Off-the-plan property explained: What is stamp duty?
When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.
Often the largest outlay, after the deposit which goes to the bank, is stamp duty.
What is Stamp Duty?
Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.
It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.
Who pays Stamp Duty?
In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.
How much does Stamp Duty cost?
Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.
You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!
Overall, the stamp duty you need to pay will depend on:
- How much your land/property is worth
- Where your land/property is located
- What type of land/property it is
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