My first post and a question.

Political motivation aside, wouldnt it be a question of whether the transaction is going to benefit you in the long run, rather than saving 1% on stamp duty?!

I dont like paying stamp duty any more than the next person, but its an “evil” i can do nothing about! Only other choice is to not invest, but think of what you could be missing out on!

Hi,

There has been plenty of press lately about the windfall gain that the Victorian government has pocketed from Stamp Duty in recent years.

The boon has arisen by a circumstance that is very similar to salary ‘bracket creep’ in that while the rates have not increased as such, the rise in the value of properties has meant that more is collected.

I often wonder how the present Vic. government would function but for the massive revenues collected from gambling and stamp duty.

However from an investing perspective, the higher stamp duty just becomes an increased cost to business (the business of property investing).

It’s swings and round-abouts as I see it – in Qld you have to pay the stamp duty within XX days of the contract being signed, in Vic. it is due on settlement. In NSW, property is generally more expensive, so while you pay less in stamp duty, finding a cheap property can be more difficult.

At the end of the day you just need to factor the charge into your number analysis and so long as you’re making headway towards your investing goals – keep your eye on the big picture.

Regards,

Steve McKnight

P.S. Silkwood – thanks for your post and welcome to the community.

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