What tax do you pay when purchasing a house?
Have you ever wondered how much it costs to buy a home in Australia? When it comes to purchasing real estate in Australia, you may be wondering what the expenses are and how they will influence your bottom line. You might need some pre-purchase property advice. And for pre purchase property advice Geelong offers a lot of good options.
To know how much you have to pay for taxes, it would be wise to first understand what total expense you need to incur. Well, there’s nothing to worry about. All you need is to keep your eyes open and senses active for weeks before finalising your property purchase deal.
Vacant Land Contract Geelong: Costs you should expect
In general, for vacant land contract Geelong, you should anticipate to pay around 5% of the purchase price for different expenditures. A preliminary estimate of the purchasing costs for your preparations when buying/investing in a property in Australia is provided below.
For pre purchase property advice, Geelong, continue reading.
Fees for legal representation: Depending on the type of property, it might range from AUD 800 to 2,500.
Loan establishment fees: Depending on the institution, loan establishment fees range from AUD 0 to 1,000. The setup cost charged by private funders is usually larger.
Stamp duty: Both domestic and international buyers are eligible. Depending on the state, it ranges from 3.5 percent to 5.5 percent.
Additional foreign stamp duty: 7% or 8% of the purchase amount is levied. Due to differences in stamp duty costs between Australian states, you should consult the foreign citizen stamp duty for accurate figures in each state.
FIRB approval Fee: Fees for FIRB approval start at AUD 6,350 and go up from there. Fees may vary depending on the valuation of the property and whether you are a temporary resident or a foreign investor without an Australian visa. Every year, this charge is subject to change.
Property inspection fees: Depending on the type of property, property inspection fees range from AUD 450 to 800.
Land Tax: A yearly levy that landowners must pay. Except for the Northern Territory, land tax is handled by your state or territory government and is applicable everywhere. The tax will differ based on the state you buy your land in and whether or not there is a tier.
Land tax surcharge: If you own residential land in Australia and are a foreigner, you must pay a land tax surcharge in addition to any land tax you may have already paid. This varies by state and might be anything from 0.75 percent to 2% of the land price.
Property inspection fees: Fees charged by buyers’ agents vary depending on the services given.
Minor expenses: Building insurance, council charges, water rates, modifications, and other small costs
Property Transfer Experts Geelong
Seek consultation from your property solicitor and property transfer experts Geelong for a more detailed breakdown of all the costs and the tax you pay.
BONUS KNOWLEDGE: Tax on Capital Gains (CGT)
When you sell a capital asset like real estate or stocks, you usually make a profit or a loss. This is the difference between the price you paid for an asset and the price you get when you sell it. Capital gains and losses must be reported on your income tax return, and capital gains must be taxed. Although capital gains tax (CGT) is regarded as a distinct tax, it is essentially a component of your income tax.
For pre purchase property advice, Geelong, reach out to Cahill Rowe.
