HOW MUCH COULD LAND TRANSFER DUTY ADD TO THE COST OF YOUR PROPERTY?
Each state or territory has differing stamp duty on property purchases. stamp duty on house, home or property purchases is a contract tax that is payable on settlement of your new property. When you buy land, which may include buildings, duty payable is based on the market value of the property or the purchase price, whichever is greater. More information is available on the What is Stamp Duty? page.
ARE YOU ELIGIBLE FOR A FIRST HOME BUYERS STAMP DUTY REDUCTION?
The Victorian Government State Revenue Office offers eligible first home buyers a stamp duty exemption or concession or a stamp duty reduction when they purchase a new or established home. The first home buyers exemption applies where you buy a principal place of residence valued at not more than $600,000 - yes .... you pay NO Duty ... even though you may qualify for the first home owner grant!
First Home Buyers buying a home with a dutiable value from $600,001 to $750,000 will be entitled to a stamp duty reduction or concessional rate of duty calculated on a sliding scale. In most cases, the dutiable value of a property is the price you pay for it minus any deductions (such as the off-the-plan concessions). If the amount you pay for the property is less than market value, the dutiable value will be the market value minus any deductions.
There is a range of free mobile apps that help with calculating the real cost of purchasing your property, We like the variety of tools provided by Beyond Bank, including stamp duty, mortgage repayments and more! We stress this is not an Ad for Beyond Bank, though we do like them, and we recommend you use a good mortgage broker to source a mortgage that suits your needs.