One of the biggest upfront costs for buying a property is stamp duty. Many buyers are caught out when they do not include stamp duty in their budget and end up missing out.
The cost of a property does not stop at the purchase price amount. Home loan fees, building inspections and legal fees are just some of the extra costs you will be faced with before you are given the keys to your new home.
However, one of the biggest upfront costs for buying a property is stamp duty. Many buyers are caught out when they do not include stamp duty in their budget and may end up missing out on their property.
Stamp duty is revenue charged by the State Government for certain types of transactions such as selling property, mortgages, cars and assets which belong to a business. The amount of stamp duty you will have to pay will depend on which state you are purchasing in as each state government charges a different levy. Generally, stamp duty will be based on:
• The property purchase price
• The home loan amount
• The purpose of the property e.g. owner-occupied, investment
• Whether it’s an existing property, newly constructed or vacant land
Stamp duty needs to be paid within 30 days of the transaction, so for property, it must be paid within 30 days of settlement.
State governments offer different concessions and exemptions to help make it easier for certain people to purchase a property. Some of the benefits are available for pensioners, deceased estates, first home buyers, newly built properties and off-the-plan purchases. To find out if you are eligible for stamp duty concessions, just Google The Office of State Revenue in your state. Their website will have information on what is being offered in your state.
You can calculate stamp duty on your purchase using online calculators. Here is the State Custodians stamp duty calculator.