Stamp Duty in QLD
Stamp duty in QLD is a charge which is applied by the state government on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for in addition to your loan deposit.
What affects the cost of Stamp Duty?
The amount of stamp duty you are required to pay differs in each state, however there are three factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include:
- Whether or not the property is a primary residence or investment property;
- Whether or not you are a first home buyer; and
- If you are purchasing an established home, a new home or vacant land.
There are a number of stamp duty calculators available online that take the guesswork out of budgeting for a property. Factoring in this additional cost cannot be overlooked when you are considering your capacity to repay a loan.
However, in a bid by state governments to stimulate home ownership and growth, there are a range of tax concessions available to reduce stamp duty.
Again exact amounts differ across each state, but those who benefit the most in QLD are first home buyers and those opting to buy a new home.
Currently in QLD there are two major incentives in place for first home buyers, I’ve summarised these below:
- Stamp duty concession: When purchasing a house under $500,000; first home buyers are not required to pay stamp duty if they plan to live in the house within 12 months.
- Queensland First Home Buyers Grant: When purchasing or building a new house, which has never been previously lived in, the government is issuing a grant to first home buyers of $20,000 until 30th June 2018. This $20,000 can be used as part/all of your bank deposit. If you are looking to construct your own home, you will need a 5% deposit to get started (excluding the Grant).
If you have any questions regarding stamp duty, or anything else relating to the purchase of your home, please email me or talk to the Mortgage Broker of your choice.
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