chr1sarter

Just watched the Espisode of " A place in the Sun" screened several months ago where they were in Perth. The presenter showing the couple around , mentioned that stamp duty in Aus is far more expensive than UK, and gave an expample of the houser they were viewing at £200K would cost £10K in stamp duty (5%) but for first time buyers, you get a 4% discount . She also mentioned the fisrt time buyers $7K grant, but we already heard about this, but not the stamp duty.

Is this true?

Chris

wmoore

It varies by state (natch ) but this seems about right AFAIK. I 'heard' that you should budget around 10% of the purchase price of your house for stamp duty and other 'extras'.

TheColebecks

see this link - http://www.revenuesa.sa.gov.au/stamps/sdmort.html BUT according to someone on Adelaidebrits, on the news it said that stamp duty is to be scrapped as of Jan 06

Secretsquirral

If true, does that apply to every state or just SA?

chr1sarter

This article quotes stamp duty payable on mortgage houses, and quotes first time buyers are exempt from the duty.

2 things:

1. Are all fisrt time buyers excempt from stamp duty?.
2. If you do not need a mortgage, and you buy another home, do you have to pay stamp duty?

chris

rapitts

You also get 3% from the government for first time home buyer.

bondipom

You get $7000 not 3%. In NSW first home buyers do not pay stamp duty on houses up to 500,000. There is a sliding scale up to 600,000 and full stamp duty there on.

ProofReader

Unfortunately, you're only getting part of the information you need and most of these snippets of information will mean that you've got it all wrong for your particular scenario, chr1sarter.

I'd recommend that you get the info from the horse's mouth, so to speak, at the Office of State Revenue, Western Australia. I believe, from your 'location' that you are heading for Perth? You will find stamp duty calculators at that site.

I may be able to help with specific information as I have many years experience working in this area, but in Queensland. Firstly though, I'd need to know:

1. Whether you've ever owned residential property before (anywhere).
2. An approximate value of the property you'll be looking at buying. This is because of the sliding scale which stamp duty works on.
3. Whether you'll be taking out a mortgage and the approximate value of that mortgage.

Stamp duty is payble both on a contract to purchase a house and/or land AND on a mortgage - they are two separate dutiable transactions. Mortgage stamp duty, however, is generally a lot lower than stamp duty on a conveyance.

Feel free to PM me if you'd like some help.

PR

steve99

Here's a link to a stamp duty calculator (for WA) from the REIWA website (Real Estate Institute of Western Australia)
http://www.reiwa.com.au/content-stampduty.cfm

First Home Owners in WA dont pay stamp duty upto $250K. All FHO are also entitled to the $7K first home owner grant (subject to a few criteria being met) regardless of property cost.

Upwards of $250K the stamp duty is on a sliding scale -
(upto $250K only apply if your not a FHO)
Purchase price up to $80,000 2.0%
$80,001 to $100,000 $1,600 + 3.0%
$100,001 to $250,000 $2,220 + 4.0%
$250,001 to $500,000 $8,200 + 5.0%
$500,001 and over $20,700 + 5.4%


see the calculator for specific examples.

The FHOG is effectively wipped out by the stamp duty once you hit around $303K (stamp duty is $6996)

Whether you need a mortgage or not is irrelevant regarding stamp duty or the FHOG.
You can only claim the FHOG once and it has to be on your principle place of residency. So not a second property or investment property.
You need to have PR at the time of signing the contract to purchase the property to be entitled to the FHOG. So if you are awaiting PR, find a house you want in say January make an offer (sign a contract) get PR through in Feb and move in and apply for the FHOG in March you wont be entitled to it - I found this out the hard way as I was told this was ok by Challenge Bank and the department granted me the money, they then had some sort of weird audit of the bank and found some clause that meant we shouldnt of been granted it.... I got left carrying the can and am in the process of paying it back, (interest free over 5 years - a small moral victory.. )

chr1sarter

Thanks for all the replys. Proofreader just sent you a PM. Still confused, and here that WA will stop stamp duty as did SA as early as next year.

bridiej

I'm confused too, is this scrapping of stamp duty nationwide? (we're heading for WA too......)

And anyone got a weblink that tells you about this?

ssinnige

Be aware of the whereabouts of your 'first' home. In Qld, the rules are different for the stamp duty and the first home owners grant. For the first home owners grant you must not have owned a home within Australia ever before. While for the stamp duty for first home owners you must not have owned a home ANYWHERE in the world! Your sollicitor should take that into account (as mine did) when you buy a home.

Just to make regulations a bit more exciting for sollicitors they come up with these little issues.

Larissa

I know it's up for review Bridie, but haven't heard about any firm decisions yet although one is due soon in WA.

bridiej

Here's hoping then!!!

Jonahs_mummy

Chris,

On the phone with my mum on the gold coast this weekend & she told me about "DEVINE HOMES" www.devine.com.au who are offering a good land + home package...... subsidised rent for the 6 mths of the build, susbsidised mortgae payment for the 1st year you are in the house & they pay your stamp duty! They have a few developments in Queensland, not sure about anywhere else.

Claire
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