Making Sense of Stamp Duty

What is Stamp Duty?
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In real estate, Stamp Duty is paid by the purchaser of a property and determined by the value of that property, the purpose, the type of property and most importantly where it is located.

Like the First Home Owners Grant, stamp duty is administered on a state level and so how much you pay depends on the current state legislation.

Am I eligible for a concession on stamp duty?
We all hate to pay any tax. Unfortunately, it is unavoidable and we just have to live with it.

Stamp duty is a basic tax that isn't just limited to real estate - other asset sales such as cars and businesses have to pay this tax as well.

It is especially difficult for the first home buyer. You finally save that deposit, you get your loan pre-approved, you find the property you love and can afford it. You buy it and then you hear about this extra cost that you have to pay. Not a nice surprise. This is why we recommend that you be well informed to help eliminate those nasties. If you have been dealing with a knowledgeable and experienced mortgage broker, you will know it, because, the broker will be more than willing to help you along the way and keep you well informed.

When do you pay Stamp Duty?
We are asked this question all the time. Stamp duty has to be paid within 30 days of the property transaction. Usually at the time that you settle on your new home. For most buyers, their conveyancer or solicitor will handle the transaction of funds.

Who do you speak to about Stamp Duty and any changes?
Mortgage brokers know the latest changes that state governments have in store for stamp duty and can advise if a grant is ending or coming up soon that may save you money. If you’re eligible for any concession your mortgage broker will take care of any paperwork involved.

You can use a Stamp Duty Calculator to determine how much you may need to pay, but to know exactly what you may or may not be eligible for you should speak to a professional or an expert such as an experienced mortgage broker.

Are you entitled to a stamp duty concessions?
All transfers of land or all real estate property that is sold or gifted - will be charged stamp duty. Depending on your individual circumstances, there may be concessions available for;

• First home buyers
• Farmers
• Off-the-plan buyers
• Buyers who purchase the property as owner occupiers
• Pensioners
  
  

Speak with an expert in the field such as a Mortgage Broker who will not only tell you what’s available today, but they will also advise on which grants and concessions could be ending or starting soon.
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If you would like to be referred to one of our recommended Mortgage Brokers or a Financial Planner, please call us on 1300 882 842
For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.