Factoring in stamp duty is very important when buying a home
Buying a property? You’ll have a lot of paperwork to get through, no doubt. And you’ll also have to deal with quite a few taxes - including stamp duty, the tax you pay when purchasing new land.
Here is what you should know about stamp duty before you move ahead and buy a home.
Stamp Duty is Different for Everyone
There are many variables that will dictate how much you have to pay on stamp duty. Your location, for starters, is a big factor, as each state government has its own way of working out the tax.
For example, here is a general breakdown of the different stamp duty taxes payable on a $400,000 property depending on what state you are buying in*.
Your rate of duty depends on how much the property or land costs, and whether you’re buying a home for the first time and taking out a grant. Even the date of settlement must be entered when you work out stamp duty. You’ll have to do some research to determine exactly how much stamp duty you will need to pay.
There’s Relief At Hand
To lessen the impact that stamp duty can cause to your bottom line, there are many grants available for first home buyers in Australia. Like the tax, these all come in at different amounts depending on your state of residence, and whether you are buying an established home or constructing a new one. Generally, grants are bigger for new homes, as part of a push to get home building on the up.
* Buyers should conduct their own research before buying to accurately determine how much stamp duty they are required to pay.
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