All Topics / Creative Investing / Wrap Question – Stamp duty

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  • Profile photo of lifeXlifeX
    Member
    @lifex
    Join Date: 2004
    Post Count: 651

    When is stamp duty payable on a wrap deal?

    On signing of contracts or later when the full amount is paid and the title transfers into wrappees name?

    Is the Victorian State Govt. $5000 bonus stamp duty still valid for a wrappee to use?

    lifexperience

    Profile photo of pelicanpelican
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    @pelican
    Join Date: 2003
    Post Count: 454

    LifeX

    Stamp duty for the wrappee is payable at time of actual settlement… i.e. they pay off the loan / re-finance….

    $5k..eligbility – Sure is !!

    Cheers

    Scott

    Profile photo of FWFW
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    @fw
    Join Date: 2002
    Post Count: 478

    I had an interesting experience with the FHOG.
    I had two contracts that went through within a week of each other, and after the 1st May. One got $12k, the next one (which settled later!) got $7k.
    I have no idea why!!!
    Needless to say, I’ve recommended the second owner ask some pertinent questions.

    Keep smiling
    Felicity 8-)

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Lifex

    Scott operates in a different State to us.
    I am assuming you are referring about Victorian legislation. In case you are not in Qld the duty is payble prior to the posession date and long before settlement which could be in 25 years.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
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    @terryw
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    In NSW, I beleive stamp duty is payable within 3 months of exchange of contracts.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of delboydelboy
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    @delboy
    Join Date: 2003
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    Terry

    Is that 3 months from exchange of title contracts when the wrapee refinances or sells?

    Or is it 3 months from the beginning of the wrap?

    Delboy

    Profile photo of lifeXlifeX
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    @lifex
    Join Date: 2004
    Post Count: 651

    Thanks for quick replies scott, terry, felicity and richard.[cowboy2]

    Del. I beleive exchange of contracts is at the start of the wrap deal.[dead2]

    lifexperience

    Profile photo of TerrywTerryw
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    @terryw
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    Delboy

    That is 3 months after signing the contract, ie just after they move in.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of lifeXlifeX
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    @lifex
    Join Date: 2004
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    So, If I can clarify,
    if your wrap client has to pay stamp duty at time of signing contract (except in Queensland).

    Is this an additional cost to them, or do most wrappers allow for this cost out of deposit they receive (in the sale price)?[confused]

    lifexperience

    Profile photo of TerrywTerryw
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    @terryw
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    X

    It is up to the wrapper. It is better to get them to pay for it themselves I think. either way, I guess it means less deposit to the wrapper.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of lifeXlifeX
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    @lifex
    Join Date: 2004
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    Ok, to confuse things. I have had a property lawyer tell me that (in Vic), Stamp duty is payable on transfer of titles. Which could be 2,5 or 25 years later,,,???????

    Is this one of those legal “It can be what you want it to be type things????[dozey][confused]

    lifexperience

    Profile photo of TerrywTerryw
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    @terryw
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    In Vic, I beleive that is correct. I have wrapped in Vic and the wrappee did not need to pay stamp duty until they cashed me out- ie when titles transferred into their names.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of lifeXlifeX
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    @lifex
    Join Date: 2004
    Post Count: 651

    Ah, ok got it.
    Thanks Terry.

    lifexperience

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