09/09/2020
◼️ Understanding stamp duty ◼️
There’s a lot to consider when buying a property. Including fees and costs that can sometimes be unsuspected - one of those fees is stamp duty.
◼️ What is stamp duty?
Property stamp duty, also known as land transfer tax, is a state or territory Government tax that is payable when you purchase a home. The fee is paid on top of the purchase price by the home buyer and varies depending on where you live, the type of purchase, and the value of the property.
◼️ How much does stamp duty cost?
The amount of stamp duty that will be paid depends on the home buyer situation. Many factors at play may include:
- The state or territory in which you are buying the property.
- The type of property, like a primary residence or investment property.
- Whether or not you’re a first home buyer.
- Whether you are purchasing an existing home, new property or block of land.
- Whether you are an overseas purchaser.
◼️ When does stamp duty have to be paid?
When purchasing a property, you will generally need to pay stamp duty close to the 30-day settlement period. Just remember that every state and territory have different time periods for the payment of stamp duty. If you are working with a solicitor, they can organise the stamp duty payment process on your behalf.
◼️ Do I have to pay stamp duty if I am a first home buyer?
To encourage first home buyers to enter the property market, most states and territories offer concession or exemptions to eligible buyers purchasing their first property. These concessions are subject to change depending on the value of the property and whether it is an existing property, new build or a block of land.
◼️ Can stamp duty be added on to a home loan?
As the stamp duty fee is a Government tax and is required up-front when purchasing a property, you cannot include the cost into your mortgage repayments.
To find out more information about buying, please speak to one of our sales consultants.