Can someone please a give me advice on stamp duty and how this works when you purchase a block of units. Do you pay individual stamp duty if the units are on strata title or is there one stamp duty to pay. for example if the units are in a block of 4 and the cost is $320,000. I was told if there is an individual price on the units you can actually get the stamp duty worked out per unit and this would be cheaper . hope this makes sence to anyone who is reaading this.
Appreciate any help as I am new to this and in need of help.many thanks.Hi trac,
If the units are on one title then you pay one lot of stamp duty. If the units are strata titled then you pay pay stamp duty separately for each unit.thanks for your answer. If you pay stamp duty per unit is this cost worked out on the total price of the units (320,0000 divided by 4 units) this is probably a silly question but I am interested in buying a block of units and have not done so before so it's all new learning for me. thanks for your help too.
Are all the 4 units on one title or separate title?
One lot of units are on separate titles and the other lot I am looking at are on one title.
On the block of 4 units (separate titles) purchased at $320k, you will pay stamp duty for each unit separately at a purchase price of $80k (assuming each unit is of the same value).
You could use some online tools for calculating the exact amount of stamp duty for both scenarios – units on one title or strata titled. I use the National bank online calculators:
http://www.nab.com.au/Personal_Finance/0,,81262,00.htmlThank you so much Sanjiv for your help. have a great Easter!
Hate to disagree with Sanjiv but that is not the case if you are in Qld.
Richard Taylor | Australia's leading private lender
I think in Vic it is not the case either. The SRO can take the value of the whole purchase (ie all the units) and assess the stamp duty on that – which would be much higher.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Same in Qld Terry.
Richard Taylor | Australia's leading private lender
That is not the case in the NT either. Certainly if they are all on one title then one lot of stamp duty is paid. If they are all on separate titles then the LTO will look at them to decide if they were all one transaction. Things they will look at are, whether the vendor and the purchaser are the same for each unit, whether there was a discount for buying them all together etc. If the LTO thinks they may be all one transaction they will then send you a requisition letter where you have to answer all the questions and get supporting statements from the RE agent, vendor etc.
Cheers
LINAR
Well that's certainly a trap for unwary players. I wonder if it would work if you bought each (strata titled) unit with a different contract date e.g one months difference or something, if the vendor was willing. Anyone tried that?.
Cheers
ElkaHello,
The last property i bought was in victoria and it was a commercial property ( november). The stamp duty on $350,000 was approximatly $18,000 + costs. I added this onto the purchase costs and i did not mind paying this as the property still returned 10 % + rental return. their are a lot of variables with stamp duty and mine was just one example.
Have a nice day.
Dom
Hello Dom
This is totally off topic but would you mind saying what sort of commercial property you bought (retail/office/industrial) and whether it is in a major town or rural. That's a nice return.
Thanks
ElkaHello Elka,
I don't mind letting you know but i have in my previous posts posted information on this property
I personally dont class it as commercial but the banks unfortunatly do( 30% deposit). It is an 8 bedroom student accomodation house-set up.
It contains two bathrooms two kitchens common room ,living room and dinning room. It is in Frankston and right accross from the monash university. Each tennent pays $110 per week per room. I supply Internet and utensils. And the electricicty is capped at $400 per quater. I paid $350,000 + costs.
I setteled on the 2nd of january this year and i have spoken to some agents which tell me i could sell for $450,000.
But i dont know anybody who beleives what agents say LOL.
Hope this helps
DomThanks Dom. Sounds great.
Cheers
Elka
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