Stamp Duty Explained
Stamp duty is a charge which is applied by state governments in Australia 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 factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include:
1. Whether or not the property is a primary residence or investment property;
2. Whether or not you are a first home buyer; and
3. If you are purchasing an established home, a new home or vacant land.
Check out our interactive Stamp Duty Calculator which may help you to estimate the stamp duty payable on the property you are looking to purchase. Factoring in this additional cost cannot be overlooked when you are 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. If you are a first home buyer, visit firsthome.gov.au to learn about the concessions available in your state.
If you would like to speak with one of our MFAA Accredited Finance Brokers, contact one of our offices to make an appointment today.
Phone: 02 4967 5256
Email: info@phlnewcastle.com.au