Melbourne’s Best Independent Mortgage Broker – available 7 days a week

What You Need to Know About Stamp Duty and Buying a Property

Stamp duty on property

Share This Post

Is Stamp Duty Still Required?

Stamp Duty is one of the highest costs associated with buying a property in Australia. Different states can refer to stamp duty as land transfer tax and in the end, stamp duty is nothing more than a tax imposed by State Governments across Australia.

The money raised by Stamp Duty more often than not is included in consolidated revenue and spent by State Governments. In 2020 38% of the Victorian Government, tax is stamp duty.

Given that stamp duty for a $1 million home is approx. $55,000 can prove to be quite substantial. In short, this means $55,000 of your funds are consumed by the Government.

While in Victoria first home buyers pay no stamp duty for property prices up to $600,000, an independent mortgage advisor in Melbourne What If We Finance believes the government budget is getting a free hit from record property prices and is in effect taxing people more and more as property prices rise.

In short, the Government is taxing us more and there has to be a better way when it comes to stamp duty.

NSW a new approach

In the NSW Government in 2020 is going to offer homebuyers a different approach. Rather than slugging home buyers with a large stamp duty bill when buying a property, homebuyers can pay smaller amounts of land tax every year. 

The government still gets income every year and home buyers have a lower upfront cost. Melbourne mortgage broker What If We Finance believes this also allows the government to benefit from increasing property prices.

The details of the NSW scheme are still being finalised but this has laid down the gauntlet for other states. Victoria did trail a 50% reduction on stamp duty for homes under $1 million but this was a limited time offer and subsequently, the Victorian Government increased stamp duty rates!

man signing document

The Industry Says

Industry research is showing stamp duty is a considerable cost to home buyers and record home prices make buying a home even harder.

State Governments may be benefitting from rising home prices at the expense of home buyers. In Victoria even as a first home buyer, it is getting harder and harder to buy a home under $600,000 and home prices above $715,000 pay full stamp duty. Even for first home buyers.

The industry through the Real Estate Institute is calling for stamp duty reform.

The proposal is to introduce a two-stream collection model for stamp duty that would provide buyers with the option to pay upfront or ongoing annual fee.

An REI survey from 2020 showed three in five homebuyers would opt for an ongoing annual fee for stamp duty if given the choice.

These results tend to make sense as home ownership becomes more affordable.

As you can see stamp duty is a tax and a considerable cost that needs to be considered when buying a home. The cost of stamp duty varies according to the home price, whether it is an owner-occupied or investment property and also your residency status.

The net result of this it is becoming even more important to talk to your mortgage broker What If We Finance and understand the costs involved with buying a home and also your borrowing options and property budget. Contact What If We Finance today to find out more.

Get updates and learn from the best

Subscribe To Our Newsletter

More To Explore

EXCELLENT
176 reviews on
Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
Read more
hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
Read more
Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
Read more
Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
Read more
S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
Read more
Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
Read more
Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
Read more
Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
Read more
Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
Read more
Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
Read more