Browse Forums Building A New House 1 Feb 17, 2012 12:07 pm Hi, Please help if anybody can. I have bought a land & house package in south eastern suburbs of Melbourne. I am a first home buyer. My land was settled on 27th Jan. Construction is due to start in two weeks time. Land is worth $165000. Initially I was asked to pay $4970 of stamp duty on transfer. But now yesterday I was informed by my conveyancer that the stamp duty has been revised to $6866 and I am to pay the difference of $1896 within a month. I think that the revised stamp duty is too much. Considering I am a first home buyer and there is a 20% discount on stamp duty. I tried some of the online stamp duty calculators for Victoria, they all show stamp duty around $5000 mark. Which I think is fair. Does anybody find anomalies in above figures? What will be the correct stamp duty for $165000 land purchase for a first home buyer in Victoria? I think stamp duty is only paid on the land and not the building which is still to be built. Thanks in advance. Aj Re: Stamp duty on house and land package 2Feb 17, 2012 1:51 pm azeeth Hi, Please help if anybody can. I have bought a land & house package in south eastern suburbs of Melbourne. I am a first home buyer. My land was settled on 27th Jan. Construction is due to start in two weeks time. Land is worth $165000. Initially I was asked to pay $4970 of stamp duty on transfer. But now yesterday I was informed by my conveyancer that the stamp duty has been revised to $6866 and I am to pay the difference of $1896 within a month. I think that the revised stamp duty is too much. Considering I am a first home buyer and there is a 20% discount on stamp duty. I tried some of the online stamp duty calculators for Victoria, they all show stamp duty around $5000 mark. Which I think is fair. Does anybody find anomalies in above figures? What will be the correct stamp duty for $165000 land purchase for a first home buyer in Victoria? I think stamp duty is only paid on the land and not the building which is still to be built. Thanks in advance. Aj That doesn't sound like just stamp duty - it's likely that the other attendant costs for the transfer of the block have been thrown in there (ours worked the same way). For our block (which cost us $170K) which was settled back in August 2011 we paid about $5300 initially for stamp duty and other minor fees for this and that to the SRO (or rather the bank did), plus another ~$650 later on when the titles were actually drawn up and sent to us (the bank also charged us a $150 settlement fee on top). We did purchase the land ourselves though, so I suspect the difference is probably a "administration" fee or two charged by the builder - I'm not 100% up with how builders handle the land purchase wrt settlement with your conveyancer, but if it works the way I think it does then they would be slugging you a bit extra for administration because that's what volume builders do. I would be sending a please explain regarding the $3k difference between the raw stamp duty amount and what you are being charged - there will be some fees and charged on top which might bring it up to near the $5.5k - $6k mark but there is a hidden ~$1k in the updated amount that we didn't pay if you're looking for a frame of reference... Some people apparently have nothing better to do than comment on other people's sigs. Re: Stamp duty on house and land package 3Feb 20, 2012 8:54 am Stamp duty as far as I am aware is paid on the value of what you are buying. As you bought a house and land package through the builder, wouldn't it be calculated on the total (house and land). It seems to me like you paid the stamp duty on the land, and once the house selections had all been m,ade and final price locked down, they now need you to pay the revised total, based on the total price of house plus land Re: Stamp duty on house and land package 4Feb 20, 2012 9:19 am Stamp Duty is paid on the Transfer of Land. Even though this is a house and land package, the land value is $165K, and so stamp duty is calculated on that. The fee for preparation of the Transfer of land and registration plus conveyancers fee would only be a few hundred dollars. I would be asking your conveyancer to explain why and alsoquerying this with the SRO in Victoria. Re: Stamp duty on house and land package 6Feb 20, 2012 2:54 pm We purchased our block (Nov 2011) and went into a contract for construction after a month. We paid for the full stamp duty and is now in the process of doing a refund for the FHO and PPR concession. Check with your builder if this is the case for you and that you will be eligible for the refund eventually. Building Pagoda 31 MkII 28/11/11 - Tender 20/12/11 - Contract Signed 12/06/12 - Settlement Now on to never-ending post handover activities! Re: Stamp duty on house and land package 7Feb 20, 2012 3:49 pm momofthree We purchased our block (Nov 2011) and went into a contract for construction after a month. We paid for the full stamp duty and is now in the process of doing a refund for the FHO and PPR concession. Check with your builder if this is the case for you and that you will be eligible for the refund eventually. Thanks everyone for the posts. This is exactly what has happened with me. I checked with my conveyancer. He returned my call and just informed me that stamp duty is paid in full initially and FHO & PPR 20% discount will be refunded in about 2 months after construction has started. And this is only with bloody Westpac apparently. 13 6605 2 5483 Scientists have used random matrix theory to demonstrate theoretically that the neutrino mass hierarchy can be explained mathematically. When a substance is fragmented… 21 20639 |