What Is Stamp Duty?
Buying your first home is both exciting and sometimes confusing at the same time. To help you with the process, we will break down what stamp duty is so you don't get caught off guard.
What is stamp duty?
If we are talking about property, stamp duty is the tax applied to property transactions and mortgages. Essentially the amount is taken from the price paid for the property including GST, so the more your property costs, the higher the stamp duty cost. As the purchaser, you will be responsible for the cost of stamp duty.
As with most property regulations, it differs from each state. In Victoria, you will be expected to pay within 30 days of the property being transferred, which is usually the date of settlement. Your solicitor or conveyancer will be able to assist you with this as there are a few ways to pay your stamp duty.
If you are a first home owner, you’re in luck as Victoria offers a full exemption to first-home buyers who purchase a new or established home worth up to $600,000 if you live in the property for at least 12 months. If your property is priced from $600,000 to $750,000, you are also eligible for a discount on your stamp duty.
For more information on stamp duty as well as a handy calculator, click here.