stamp duty on house and land components

Discussion in 'Legal Issues' started by hwd007, 9th Dec, 2003.

  1. hwd007

    hwd007 Member

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    Do I save money on stamp duty by buying land first and then building a house on it, as opposed to buying a house and land package together ?


    i.e. I can buy a block of land for $230,000 then I only pay stamp duty on $230,000 where as if I buy a house and land package at $350,000 then I pay stamp duty on all of that value ?
     
  2. Aceyducey

    Aceyducey Member

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    If you buy the land & build a house you will pay GST on everything for the house.

    This is a much higher percentage than stamp duty.

    Cheers,

    Aceyducey
     
  3. hwd007

    hwd007 Member

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  4. Mondie

    Mondie Member

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    Not sure what state you are in, but in Victoria this is the case. For OTP purchases where construction hasnt commenced then you pay SD on the land only. For properties where construction is underway you pay SD for the land and bulding value at its current invoiced value.

    In NSW you dont get this concession but pay SD on the contract price whether OTP or not, but at lower rates than in Vic. Not sure about the other states as l have only dealt in Vic & NSW to date.

    Hope that helps :)
     
  5. NickM

    NickM Member

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    If you buy a new house and land package it will be treated as new residential premesis and GST will apply to the purchase price

    If you buy the land GST may apply depending on who you are buying from.
    If you build the house you will also pay GST on the construction costs. There should be some savings though.

    Definite savings for stamp duty if the land is purchased separately.