- Posted By Craig Wieckhorst
Under the new model proposed by the state budget, Stamp Duty COULD be
abolished for thousands of prospective home buyers in NSW.
At present, Stamp duty is a onetime government tax on property purchases and one
of the biggest hurdles in securing a property! IF you’re upgrading and/or downsizing
– You still have to pay it!
This just means you got to account for this cost when you are saving.
Example – Assuming you’re buying something established.
A Property worth $800,000, Will attract an approx. $32k stamp duty, so if you have a
10% deposit ($80k) we have to deduct the stamp duty, leaving you with $48k (6%
deposit) towards your deposit, and this will affect your Loan to Value Ratio (LVR),
which limits your choice of banks and your interest rates will be potentially higher! –
OH NO! BUT OH YES, you can buy a property with 6% deposit.
But NEVER fear, NSW Government has a new proposal – still not yet 100%
The proposal offers two options:
1) The current BS System where you pay STAMP DUTY … Nothing changes……
2) New PROPOSAL: A Fixed $500 Upfront fee + an annual tax rate of 0.3% on the
The only catch - Once the property is subject to that annual tax, all future owners will
have to keep paying it.
The proposal is to be reviewed in March 2021 – BUT PLLEASSSSEE DO NOT hang on
to this if you are thinking of buying, as this is just a proposal from the GOVERNMENT.
Remember when they proposed to ban tiktok? -well that didn’t happen.
I said it before, and I’ll say it again, buy what you can afford to maintain ��