To state the obvious, the largest cost is the purchase price of the real estate or home. For the purposes of this example we shall assume that the purchase price is: $400,000.
Stamp duty is essentially a tax on the transfer of property. In South Australia, stamp duty is generally charged on transfers of residential and primary production land. It is the responsibility of the buyer to pay stamp duty, it’s calculated according to a sliding scale based on the value of the property.
Example: Purchase price of $400,000 = $11,830 of stamp duty.
Land tax is a complex calculation for some. Please only use this information as a guide, for a precise calculation we suggest seeking a professional for advice, speaking to your conveyancer or visit website: revenuesa.sa.gov.au
Alternatively, if you need to know the total value of all the taxable land. Land tax is calculated on the site value, which you can locate on your last Land Tax Notice of Assessment or by contacting the Office of the Valuer General on 1300 653 346.
As of: 30 June 2021 the land tax exemption threshold increased to $482,000.
Example: Valuer General assessed at $482,000 = $0 zero land tax.
Does not exceed $482,000.
Amount of Tax $Nil.
Exceeds $482,000 but not $774,000.
Amount of Tax $0.50 for every $100 or part of $100 above $774,000.
Exceeds $774,000 but not $1,1226,000.
Amount of Tax $1,460 plus $1.25 for every $100 or part of $100 above $1,126,000.
Exceeds $1,126,000 but not $1,1350,000.
Amount of Tax $5,860 plus $2.00 for every $100 or part of $100 above $1,126,000.
Amount of Tax $10,340 plus $2.40 for every $100 or part of $100 above $1,350,000.
Nobody likes to pay taxes, and we hear the grumbles all the time. However, we are very lucky to live in a beautiful and safe area with excellent and constantly improving services. This all costs money, somebody, somewhere, somehow has to pay towards keeping what we have. We are lucky.
When purchasing real estate, rule of thumb is to allow 5% to 7% of your budget to cover associated costs such as fees, duties and charges.
The main government fees associated with buying a home are:
Purchase stamp duty: This is the largest expense. It’s a tax levied by your state government on all property purchases and has been explained above.
Mortgage stamp duty: This is a tax levied by the state government based on the size of your mortgage. It has now been abolished in most states.
Transfer fee: This is a government fee for registering your name on the title of the property and removing the vendor’s name.
Registration fees: This is a government fee for registering your lender’s mortgage on the title of your property, if required. If the vendor has a mortgage on the property then you may be charged to remove their mortgage, the cost of which will be reimbursed by the vendor at settlement.
Once you have found your real estate or home, secured your purchase with a fully signed contract. You will now require a conveyancer to finalise the transaction and guide you through the transfer of ownership. Cost will vary, nevertheless allow a budget of approximately $800 to $1,500.
You may decided to undertake a building inspection or pest inspection. These can cost up to $600.
Some lenders charge application fees, settlement fees or valuation fees, this varies from $0 to $900.
P.J.D. REAL ESTATE can take no responsibility for any incorrect information, these tables are meant as a guide only.
Please seek independent advice before making any final decisions.