What is Stamp Duty and what does it mean for first home buyers?
Buying your first home is a big thing. You’ve budgeted for it, saved up for your first home and you are now ready to take the plunge. As a first home buyer it’s a big event.
But with all the excitement of purchasing your new home you may forget about state taxation liabilities and entitlements – important aspects which will affect your budget.
Stamp Duty for First Home Buyers
One of the biggest taxation liabilities when purchasing property in South Australia is stamp duty. Whether you are buying your first home, investing in property or purchasing a new home, stamp duty is charged on certain transactions and documents.
As a first home buyer, how much stamp duty will you pay?
The amount of stamp duty you will pay will depend on the purchase price of the property. To help you determine the amount of stamp duty you will have to pay, there are various resources and calculators which you can access on the Revenue SA website. Alternatively, seek professional advice from a conveyancer or mortgage broker. It’s important to consider stamp duty in South Australia when you are getting your first home loan.
When is stamp duty payable?
Stamp duty is payable when a property is transferred into your name. It is a legislative requirement for you to pay stamp duty in order to register you as the owner of the property - this means having your name registered on the Certificate of Title with the Land Titles Office.
Stamp duty is charged as a flat rate, based on the value of the transaction. This is dependable on the type of transaction or documentation.
Stamp Duty can take up a large chunk of your budget
Unfortunately stamp duty can be a significant cost that will take up a large chunk of your first home buyer grant budget and it helps to be prepared and plan for it.
On the other hand, there are some concessions and grants for first home buyers in South Australia, which may come as a relief to you.
First Home Buyers Can Get Stamp Duty Concessions
When you purchase your new home, Revenue SA offers various grants and schemes and one of them is the First Home Owner Grant which is a one-off grant payable to eligible purchasers.
Previous concessions offered by the state government and local councils include Off The Plan concessions, Strata levy concessions and Council Rate discounts. Check the Revenue SA website to keep up to date with what concessions and discounts are available to you.
Other ways to get Stamp Duty Concessions
There are other concessions for first home buyers detailed in the Stamp Duties Act and certain transfers such as a transfer from a deceased estate may be exempt from stamp duty.
While a lot of information for first home buyers is available on the Revenue SA website along with stamp duty calculators, it is always advisable to consult with your conveyancer or financial institution regarding stamp duty.
As a first home buyer, it is good to be aware of all other costs you may incur along with purchasing your first home - particularly big ones like stamp duty.
As leading Adelaide real estate agents, we can help you with any stamp duty questions you have. Ouwens Casserly Projects offer an experienced property consultant team to help you make your first move into the property market.