07 Mar What is Stamp Duty?
Stamp duty is a charge which is applied by the state governments on transactions relating to the transfer of property or land. This is an upfront payment and needs to be budgeted for in addition to your loan deposit.
The amount of stamp duty you are required to pay will differ in each state, however there are three of the factors, along with the value of the property, that determine how much stamp duty you will need to pay.
The contributing factors include:
1. Whether or not the property will be a primary residence or investment property;
2. Whether or not you are a first home buyer; and
3. If you are purchasing a new home, established home, or vacant land.
There are also a number of stamp duty calculators available online that can help take the guesswork out of budgeting for a property. Often factoring in this additional cost cannot be overlooked when you are considering your capacity to repay a loan.