Stamp Duty – A Helping Hand

Stamp Duty is one of the biggest expenses that potential buyers have to face and, especially for a first home buyer, this can be extremely daunting and an added burden.

It is with great relief that I write this post as I see many people who struggle to get into today’s market with little to no help from the government. With prices soaring and lenders tightening up their margin for servicing debt, it really does make it difficult.

As of July 2017, the government has abolished stamp duty for purchases of $650,000.00 or under – whether it be a house and land package, a newly constructed or an established home.

To shed some light on this, look at the example below:

Kimberly is a first home buyer and wants to purchase a home of $650,000.00 in NSW. When you add up all the fees:

STAMP DUTY: $24,170.00
REGISTRATION OF TITLE: $138.80
TRANSFER OF TITLE: $138.80
TOTAL: $25,017.60

But now, with the abolishment of the government’s stamp duty, Kimberly only has to pay..

REGISTRATION OF TITLE: $138.80
TRANSFER OF TITLE: $138.80
TOTAL: $277.60

Kimberly has one less worry knowing that, with her purchase of $650,000.00, she is not required to pay stamp duty and that $24,000.00 does not need to be paid out.

Kimberly is one happy chappy!

If you think you are eligible to receive your first home stamp duty free or would like to discuss any mortgage scenario, please don’t hesitate to contact me via email.

 

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