chels

I have just read that NSW government levies, on a $600,000 property, $22,000 in duty. Which sounds like a staggering amount to me (and I thought the stamp duty I paid on the property I purchased in the UK was a rip-off).

Have I read it wrong or do you have to factor in such a large amount when purchasing a property? I realise that if you purchase a property under $300,000 you don't pay any duty, and only part of it up to $600,000 (though that discount drops in large increments very quickly!), but was still surprised to read that the duty was so high.

Also, how often does the level at which discounts are available get revised? I realise that property prices are on the whole falling but I'm interested to find out when this was last reviewed and was it before the last rises in property values?

And another question - if this is an unexpectedly high cost I hadn't factored for, are there any other things I should look out for?

For example, I also read about mortgage duty - if we got a cheaper property that we planned (ie $550,000 with a $350,000 rather than a mortgage of $400,000 for a $600,000 property would we then get a discount?

DagBoy

Other things to consider:

Solicitors fees
Stamp duty on the mortgage (see the NSW Office of State Revenue calculator )

Cheers,

DagBoy

Phoenixuk2oz

......and lending fees, council searches, termite inspection, buildings inspection and transfer registration

All good fun innit

jad n rich

Dont look at victoria then from memory on a house we liked it was $37,000, put us off of leaving paradise real quick

Koza

Check if you are relieved from the stamp duty as a fist home buyer (you would be in QLD). Otherwise it's all included in loan, usually.

Phoenixuk2oz

Not sure what you mean Koza?

We were FTHO [in Aus / Qld] but we still paid stamp duty

ABCDiamond

Most of the States have revised the threshold for the first home stamp duty exemptions very recently.

Each State has its own level of First Home Owner Rate of Stamp Duty, eg:
W.A. - http://www.dtf.wa.gov.au/cms/osr_content.asp?id=206
0 - $250 000 = NIL

QLD - http://www.osr.qld.gov.au/taxes/duti..._firsthome.htm
Under the new transfer duty arrangements, no duty will apply to the purchase of a first home up to $250,000.

Here is a Link to all the States Stamp duty offices.

Phoenixuk2oz

[QUOTE=ABCDiamond]Under the new transfer duty arrangements, no duty will apply to the purchase of a first home up to $250,000.QUOTE]

Ahh that explains my last question i.e over $250k in QLD then you do pay stamp duty.

Are there houses under $250k?..uummm....maybe that's why there's no duty on em . Won't be too much of a loss to government then

ABCDiamond

, but actually there are quiet a few suburbs where the median price is still under $250k.

And if you out as far as Rockhampton City the 2004 median is under $100k. (and that's AFTER a 23.4% rise in 2004 !! )

Phoenixuk2oz

Ah.....but do these places have running water and toilets....or are you expected to pee in the bush ....not in "the bush" as in the bush in your garden....but ...ah...you know what I mean

Cheers for the info ABCD

ABCDiamond

I know what you mean

I've got the Sunday paper here with all of the median prices in it, and there are even a few in the Brisbane council area, not the greatest of areas, but OK for some.
Darra $222k
Durack $246k
Inala :scared: $180k
Rocklea $225k
Zillmere $241k

The cheapest median in the Redland area is - Russell Island at $122k, or Thornside on the mainland at $262k just over the zero duty limit.

The Logan area is only $236k median for the whole area
Ipswich is $210k

But going way north to Cairns it's actually $255k.

Obviously people can use this info to either find the cheap properties or avoid the cheap properties, whichever they prefer

chels

If you are interested in a property being auctioned, do you have to do all these checks before you make a bid in the auction itself? My fear is that I'll spend lots on getting searches and inspections and then lose out on auction day to a higher bidder (and that scenario happening more than once...)

And why are auctions so popular over here? Are they becoming less popular now that prices are falling and there are less buyers?

This information is reminding me of when we bought our car - not only did we have to factor in the sale price, but then we found out we had to pay to get it registered in our name, and then shell out for a green slip (after getting the pink slip), and then the actual insurance on top of the annual rego fee!! It was a case of think of how much we wanted to spend on a car - then think again and add a couple of thousand on top.

Phoenixuk2oz

To be honest Chels I've no idea about auctions as we've never bought a house this way. I personally prefer to know the price of a house and the starting point so I can barter downwards....not upwards

Maybe someone else on here has bought via auction and can advise you? It might eve be a better way to buy a house than the conventional method

I agree with you re the added "extra's" though and how this bumps up the price of whatever. This can be a pitfall if you're not careful when buying a house out here. Once you've also added the cost of anything you want to do in the house, like blinds or curtains, tiling, carport, new bathroom or whatever....then the costs of the house goes up even further still ....without any effort at all