Does anybody know how the NSW stamp duty changes on the sale of investment property will affect Wraps. I am thinking the wrapper will have to pay it when selling to the wrappee, however, am still waiting on legal opinion. Has anyone else considered this situation ?????
JBHey JB,
This is something I am wondering also – I’m surprised it hasn’t been discussed more here.
As there is no new contract at the end of the wrap when title officially passes, I would imagine the new stamp duty couldn’t be due then – it must be due when the Instalment Sales contract is drawn up, at the start. However I am no lawyer (yet – only one in training!) so it would be great to hear the advice you receive.
I think the sticking point is that the new duty only applies to sales where a 12% profit as a minimum is made. So if you arrange your wrap so that the markup is say 11.9%, (and then have a higher interest rate markup) then you won’t have to worry.
Look forward to seeing what other NSW wrapper’s think…
Nick
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