If you're looking at the real estate market in Canberra for the first time, you are probably looking at property price tags and not much else when it comes to costs. However, there are quite a few residual fees and taxes that sit just around the corner – and it's best to be prepared for them.
One of these costs is stamp duty, but if it is your first time looking at homes for sale in Canberra , will you fully understand what it is?
Still wondering what stamp duty is all about?
Defining stamp duty
Stamp duty, also known as transfer duty or land and improvements duty, is a tax you pay when you purchase real estate. How much you pay and who you pay it to is different between every state and territory. In our part of the country, the ACT Revenue Office handles all duties to do with real estate.
These duties are always levied by the state or territory government, and according to Access Canberra you usually have about 90 days to pay it once you settle a property purchase. It's important to keep track of when it is due, or you might end up having to pay interest, which can really add up.
How much is stamp duty in Canberra?
The thing with stamp duty is, it scales with the price of a property – the more expensive your home is, the higher the stamp duty will be. For example: on May 31st, CoreLogic RP Data recorded the median value of a house in Canberra at $678,260. On this, the land and transfer duty would amount to $22,375.
However, the median unit value was $400,660 – in this case, duty only comes to $9,488. Make sure to factor this in when you are buying a house or apartment!
Can you get concessions on stamp duty?
Like the old saying goes, death and taxes – you just can't get around them.
Depending on your situation, there can be breaks and concessions for paying stamp duty on Canberra real estate. At the moment the ACT Revenue Office manages a Home Buyer Concession Scheme, which applies to new properties or ones that have not been sold as a residential premises before.
This can cut down on how much duty you pay by quite a lot, but only on homes costing $585,000 or less.
Like the old saying goes, there are only two certainties: death and taxes. However, you can lighten the load with the right help. For any further questions about Canberra real estate , don't hesitate to get in touch with the team here at Peter Blackshaw Real Estate.