All Topics / General Property / My first property & stamp duty

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of GengisGengis
    Join Date: 2003
    Post Count: 4

    Hello everyone,
    I stumbled across this forum while researching stamp duty, I’m glad I found it because your advice and experiences are all excellent, so I will share my own.
    I finally bought my first property :D after saving up for the deposit. Its a nice 2br unit in Bankstown that I got off the plan and is nearing completion. I plan to live in it for 6 month to qualify for FHOG and then rent it out because there is no way I can live there long term.
    I would never have done this without my parent’s help who refinanced their home so they are guarantors so I don’t have to pay the whopping loan insurance.

    It wasn’t a smooth ride getting it though, I planned on borrowing the stamp duty as well which was $10k. Initially I was told that this wouldnt be a problem so I put the deposit down.
    Time passed and it turns out that I couldn’t borrow the stamp duty because of my income so now I’m going to have to use the FHOG and 3k out of my pocket to foot that bill and to a 24 year old guy like me thats a big kick in the pants.

    What I want to know is, everyone here pays stamp duty too right? How the heck can everyone here afford it, its a huge expense on top of the purchase price.
    Also whats the point of FHOG when I’m going to give it straight back to the goverment, plus another $3k of my hard earned cash?

    Luckily I can live with it, I planned on buying nice furniture with the grant and help with the repayments so I guess its not too bad.

    Anyway I hope I’m not bellyaching, I’m just frustrated and sharing my experience.

    Cheers all

    Profile photo of melbearmelbear
    Join Date: 2003
    Post Count: 2,429

    Hey Gengis, as you said, it’s better to be given $7K as a freebie towards your costs than not receiving any handout at all, which I think is the way the majority of us on this board started.

    As for ‘affording’ it, it comes into our calculations when working out whether or not we can afford to invest. It is a ‘Cost of Doing Business’, and if we don’t have it, we cannot afford to do the business.


    Profile photo of annaw2annaw2
    Join Date: 2003
    Post Count: 178

    Hi Gengis,

    The S/D is a big expense for sure, even bigger when there are multiple properties. And we all have to pay, but you have taken the plunge and become a property owner – congratulations. Maybe a review of S/D that we hear talk of from time to time will happen but we wont hold our breath!! S/D is less on Queensland property purchases.


    Profile photo of CornelBassonCornelBasson
    Join Date: 2003
    Post Count: 62

    Hi Gengis

    Congratulations on the first place.[:)][:D] I was in a similar boat 4 Months ago when I bought my first place at the age of 22. I had no idea about anything and the bank stuffed up my 7k FHOG and told me 2 hours before settlement that I had to come up with 6k for my legals and other cost. I was a very angry man. Lucky for me Dad helped me out…but it was a big drama and my stress levels went up 400% in a matter of seconds. I only received the FHOG 2 weeks after settlement, apparently they lost my papers somehow and then magically found them again and fixed it up. All I can say is keep believing and work hard and your dreams will come true if it doesn’t work out the first time try again and make it work.


    Profile photo of Pebbles_2Pebbles_2
    Join Date: 2003
    Post Count: 37

    After buying a house and having to pay $14,500 stamp duty, I too was a bit angry.
    Queensland have a better system than we do here in Victoria. Victoria pays the highest stamp duty than any other state.
    Victorian’s only pay stamp duty on an existing home. You don’t pay stamp duty on a house you build.
    Where as in Queensland they pay stamp duty on existing homes and new homes, but their stamp duty is less. So it is distributed amongst the two. I’m pretty sure this is the case, correct me if I am wrong.
    Why can’t every state be the same?????
    Make it fair.

    Profile photo of shaunwalkershaunwalker
    Join Date: 2003
    Post Count: 403

    I know what you mean, when i bought my first ip it was a real eye opener, i thought i knew what i was doing as i had already bought a property 3 years ago. as for stamp duty across the states. go to reserve bank comission and click on the web page, they have made a reccomendation into having stamp duty the same for all states

    Profile photo of riffraffriffraff
    Join Date: 2003
    Post Count: 68

    only problem with the Governmentis that they will make all SD the same by bringing all the other states up to Vic levels!!
    I dont like tax[:(]

    What the mind of man can conceive and believe, it can achieve.

    Profile photo of GengisGengis
    Join Date: 2003
    Post Count: 4

    Thanks for your responses [:D].
    I guess I will just have to grin and bear it and after hearing what CornelBasson went through I guess I will count myself lucky. Well after what you guys say and the research/talking to other people theres just no way I can avoid the stamp duty.
    Well if anything my mind is more at ease so thanks again to everyone

    Profile photo of stargazerstargazer
    Join Date: 2002
    Post Count: 344

    Hi all

    I read recently that townhouses in SA do not attract stamp duty. Only the land component does.

    Its a loophole some developers have been using. However apartments do attract stamp duty.


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