Hi guys,
Sorry about the newbie questions in advance!
I am looking to purchase a new block of land for approx. 300k and titles won’t be released until around December 2017. How much cash deposit will I need to pay for the land and when will the remaining balance be due on settlement (when titles are released).
Also, is stamp duty payable along with the deposit or when titles are released?
Thanks for your help!
Brad :)
Deposit is up to your negotiating skills. Usually you will have to pay for the block in full at settlement.
Duty will depend on the state the land is located in.
In NSW it is due 3 months after exchange, but if it is off the plan the duty is not due until 12 months after exchange or on completion (or assignment). But if it is just land with no building it may not meet the off the plan definition.
Confirm with your solciitor
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
Great, thanks for the reply Terry!
In regards to the initial deposit, pay as little as possible. Often they ask for 10% of the purchase price. Make sure its refundable if you dont proceed with the purchase. I have held blocks of land for as little as 1k deposit.
The remaining balance will be determined by what LVR you are intending or capable of purchasing at. If a 90% LVR and you paid 1k holding deposit then it would 30k – 1k = 29k plus the applicable stamp duty rate for your state.
Im in WA so first home buyer would pay $380 in govt. fees only and a non first home buyer will pay $9,200 stamp duty on a 300k purchase. Stamp duty is payable at settlement and refunded to a FHB once construction loan is partially drawn at slab down stage in most instances.
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This reply was modified 8 years, 2 months ago by
Colin Rice.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Awesome, thanks Colin! I checked with the developer and they are asking for a 10% deposit with settlement due around December 2017. I have more than 10% deposit available but will try to negotiate them down.
Thanks for your help :)
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This reply was modified 8 years, 2 months ago by
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