First Home Buyers Stamp Duty Concessions

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First Home Buyers Stamp Duty Concessions

Good news, first home buyers!

If you’ve already checked your eligibility for your state’s First Home Owners Grant and discovered you’re able to utilise the grant for your first home purchase, there may be more concessions on their way. Buying a home can be an expensive process with many hidden fees, and stamp duty is one area that can trip the unprepared or unaware buyer up and significantly add on to the overall cost of finalising a purchase.

Stamp duty is an unavoidable part of the buying process in Australia. It’s a term most of us are familiar with, yet many of us don’t truly understand. Stamp duty is a type of tax that applies to the transfers of property (as well as mortgages and vehicle registrations).

The amount payable is calculated based on the value of the sale or purchase, and is an inherent cost that must be factored in when accounting for each element of your home’s overall purchase price. Governments reinvestment revenue earned through stamp duty fees into the state economy, increasing state government budgets in areas such as police, emergency services, health, roads and public transport.

In Australia, stamp duty rates are decided across each separate state/territory government, with the result of varying rates from region to region. The term of payment also vary from state to state, so understanding the specific rules that apply to your region are crucial as you evaluate your potential purchase.

For first home buyers, however, there’s a number of concessions that help lift the financial load and make entering the property market more accessible for new buyers. In New South Wales, first-home buyers receive a full exemption if the property purchase is valued under $650,000. Queensland offers first home stamp duty concessions for homes valued under $550,000, with discounts on purchases that are above this cap.

 In Victoria, the government also offers a full exemption to first-time buyers, as long as the property purchase price does not exceed $600,000 and they live in the property for a minimum of 12 months. If the property purchase price exceeds the $600,000 cap, stamp duty discounts are available for properties up to $750,000.

If you’re looking to understand your position when it comes to stamp duty and any other fees payable across the process of your purchase, a mortgage broker can become the most valuable player on your team. At Rate One, I work with all range of first-time buyers who are looking to understand the property purchase process for the first time. Rather than letting these buyers become overwhelmed, I bring my enthusiasm, experience and expertise to the table, arming them with the tools they need to buy with confidence and peace of mind. Existing relationships with major lenders and a deep understanding of the purchasing process combine for an easy and intuitive journey towards completion.

 Looking to buy your first home? Reach out and connect so we can begin this exciting journey together.

 

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