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From: Steve Hadfield


As a new investor and having recently discovered this forum, I am amazed by the wealth of knowledge and information available here.

Thankyou for the information you all continue to provide which so greatly assists new investors such as myself.

Can anyone assist with providing the following information:

* Is stamp duty in NSW payable before settlement of the property? If so, when should it be paid?

* If I purchase a property (borrowing 80% of purchase price), and then immediately sell, can I then enter another transaction immediately on the exchange of contracts on the first deal. What I am trying to say is, does the exchange of contracts free up my equity again and allow me to enter into a new purchase. Will banks lend on another deal knowing that I have an exchange completed on a previous deal, or do I need to wait for settlement of the first property.

I don't know that I asked this question very well, but I hope I can be understood.

Thanks.

Steve H.
[email protected]

 

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Reply: 1
From: Mr S


Hi Steve,

Dont know about whether the banks will let you do what you want, but from experience I can safely say that Stamp Duty can be paid upon settlement. (In NSW)

You will simply need to instruct your solicitor and your lender that this is what you want to do and they'll draw down the funds for the Office of State Revenue on the day of settlement.

I even go so far as having the lender & solicitor take their fees from settlement and not from my pocket.

Cheers - Martin

 

[Alex Investor]

Reply: 1.1
From: Alex Investor


Same here. When ever I buy a IP I always pay stamp duty on settlement. I try and not use any of my own money.

Alex