First Home Buys Stamp Duty Exemption July 2014

LAmpeD on 21/06/2014 - 00:58

I'm a first home buyer in WA and I have an offer on a house for $545,000
I'm aware the stamp duty exemption today 0-$500,000 is nil and $22.51 dollars per ever $100 over $500k.
I'm aware the stamp duty exemption next month will change to 0-$430,000 as nil and unsure of the rate over this amount?

They like my offer on the house and are willing to proceed but the seller wants the contract to be done as 1st July 2014 (probably for his tax purposes).
This means my stamp duty exemption will be affected.
This financial year at $545,000 my stamp duty is 10,174.52
Next financial year at $545,000 the stamp is unknown because i cant find the rate it is going to be changed to. But i feel that if im paying 545-430=115 in stamp duty I will be getting no benefit as $115,000 x 22.51/100 = $25,886 over the rate a non first home owner would be buying at which would be $19,912.00.

Does anyone have any insight of the new rules so I can calculate the new stamp duty rates im unsure if it will be the same rate of $22.51 once over the threshold.

And can the seller force the contract to be in the next financial year, knowing that advertisement is in this one?

Im really at my borrowing limits now and because the sellers requests i may not be able to proceed.

Financial

Comments

  • AmpeD on 21/06/2014 - 01:14

    Im having trouble finding the details on the new changes

  • jc8 on 21/06/2014 - 01:36

    Upper limit is $530,000 I believe, and phases out proportionally.

    Seller can sell whenever he chooses.

  • Geewhizz on 21/06/2014 - 06:33
    +1

    You could always phone someone to find out what the new rate is.

    The seller CAN decide when he wants to sell, but you can also decide when you want to buy, if you're prepared to play chicken. lol

    I can find nothing to suggest that the rate is going to change. The drop in the threshold is designed to raise revenue, so it defeats the purpose somewhat to drop the rate at the same time.

    Given that (I'm assuming) the stamp duty will be paid in cash rather than from the loan amount, that increase in duty would sure put a hefty hole in your deposit.

    If I were you I'd be laying my cards on the table and telling the vendor the way it is - that if the sale can't be brought forward to this financial year, or the selling price reduced appropriately then you have no choice but to walk away.

  • bigticket on 21/06/2014 - 11:23

    1.As suggested above, call relevant government department as they should be clued up to the rate changes, if any, so you know how it effects you financially.

    2.Speak to your Solicitor/conveyancer/accountant for financial advise on this issue.

    3.Lastly, I believe in some states, the stamp duty is payable from the date of signing the contract not on settlement and therefore you should be on the higher threshold AND the seller will be happy as you can settle next financial year. You should confirm this from 1. and 2. above before proceeding. (ie. sign the contract in June and settle in July.)

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