There are many benefits to building your dream home compared to buying someone else’s. You have greater control over nearly every aspect of designing and creating a new home (including more flexibility around where it’s located). But another surprising benefit of building rather than buying relates to potential savings on stamp duty.
What is stamp duty?
When you buy or acquire a property, you will usually have to pay land transfer duty (commonly called stamp duty). It’s a tax that you pay to have a property transferred into your name. The amount of duty you pay depends on the value of your property and whether you are eligible for any exemptions or concessions.
Save on stamp duty by building
Few people purchasing an existing home are prepared for the shock when they discover how much they have to pay (on top of the purchase price) in stamp duty.
But when you build a home, you don’t pay stamp duty on the house, as no transfer is taking place – you only pay stamp duty on the block of land you buy. This can save you thousands of dollars compared to the stamp duty applicable on an existing house plus land. It could be the difference between affording a major upgrade on your dream home, to make it even more dreamy.
So if you’re looking for yet another reason to build rather than buy… you’re welcome.
Want to learn more?
For more information about stamp duty, visit the State Revenue Office (Vic) website at sro.vic.gov.au