What costs have you in your state for selling and buying?
Go to the state revenue office web site in each state or google stamp duty calculator
NSW I think also has a vendors tax also
then there is real estate agent fees
Also if investment property Capital gains tax may be payableHi Duckster,
Sorry,probably should explain question better.
On a $500,000 house in your state how much would it cost (your own home) for example in Queensland,
Real estate agent fees approximatly.
In general with selling and then repurchasing an owner/occupier home,
Agent $14000,00
stamp duty fees $10,000
And connections $1000 to $1500
Total around $25,000
Queensland Real Estate Commission Table
Sale Price Comm + GST Total $155,000 = $4,325 $433 $4,758 $160,000 = $4,450 $445 $4,895 $165,000 = $4,575 $458 $5,033 $170,000 = $4,700 $470 $5,170 $175,000 = $4,825 $483 $5,308 $180,000 = $4,950 $495 $5,445 $185,000 = $5,075 $508 $5,583 $190,000 = $5,200 $520 $5,720 $195,000 = $5,325 $533 $5,858 $200,000 = $5,450 $545 $5,995 $210,000 = $5,700 $570 $6,270 $220,000 = $5,950 $595 $6,545 $230,000 = $6,200 $620 $6,820 $240,000 = $6,450 $645 $7,095 $250,000 = $6,700 $670 $7,370 $260,000 = $6,950 $695 $7,645 $270,000 = $7,200 $720 $7,920 $280,000 = $7,450 $745 $8,195 Sale Price Comm + GST Total $290,000 = $7,700 $770 $8,470 $300,000 = $7,950 $795 $8,745 $310,000 = $8,200 $820 $9,020 $320,000 = $8,450 $845 $9,295 $330,000 = $8,700 $870 $9,570 $340,000 = $8,950 $895 $9,845 $350,000 = $9,200 $920 $10,120 $375,000 = $9,825 $983 $10,808 $400,000 = $10,450 $1,045 $11,495 $425,000 = $11,075 $1,108 $12,183 $450,000 = $11,700 $1,170 $12,870 $475,000 = $12,325 $1,233 $13,558 $500,000 = $12,950 $1,295 $14,245 $525,000 = $13,575 $1,358 $14,933 $550,000 = $14,200 $1,420 $15,620 $575,000 = $14,825 $1,483 $16,308 $600,000 = $15,450 $1,545 $16,995 $625,000 = $16,075 $1,608 $17,683 $650,000 = $16,700 $1,670 $18,370 And for stamp Duty in Queensland as an example to purchase an owner/occupier home
Purchase Price : $500,000
Loan Amount : $300,000
State/Territory : Queensland
Stamp Duty On Transfer Of Land : $8,750
Registration of Transfer of Land :$966
Stamp Duty On Mortgage :$460
Registration of Mortgage :$124
Total Fees and Duties :$10,300
http://www.nmb.com.au/nmb/brokerweb/calculators/stampduty.asp
Then the phone connection when you move in and electricity charge,
Telephone line connection
A working telephone socket exists from a previous connection and a Telstra technician is not required to visit your property or premises.Standard Connection $59.00 $59.00 Temporary Connection* $159.00 $159.00 Telephone line connection with a technician visit
A previous telephone service existed at your premises and a Telstra technician is required to visit your property / premises to reconnect existing suitable cabling at the distributor and / or the first socket.First Connection Standard Connection $125.00 $75.50 Temporary Connection* $225.00 $175.50 Telephone line connection
(a) New telephone line connection – a telephone service has not previously been connected at your property or premises (although we may have previously installed cabling to your property or premises and you may be able to hear a dial tone); or
(b) Telephone line connection with a technician visit with cabling work – a previous telephone service existed at your property or premises and a technician is required to visit your property or premises to install and / or work on the cabling up to the first socket in the property or premises.First Connection Standard Connection $299.00 $179.00 Temporary Connection* $399.00 $279.00 Second network termination device for services provided over Telstra Velocity Standard Connection $299.00 $179.00 Temporary Connection* $399.00 $179.00 With electricity could not get a straight answer as there are many companies with different tariffs and it depends on where you are moving.And i did not include moving costs and rental costs (accommodation) during the process
Not sure about land tax either. In my opinion the costs are ridiculous and i would slap that on the sale of my property to cover it.
Hope that clarifies it a little.
Dom
Dom,
In Vic, you would likely give the Agent 5% commission just for selling the place.You would pay 5-6% in government costs to buy the new house (about double Qld. Stamp Duty Rates)
Moving costs and incidentals would be insignificant.
… And Just to confuse you more, consider market moves.
If you sell and then start looking for a new place, what happens if the house market price goes up 10-20% ?
What if you buy the new place and then can’t sell, you may have interest rate expenses on 2 mortgages. Imagine if interest rates spike 10%.
Ideally, if you could sell your place for a good price and buy the new place at a discount in a flat or declining market with stable interest rates… this would effectively recover the cost of the move.
The other thing I would consider, is how desirable the new house is. If it is a better/bigger house in a more popular suburb, the long term capital growth may far outweigh the transaction costs sting.
Don’t miss the forest for the trees, the costs at the time of change may hurt, but could be insignificant in the long term gains of a better property.
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