When purchasing property, knowing how much your state or territory charges for stamp duty is essential because it could be one of your biggest financial outlays after the deposit.
What is Stamp Duty?
Stamp duty, also referred to as “transfer duty,” is a tax that states/territories charge on transactions involving the transfer of real estate and is paid based on the regulations of the state/territory the property is being purchased. There are three fundamental elements that together with the property’s valuation determine how much stamp duty you will have to pay, albeit the exact amount varies depending on the jurisdiction. Among the contributing elements are:
Whether the property is intended to be a primary residence or an investment.
Whether you’re a first-time home buyer or not.
If you are buying a brand-new house, an existing house, or undeveloped land.
There are several tax breaks available by state governments to lower stamp duty, in an effort to encourage house ownership and growth Again, specific amounts vary by state, but first-time homebuyers and those choosing to purchase a new house are likely to benefit the most.
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