Stamp Duty

Discussion in 'The Buying & Selling Process' started by Property Baron, 5th Jan, 2020.

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  1. Property Baron

    Property Baron Well-Known Member

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    If buying a new to be built house and land package is the stamp duty calculated on the total price of both house and land or only on the land?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Depends on the contract, if you have separate contracts for the land and construction, then you pay SD on the land only (most commonly). Less common is that the land owner is also the builder/developer.
     
  3. Property Baron

    Property Baron Well-Known Member

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    So would first home owners pay $0 in stamp duty if there land (bought separately) was 350k and there house was built 400k
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    If those are below the limit levels in your state then generally yes. That is why a lot of FHOG choose to build.
     
  5. Lloyd Coetzee

    Lloyd Coetzee New Member

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    Correct.

    Stamp duty is calculated on the contract price ($350k in this instance) so assuming you qualify for the exemption, you wouldn't be liable for any duty
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    First home buyers exemptions for stamp duty on new builds can be complicated. Ultimately you probably wouldn't pay any stamp duty but there's a few things to consider:

    * Stamp duty is often payable on the land at the land settlement, but refunded after the build is completed. You may still need to font the money. This can vary depending on the state, how the purchase is structured and the lender's policy.

    * The first home owners grant gets paid when you begin the build, not when you purchase the land.