Stamp Duty – What Does it Mean for You as a Buyer?
Grit Property Group
Helping Investors to Create Wealth using a Global Property Portfolio!
Purchasing a property can be a daunting task for many, and especially if you are a first home buyer, you may find the whole process overwhelming.
You have your deposit saved, your location set, and your dream home looming in the vicinity. The last thing you want is for some unknown factor to obstruct you from getting your hand on this long-awaited dream, and that is why we are on a mission to educate investors, especially those who are new to the property market, such as first home buyers, so they can be prepared for any hidden or uncalculated risks and costs can be addressed prior to you getting too far into the process.
Stamp Duty is one of these costs that you need to consider when purchasing a property as you will need to have a sufficient budget to cover it. It simply is a tax on property, which applied to a house, an apartment, a townhouse, or a plot of land.
Cost of Stamp Duty will vary depending on the state you buy in, the property price and whether you are an investor or an owner-occupier. Stamp duty can add a considerable sum to the purchase price of your property.
With regard to purchasing a property, there are a lot of expenses associated with the cycle. These include title transfers, review reports, bank loans and legal costs that are all on top of the actual property value. Yet, seemingly the most irritating cost you are left with as a purchaser could be stamp duty as it can be quite significant in the scheme of all costs.
Fortunately, there is good news if you are thinking of purchasing in Melbourne City, as there is an incentive to encourage people to do so via a reduced Stamp Duty scheme.
If a property valued under $1million is bought in Melbourne, a 50% discount on stamp duty is available whether you are a first home buyer or not. This 50% discount, however, applies if it is a brand-new residential property, with the contract for sale signed by 30 June 2022.?
Similarly, if it is a brand-new residential property that has not been sold for twelve months or longer since the property was constructed, stamp duty will be completely exempted in Victoria. How amazing is that, thousands of dollars going back into your pocket?
Bear in mind that to be eligible for this exemption or concession, the property must be for residential use, have a brand-new home fastened to the land, located in the City of Melbourne, and have a property value of less than $1 million. Now that’s something, isn’t it?
So which suburb in Melbourne city are you planning to purchase a property with this opportunity in mind, for less?
So, what does the future hold for Stamp Duty? You will be glad to hear that reform is on the horizon for Stamp Duty, along with several other taxes. What these changes may look like we will have to wait and see.
Grit Property Group is an advocate of property investment. Contact us and let us see how we can assist you in your investment journey.
#financialfreedom #creatingwealth #taxefficiency #gritpropertygroup
?