Settlement Dates and Land Tax

[ritchie77]

Say you exchanged on a property with 42 day settlement and it falls over xmas holidays (ie you exchange on contract today with 42 days which means settlement day is Saturday 28 December however contract states 42 days but quoted 27 December being the Friday before xmas hols). What are the options for purchaser...... If I go ahead I would like to delay until new yr thus avoiding the land tax payable (I am already over the NSW threshold and if I do not "own" it on 31 December I will therefore not be liable for this tax on 2014 but obviously going forward but at least a few $'s saved next year).

Awaiting solicitor advise but want to make a quick decision re exchanging. It is the vendor's PPOR so no land tax for them (they may have bought something else so not sure how it would affect them but the "land tax is adjustable" box on the contract is not ticked (ticked as NO).

Worst case if I delay I guess is I pay the interest charge over 3-4 days? Wouldnt be much on a $700M purchase......

Also, which Banks are giving the best rates at the moment? I am getting 4.85% with mine but looking at diversifying.

Thanks

 

[Terry_w]

Don't exchange without legal advice.

As for rates this all depends. You could get lower but it all depends on LVR and how much in total borrowings.

 

[DaveM]

Are the settlement agencies even open between xmas and early jan to do the settlement?

 

[ritchie77]

I think they will not be open so easiest to settle after - just wanted to know what the chances were of vendors solicitor refusing or adding extra charges.... Dont think this would be likely so helps my case re not paying land tax.

 

[Terry_w]

Settlement agencies would probably be open, but most solicitors close unit later January so it is not the best to time to settle.