Buying a house can be an exciting time in your life but there are some aspects of purchasing a home you need to understand before committing to purchasing.
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Stamp duty is a tax levied by state governments on property purchases. The amount you will pay in stamp duty varies between states and territories so you need to check your state guidelines before buying to calculate how much you will have to pay.
"Stamp duty can be quite a large amount," said Adrian Kelly, president, REIA.
"It is the largest component of the transaction costs of acquiring a property. For that reason the potential buyer needs to factor in the amount to ensure their finances cover this."
Most state governments waive stamp duty for first-home buyers purchasing homes valued below a certain threshold. The amount a buyer pays varies according to:
- Whether they are an owner-occupier or investor
- Whether they are a first-home buyer
- Whether it is an established home, a new home or vacant land
- The property's sale price.