What is the term Stamp Duty and How it can be Calculated?

Stamp duty is a large upfront cost that can be tedious to pay for a borrower. However, it is an unexpected cost of purchasing a property that you need to know about. It is good to calculate property cost before the purchase, so you know how much it will affect your budgeting efforts and finances as a whole, so you adjust your home loan budget accordingly. Read on to learn further about stamp duty, what is its importance and how it's calculated.  

What is Stamp Duty?  

Stamp duty makes buying a home less attractive. It is actually an additional fee that the state and territory governments charge when purchasing property in Australia. However, the cost of stamp duty varies depending on where the property is located or purchased in Australia. 

  

Is stamp duty varies from state to state?  

Stamp duty is a state tax, meaning the amount you pay depends on which state you purchase in. Here are some of the factors that affect how much stamp duty you have to pay, I.e., Location of property, Property type, and investor's experience.  

If you want to find the rough estimate of what stamp duty looks like in your state, then use the ANZ stamp duty calculator; a calculator is beneficial in estimating the overall purchase price of a property so you can determine by the dutiable value of your property.  

How to determine stamp duty interest   

This stamp duty interest calculator is an easy way to calculate the amount of tax you owe depending on different input variables. To use this online tool, enter your personal information and click "calculate" for an output. Here are the variables you need to put on the stamp duty interest calculator.  

• Purchase price of a property  
• Select the state/location  
• Verify whether you are a homeowner or investor  
• Declare property type  
• Define whether you're a first-time home buyer  
• Declare that you're an Australian resident  

Who can qualify for Stamp Duty Exemption?  

Stamp duty exemptions and concessions may be available for eligible first home buyers, seniors, and pensioners in some states. There might also be discounts based on property value or your annual income.   

If you're a first-time buyer, then just keep in mind that each state has its own rules to calculate stamp duty rates; so, get advice from a first-time buyer mortgage broker if you're interested!   

So, as of now, you may have known what stamp duty is; you probably understand how difficult it can be to calculate. To make the process easier for you as a first-time buyer, use a stamp duty calculator or consult Mr Rajan Khatak- a trusted Mortgage Broker in Five Dock; he has been specialized in helping new homeowners like you. 

If you're thinking of purchasing your first home or investing in real estate in Australia, consult Your Finance Adviser's skilled and licensed home loan experts; they will help make the procedure easy for you.  

Your Finance Adviser is a well-managed finance advising company of Australia that has expert home loan brokers capable of providing valuable consultation to potential clients as per their needs. Get in touch with our finance experts now so we can work together to determine your perfect match!