Stamp Duty
 

Hi

Before asking this from the bank, I thought to post it here and see whether anyone has done it before.

I would like to know whether it is possible include stamp duty in to the loan when buying a house.
I do not think this is possible. So in that case, will the property owners here agree to add that price to the house and pay us that amount back as a kind of a "Cash Back" (may be without informing the bank) so that we can pay the stamp duty out of it.

I am just evaluating my options now after noticing many unsold houses in the market at this moment. I also heard that govt is considering to revise the stamp duty law here in WA. Any news on that?

thanks
bru

Re: Stamp Duty
 

hi there,the general elections are coming up in a few months,
there is talk of scrapping the stamp duty as it's proposterously high.here in wa stamp duty apparently makes up 90% of the governments annual revenue.
if i were you i'd wait to see what the outcome is before i buy.
hopefully by may there'll be no stamp duty.
all the best.
fitz.

Re: Stamp Duty
 

If you inflate the price you increase the amount of stamp duty. The mortgage is on purchase price less your equity. What ever price you pay is irrelevant to the bank - just as long as the % they contribute to the market value is within certain levels ie 80%. What you are size of your mortgage say from 30% to 35%.

The bank are happy to lend the money knowing you are using it to pay for the stamp duty etc - just as long as you have sufficient equity or come under requirements for 100% or 105% borrowing.

As mentioned above watch this space for elections - however with that amount of funding where or what other streams will be taxed in its place??