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Stamp duty is revenue levied by states on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for, in addition to your loan deposit.
The amount of stamp duty you are required to pay differs in each state, however there are three universal factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include:
- Whether or not the property is a primary residence or investment property;
- Whether or not you are a first home buyer;
- If you are purchasing an established home, a new home or vacant land.
There are a number of stamp duty calculators available online that take the guesswork out of budgeting for a property. Factoring in this additional cost can’t be overlooked when you’re considering your capacity to repay a loan.
However, in a bid by state governments to stimulate home ownership and growth, there are a range of tax concessions available to reduce stamp duty.
Again, exact amounts differ across each state, but those who benefit the most are first home buyers and those opting to buy a new home.
Among the luckiest are first and new home buyers in New South Wales. If their new home is valued under $650,000, they will be exempt from duty; and if the home is valued between $650,000 and $750,000, they will receive significant concessions.
To find out how much stamp duty you need to pay, and whether or not you’re eligible for any concessions, our team at Premium Select Finance. We will help you assess your Stamp Duty and if there are discounts available for your scenario.