,000 annually.
Maintenance and Repairs
This one surprises most buyers. Roof repairs, repainting, plumbing, or garden upkeep all add up. A safe rule is to budget around 1 to 2 percent of the property’s value every year.
Vacancy Buffer
Even well-located rentals can sit empty between tenants. Assume one or two months of rent per year as a buffer.
Apartment vs House - The Real Difference
To see how these add up, let’s look at two common expat purchase types.
Inner-City Apartment
Low maintenance but high shared costs. You might spend around $8,000 to $10,000 annually on body corporate, insurance, and management. The benefit is simplicity, but your flexibility is limited by the building’s rules and maintenance schedules.
Family Home in a Middle-Ring Suburb
Higher upkeep but more independence. Expect $10,000 to $12,000 in yearly costs once you include maintenance, insurance, and rates. However, the property has stronger potential for long-term growth and renovation upside.
Both are viable strategies. The difference is how they fit into your personal budget, lifestyle and long term plans.
The Shortlist Approach
We plan conservatively before the offer stage using our detailed cost projection worksheet to see exactly what their first year of ownership will look like. This prevents nasty surprises and allows you to buy confidently, knowing the property supports your long-term plan.
Ready to Find Out What Yours Will Cost?
🎥 Watch next: How to Calculate Your Property’s True Cost to Hold
This video training shows how to break down every holding expense and plan your first-year budget with accuracy.
📘 Read next: How to Find Your True Budget Before the Bank Tells You What it is
Learn how to align your comfort budget with realistic ownership costs.
📞 Book a Call with an Expat Specialist Buyers Advocate
If you want help mapping your annual holding costs or understanding how they fit into your long-term strategy, book a call here.
The Bottom Line
A property that’s perfect on paper can fail in practice if the holding costs aren’t planned for. By mapping your full cost-to-hold before you buy, you’ll make smarter decisions and stay financially secure overseas.
That’s the difference between owning confidently and reacting under pressure.
Join The Shortlist
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📘 Free Home in Sight – A Melbourne Guide for Remote Buyers