Hi Steve, at your first seminar in Sydney – you mentioned one of your tactics to build your property portfolio was the deferrment of stamp duty. Can you pls elaborate on this cause when I’ve asked my conveyancer to do this they’ve insisted the stamp duty is paid prior to settlment. Shedding a little light on this would be great! Thanks.[blink]
I am guessing Steve meant using delayed settlements (which defers Stamp Duty here in VIC). Check with your relevant state revenue office to see how it works in your state.
I think the lucky people in NSW get to pay SD within 30 days of signing the contract regardless of when they get the property.
Alternativley you could explore the use of an option to get the same result.
Or you can just not pay the revenue office the SD and wear the cost of their penalty interest. I have heard of a developer who was happy to do this as it helped his overall cashflow. Of course he paid the SD later when things freed up – but it allowed him to complete the deal.
Hope this helps,
Greg
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