When buying a home, it’s important to consider that you will have additional expenses on top of the cost of the actual property. Stamp duty and property taxes are a reality of buying real estate in Queensland, and should be budgeted for early in your purchasing process, to avoid any financial hiccups once you’ve found your dream home. We’re compiled a blog to explain what property taxes are involved, and what stamp duty actually means.
Queensland property taxes
Property buyers in Queensland should be aware of other potential taxes and charges. These may include:
- Land tax:
Property owners with a certain land value may be subject to an annual land tax.
- Stamp duty:
Stamp duty is a state-based tax imposed on property purchases.
- Foreign Investor Surcharge:
People or companies based overseas purchasing property in Queensland may be subject to additional surcharges.
What is stamp duty?
Stamp duty (or transfer duty) is a tax imposed by the state government on property purchases. In Queensland, stamp duty is calculated based on the purchase price of your property. It is payable within 30 days of your contract becoming unconditional.
You may be eligible for a concession or exemption on stamp duty if you are a first-time home buyer or purchasing a property off-the-plan. If your new property is your primary residence, you may consider applying for a principal place of residence concession (PPR).
How much does stamp duty cost?
As mentioned above, the cost of your stamp duty will depend on the price of your property. The amount of stamp duty you pay may also depend upon the type of property you purchase, and whether you qualify for a concession. The Queensland Government has an online stamp/transfer duty calculator that can help you to get an idea of how much you may need to pay.
When purchasing a property, it’s important to budget for additional costs such as stamp duty to ensure your journey to homeownership is a smooth process. If you’re unsure about stamp duty and would like expert advice, you can speak to our expert team by calling 1300 1BORRO.