Stamp Duty

Recently, the REIV has made a call for the reduction – if not outright elimination – of stamp duty charges. Whenever you buy property in Victorian, you pay stamp duty on it.

Fair? Maybe.

A slug to your pocket? Definitely.

And stamp duty isn’t going down – it’s increasing. Ten years ago, you paid just short of $10,000 in duties for a median-priced house. Now, you’ll pay almost $30,000. That’s an increase from 4.15% to 5.13%.

While house prices have increased, if you were charged 4.15% instead of 5.13% on a median priced property, you would save $5,000.

This increase doesn’t just affect established buyers – it can make it even harder for first home buyers to enter the market. In fact, we’re seeing just that. First home buyers have dropped by 45% over the last year alone. While the first home buyer’s grant is still active, house prices have doubled since its introduction.

There is some good news though, as older Victorians can be exempt from stamp duty. Look here for more information.

So before you buy, don’t forget to check out the ‘hidden costs’ associated with your purchase. Sometimes, it will make a big difference between the price you want to spend, and the one you can actually afford.

For more information on stamp duty costs, check out the State Revenue Office of Victoria's site.