What is Stamp Duty?
Stamp Duty is a tax enforced by the Australian State and Territory Government on the purchase price of all property. This tax is to fundamentally cover the cost of changing the title and ownership details of the property with any future sales. Unfortunately, there is no getting out of paying Stamp Duty (unless you are a First Home Buyer, please read below), so it is important to factor this cost into the total purchase price of a property. The average home price in NSW is $837,000 which would equate to $33,427 in stamp duty. Please see a table breakdown below from the NSW State Office of Revenue outlining Stamp Duty calculations:
This video also sums up Stamp Duty very well:
https://www.facebook.com/richardsonandwrench/videos/10155674233056996/
Some typical questions:
Who pays stamp duty?
The purchaser of the property once the sale takes place.
When is stamp duty paid?
Within three months from the purchase date unless off-the-plan, which is three months from completion.
Am I exempt from paying stamp duty?
First Home Buyers Assistance Scheme qualifiers are eligible for stamp duty exemption for properties valued up to $650,000 and a discounted amount for new homes valued between $650,000 and $800,000.
If you would like more information on Stamp Duty or need help searching for, evaluating or negotiating property, call me today for a confidential discussion on (+61) 2 9960 1066 or +61 419 200 018 or enquire today for more information about how PK Property Search & Negotiators can secure your next home for the lowest possible purchase price. Also don't forget to check out our 2 minute video tutorials on our PK TV page and/or subscribe to my Monthly Market Update for my thoughts and comments about what's happening in Sydney's property market, tips and tricks to use and much more!