Stamp duty is a mandatory tax that the state and territory governments levy on a home buyer, whenever they purchase a property. It is the amount of tax you will have to pay on any property purchase. The amount will depend on a number of factors, including where you live and if you are a first home buyer in Sydney. When purchasing a home or investment property, there are a number of costs that can take buyers by surprise, especially if you’re a first home buyer in Sydney and you are just becoming familiar with how the entire buying process works.
Whilst there are a few costs that can be factored into your home loan, there are others that are required to be paid upfront, and by a certain deadline – and this includes the stamp duty for the residential property you have purchased. It is important to note that the amount of it payable is subject to a few varying calculations, and the total cost is influenced by which state and even the territory you are purchasing in, the property’s value or purchase price, and if it will be your primary place of residence or as an investment.
For instance, the stamp duty calculator in NSW indicates that it should be paid within three months of the settlement of the property.
How do you calculate stamp duty?
The fees vary depending on the state or territory you are purchasing in. Each region has its own sliding scale, subject to its own calculations. Ultimately, it is determined by the dutiable value of your property, which is the price you paid for it, or its value on the market at the time of purchase.
The lower the value of the property, the lower the bracket will be, and the less you will have to pay. To look at it another way, it is calculated by applying a sliding scale of taxation, with percentages increasing according to the value of the property. The general rule is that the cheaper the property, the less tax will be paid.
Freshwater Financial Services’ stamp duty calculator in NSW is determined based on the dutiable value of the property, the place it is purchased in, and the property type. The data required, is sourced directly from the relevant state or territory office of state revenue, to ensure the most accurate figures. However, there are a number of other factors that can also determine the costs of it.
In helping you secure a competitive home loan that suits your goals and financial position, a qualified and experienced mortgage broker can also assist in calculating how much you should expect to pay, according to the property you are purchasing and the place you choose to buy your home in. Knowing the amount earlier on can help you best budget for it, and it is always advantageous to have a professional guide you through the buying process, especially when you are a first home buyer in Sydney.
Connect with us today and let us help with your stamp duty calculations, you can book a free appointment with our best brokers on https://freshwaterfs.com.au/contact/
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