Homebuyers know that they must be prepared to pay the negotiated price for their new house. However, along with getting financed for their mortgage, people also must budget for the Australian stamp duty that will go along with the purchase amount of their home. They can adequately prepare and get their budgets in order before they buy a home in any Australian state by keeping these strategies in mind.
Know the Stamp Duty Rate in the State
Each state in Australia is responsible for setting its own stamp duty rate. This rate varies and can differ greatly from state to state. As such, people should know the percentage that they will be expected to pay. They can find this information online or by contacting a qualified real estate agent. Once they know the stamp duty percentage that will apply to their transaction, they can prepare their budgets accordingly.
Use an Online Stamp Duty Calculator
People can also budget for the stamp duty by using an online stamp duty calculator. Once they discover the percentage of the tax that will apply to their transaction, they can use the calculator to determine the overall amount that they will be expected to pay. With this total in mind, they can begin saving money or apply for the appropriate financing to cover this added expense.
Claim Exemptions or Discounts if Applicable
A number of Australian home buyers could be eligible for discounts or exemptions from the stamp duty if they meet certain qualifications. While these qualifications can vary by state, some of the most common criteria allow people who are new to the home buying experience or on tighter budgets to save money on this expense. For example, people who are buying their first home may be exempt from the duty or entitled to pay a smaller amount. Likewise, people who are retired and drawing pensions also can be exempt from the tax. Some states also give exemptions or discounts to people buying a family farm. Before they complete their transactions, people should find out if they are eligible to claim any exemptions or discounts for the stamp duty.
Buying a home is a milestone to which many Australians look forward. They can enjoy their home ownership and be assured of a successful transaction by knowing how much they must pay for the Australian stamp duty. They can prepare their budgets before buying when they remember these strategies.