Interstate Finance

Viewing 3 posts - 1 through 3 (of 3 total)

ArthurK
Participant
@arthurk
Join Date: 2003
Post Count: 36
May 23, 2004 - 3:01 pm
Hi all,
I live in NSW, but am considering buying IP’s in QLD. Can I acquire finance in my state to invest in another, or would I have to go to QLD to get a loan??
This question may sound silly to some, but I am just starting out…Cheers
ArthurK
smurfer
Member
@smurfer
Join Date: 2004
Post Count: 2
May 24, 2004 - 5:05 am
Hi Arthur,
Yes you can definitely source finance in NSW for interstate properties.
For your info, stamp duty is calculated a bit differently though state by state.
Purchase stamp duty is paid to the applicable Office of State Revenue (in this case Queensland) Mortgage stamp duty is paid according to what percentage of the security property lies in each state, eg; if your new loan is secured by 2 QLD investment properties combined value 400K and a NSW residence value 600K then you would pay 60% to NSW OSR & 40% to QLD OSR.
If you refinance a mortgage in NSW you may be eligible for an exemption on Mortgage Stamp Duty.
If you ever refinance your QLD properties in the future you will have to pay mortgage stamp duty to he QLD OSR again.
If I was in your situation I would be ensuring that the mortgage I get over these QLD properties is one that will last as it may be expensive to change in the future.
Check with the QLD Office of State Revenue to see if I am correct but as far as I know they have no plans to abolish Mortgage Stamp Duty in the future.
Good luck!
[cap]PS – This ain’t financial advice. Just what I’d do in your shoes!
David Smythe
Rebate Home Loans
http://www.rebatehomeloans.com.au
smurfer
Member
@smurfer
Join Date: 2004
Post Count: 2
May 24, 2004 - 5:50 am
Hi agian,
Just to clarify further;
The QLD OSR will exempt Mortgage Duty (to a degree) for the refinance of owner occuppied properties only.
With investment property refinances they provide no concessions at all.
I know that stamp duty may not be at the forefront of your mind when considering all this but I thought it was worth making you aware of the future implications now (in case you didn’t already know).
As a rule of thumb Mortgage Duty is calculated by the relevant Office of State Revenue at approx $4 payable for every $1,000 borrowed.
Therefore if you purchase 2 QLD properties and borrow 400K then you pay approx $1,600.
If in 3 or 4 years you want to refinance this mortgage then this amount will need to be paid to the QLD OSR again.
David Smythe
Rebate Home Loans
http://www.rebatehomeloans.com.au