When negotiating a price for the purchase of a property, do not forget to take into account the Stamp Duty that will become payable by you at settlement. Stamp Duty is normally the biggest added expense to be taken into account by the purchaser.
Stamp Duty in Victoria is based on the value of the property, usually the purchase price and MUST be paid at settlement. If there is a mortgage, there will also be additional Stamp Duty.
You may be eligible for Stamp Duty exemption or benefits. Check with Right Choice Conveyancing.
Should you wish to establish how much will be due to be paid by you at settlement, you can contact this office for further details or visit the State Revenue Office through our links page.
Land Titles Office
At settlement, you will also be required to pay fees to the Victorian Land Titles Office for the registration of your documents. Included in these fees will be registration fees on the Transfer of Land which amount will depend on the Purchase price of the property, and registration fees on the mortgage (usually $110.00). Should you wish to establish how much will be due to be paid by you at settlement, you can contact this office for further details.
Capital Gains Tax
Any prospective purchaser should be aware of the potential tax liability associated with the purchase. For example unless the property is used as your principal residence, you may be taxed on any profits made by you on the re sale of such property. If you intend to sell within 12 months of purchase, or if you believe you might be affected by any Capital Gains Taxes, you should contact the Tax Office or your Accountant.
As part of your application to lending institution, it is normal for a lender to charge an application fee. Don’t be reluctant to bargain with your Bank on this. Remember the lending market is competitive, and they want your business.
It is also likely that if you are obtaining finance from a lending institution, the lender will require you to produce a fully paid up Insurance Policy or Certificate of Currency prior to settlement. If you are intending to purchase in the future, start shopping around for Insurance premiums now.
Right Choice Conveyancing charge a fixed quote fee, plus the normal disbursements. Contact us today to get a quote.