Welcome to the second in a series of 3 articles about the financial benefits of buying new homes off the plan.
Stamp Duty Savings
Stamp Duty is now called 'Transfer of land or business duty'. In real estate terms, this is a duty that you pay on the sale or transfer of land, including improvements in NSW.
This means that if you purchase real estate under one contract for the land and the improvement on that land (the house), you will pay duty on the total purchase price.
If you purchase a new home where the vacant land is sold under one contract and there is a separate building contract for the construction, you only pay duty on the land value.
Here is an example of how this could affect you:
For the same purchase price of $578,000 you would save $16,430 in duty. You can calculate this for yourself on the Revenue NSW site: https://www.apps08.osr.nsw.gov.au/erevenue/calculators/landsalesimple.php
As an investor looking for a good return on your investment, buying off the plan already puts you ahead.
*Note: there are even more savings for eligible first home buyers. Contact us for details.