How To Avoid Transfer Duty

How To Avoid Transfer Duty

Welcome to our article on How To Avoid Transfer Duty, where we will be discussing several tips and tricks that could potentially save you a considerable amount of money in property transactions.

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Table
  1. What is Transfer Duty?
  2. How to Avoid Transfer Duty
    1. 1. Consider First Home Owner Grants
    2. 2. Consider Property Ownership Structures
    3. 3. Buy a Property that is Exempt from Transfer Duty
    4. 4. Buy Property Off-the-Plan
    5. 5. Negotiate with the Seller
  3. Conclusion

What is Transfer Duty?

Transfer Duty, also known as stamp duty, is a tax that is levied by the state government on the transfer of property from one owner to another. The duty amount varies depending on the state or territory in which the property is located, its value, and the type of property purchased.

How to Avoid Transfer Duty

1. Consider First Home Owner Grants

If you are a first time home buyer, you may be eligible for a First Home Owner Grant. This grant is designed to help first homebuyers get into the property market by providing them with financial support. Some states offer a grant that can help offset transfer duty costs.

2. Consider Property Ownership Structures

Property ownership structures, such as trusts or companies, can help to avoid transfer duty. This can be done by purchasing property through a company or trust, rather than as an individual. You should consult an accountant or financial advisor to determine the best ownership structure for you.

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3. Buy a Property that is Exempt from Transfer Duty

Some properties are exempt from transfer duty. For example, some states offer exemptions for properties that are used for primary production purposes. You can check with your state revenue office to find out if your property is exempt.

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4. Buy Property Off-the-Plan

Buying property off-the-plan can also help you avoid transfer duty. In some states, buyers who purchase off-the-plan are only required to pay transfer duty on the land value, rather than the total value of the property. This can result in significant savings.

5. Negotiate with the Seller

Finally, you can negotiate with the seller to see if they are willing to help with transfer duty costs. This is more likely to be successful in a buyer's market, where there is more supply than demand.

Conclusion

When it comes to avoiding transfer duty, there are several strategies that you can use to save money. Some of these strategies include considering first home owner grants, using property ownership structures, buying a property that is exempt from transfer duty, buying property off-the-plan, and negotiating with the seller. Remember, it's important to always do your research and seek professional advice before making any major financial decisions.

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