When is stamp duty payable on a wrap deal?
On signing of contracts or later when the full amount is paid and the title transfers into wrappees name?
Is the Victorian State Govt. $5000 bonus stamp duty still valid for a wrappee to use?
lifexperience
LifeX
Stamp duty for the wrappee is payable at time of actual settlement… i.e. they pay off the loan / re-finance….
$5k..eligbility – Sure is !!
Cheers
Scott
I had an interesting experience with the FHOG.
I had two contracts that went through within a week of each other, and after the 1st May. One got $12k, the next one (which settled later!) got $7k.
I have no idea why!!!
Needless to say, I’ve recommended the second owner ask some pertinent questions.Keep smiling
Felicity
Lifex
Scott operates in a different State to us.
I am assuming you are referring about Victorian legislation. In case you are not in Qld the duty is payble prior to the posession date and long before settlement which could be in 25 years.Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
In NSW, I beleive stamp duty is payable within 3 months of exchange of contracts.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry
Is that 3 months from exchange of title contracts when the wrapee refinances or sells?
Or is it 3 months from the beginning of the wrap?
Delboy
Thanks for quick replies scott, terry, felicity and richard.[cowboy2]
Del. I beleive exchange of contracts is at the start of the wrap deal.[dead2]
lifexperience
Delboy
That is 3 months after signing the contract, ie just after they move in.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
So, If I can clarify,
if your wrap client has to pay stamp duty at time of signing contract (except in Queensland).Is this an additional cost to them, or do most wrappers allow for this cost out of deposit they receive (in the sale price)?[confused]
lifexperience
X
It is up to the wrapper. It is better to get them to pay for it themselves I think. either way, I guess it means less deposit to the wrapper.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ok, to confuse things. I have had a property lawyer tell me that (in Vic), Stamp duty is payable on transfer of titles. Which could be 2,5 or 25 years later,,,???????
Is this one of those legal “It can be what you want it to be type things????[dozey][confused]
lifexperience
In Vic, I beleive that is correct. I have wrapped in Vic and the wrappee did not need to pay stamp duty until they cashed me out- ie when titles transferred into their names.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ah, ok got it.
Thanks Terry.lifexperience
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