Browse Forums Building A New House 1 Jan 06, 2015 6:53 pm Hi guys We are just in the process of obtaining a tender for a 'house and land' package and are just working out stamp duty payable. From our understanding duty is paid on the land only and not the house if construction hasn't started - is this correct? In the estate that we are looking at the house and land packages usually involve two contracts - one to developer for land and one to builder for house. Our understanding is that the developer has certain rights to the land but does not own it. From early discussions with our builder it seems that they themselves have bought the land outright and are now marketing the sale as 'house and land', so therefore I would assume it would all be under one contract as opposed to the usual way things are done there. I do need to confirm this with the builder. Does this then make a difference in terms of the stamp duty to be paid? I tried to find the info on the NSW Office of State Revenue website but am obviously not looking in the correct place - whatever the duty is it doesn't seem to be called Stamp Duty - I think it is Transfer of Land or Business Duty?? - Can anyone confirm that? I'd appreciate some clarification if anyone knows. Thanks Re: NSW Stamp Duty on House and Land Package 3Jan 06, 2015 8:05 pm It all depends on how the contracts are structured. If you are buying a package, it could either be one contract with one price in which case stamp duty is payable on the full amount or the contract could be separate land and construction in which case you only pay stamp duty on the land cost. Re: NSW Stamp Duty on House and Land Package 4Jan 06, 2015 8:47 pm Thanks AJW - that sounds like it could be right Re: NSW Stamp Duty on House and Land Package 5Jan 07, 2015 7:13 pm In QLD it's called transfer duty. We bought our land from the developer, then signed a separate build contract with our builder. We only paid duty on the land price. I think that if you buy a 'house and land package' you would pay duty on the total amount, just as you would if you were buying an existing home. Definitely check as for us it saved about $20k! Re: NSW Stamp Duty on House and Land Package 6Jan 07, 2015 7:43 pm LauraKG In QLD it's called transfer duty. We bought our land from the developer, then signed a separate build contract with our builder. We only paid duty on the land price. I think that if you buy a 'house and land package' you would pay duty on the total amount, just as you would if you were buying an existing home. Definitely check as for us it saved about $20k! Again depends upon how the contracts are drawn up. Many builders in NSW and ACT advertise packages but can and will do split contracts. Re: NSW Stamp Duty on House and Land Package 7Jan 07, 2015 8:54 pm Hi, Like the others have commented it comes down to the contracts - one contract or a split contract, you don't pay stamp duty on the building contract itself if it's not part of the land transfer (contract). In regards the builder putting together a "house and land package", sometimes they do buy the land but most often they actually have an "option" on the land and you'll be the eventual purchaser. Be careful too (if you aren't a first home buyer) -there's a grant available for blocks up to a certain value in NSW but can only be claimed once per block, some developers / builders are claiming this when you might be expecting to make the claim! Ask your solicitor/ conveyancer or your broker to clarify what your contract is and what your expected costs are going to be. Enjoy the build process!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: NSW Stamp Duty on House and Land Package 8Jan 07, 2015 9:14 pm Thanks guys - will definitely discuss with the builder and solicitor Just to clarify, I'm not a builder I've read my own council's LEP numerous times and worked with an architect to understand my own lot size and problems. 5 1780 We bought land in Tallawong Schofields NSW size 30m X 12.5m and planning to get double story house build around 350 sqm. We are thinking about having premium inclusions… 0 4082 Petercurtis You able to contact the certifier and get a copy of your structural plans, if they are not in your contract. If your home was approved via CDC then they… 1 19224 |