Stamp duty increase
Stamp duty in November and December hit new records due to Sydney’s increasing house prices.
Stamp duty is a large expense purchasers must take into account when purchasing a property. Not only do you need to save for a deposit but also for stamp duty.
Stamp duty on a purchase price of $750,000 is $29,260.00 and must be paid by a purchaser at or prior to settlement if borrowing money to buy a property, otherwise within 3 months of exchange.
If buying a house or apartment off the plan, purchasers have 15 months from exchange to pay stamp duty or at settlement, whichever is earlier. This means a property may not be built for 2-3 years but a significant outlay must be paid by the purchaser much earlier.
Foreign persons do not receive the 12 month deferral and must pay the stamp duty within 3 months of exchange. Additionally foreign persons who purchase residential real estate must pay a 4% surcharge purchaser duty.
First home buyers no longer receive stamp duty concessions on purchases of existing homes but may be eligible for an exemption of stamp duty for purchases of a new home up to $550,000 or land up to $350,000 and concessions on houses up to $650,000 or land up to $450,000 for owner occupiers. Eligibility criteria applies.
Grants of $5,000 may apply for purchasers of a new home up to $650,000 or vacant land up to $450,000 upon which a new home will be built provided construction commences within 26 weeks of completion of the purchase. This is deducted from the amount of stamp duty payable by the purchaser. Eligibility criteria applies.
Turner Freeman have specialist lawyers in the area of property law who can provide you with advice and assistance if you are looking to purchase, or in the process of purchasing a property. Contact us today on 13 43 63, our NSW offices are in Sydney, Parramatta, Campbelltown, Newcastle, Penrith, Wollongong and Gloucester.