wargod

Can anyone give me a link or give me 100% advice on the following:

What is the position of buying a piece of land and then having a house built on it.

Do you get tucked up for stamp duty on the land, on the house or both.

A link would be nice!

Wendy

Just the land. I'm looking for the link right now

wargod

Ta - do you know if this is to do with the fact we are first time buyers etc?

marco121068

Definitely the land only.

http://www.ozeproperty.com.au/stampduty.htm

Edit : Changed the link as the first one was crap!

Wendy

No, it's the same for everyone . My Aunt is on her fifth build, that's how I knew.

Thanks Marco for that link, couldn't remember where it was

wargod

Thanks Marco & Wendy.

So in actual fact the reason we do not pay stamp duty on the both the house AND land is down to the fact we are building?

Assuming the above is correct we would therefore have to pay stamp duty if we bought an already built house?

Sorry about this - I have a mega stressy wife !

Wendy

Yes, if you buy an already built house you do have to pay stamp duty on it. Don't ask me the reason why though, somone told me once but it went straight over my head

wargod

Thanks again - I thought that was the case!

utopia

On the calculator it says that property upto 500k is exempt from mortgage fees and stamp duty!
Am I reading it wrong?

Wendy

AFAIK, it works like the UK, where properties under a certain amount are exempt from paying stamp duty. It depends which state you are in though to how much the threshold is.

utopia

Thanks so much Wendy!

I am looking at NSW and put in up to 500k... can't believe how much stamp duty you pay in Aus I must admit!

Wendy

Yes, it is a bit shocking isn't it. Ah well, guess I won't be selling up for quite a while

wargod

Someone has just mentioned to me about this (I do not know how true it is)

If you buy your house and land at the same time then the purchase is classed as a residential contract, stamp duty therefore is calculated at a certain rate.

If however you buy your house and land at seperately this then is classed as a investment purchase and then the stamp duty is calculated at a different (slightly higher) rate.

Any info greatly received !!

marco121068

I'd say to clarify the matter 100% (rather than relying on complete strangers who probably don't really know the answer ) would be to speak to the Revenue Office Directly.

One extra thing to mention. I'm pretty sure it depends on what state, but some give you a concession on the Stamp Duty if it's your first home in Australia, though unfortunately SA don't.

Could be worth asking the question.

wargod

I have emailed them - but thanks, I think I should give em a call.

I came here for a easier life - I have had 10x more stress than I ever had back in the UK !!