One thing I noticed when calculating costs associated with
land settlement was there was a discrepancy between the land transfer duty
calculated by the mortgage broker and that calculated by the conveyancer. Indeed
the difference amounted to several thousand dollars. In an attempt to work out
who was right I went online and used several of the stamp duty calculators
available. The result in each case agreed with the lower figure provided by the
mortgage broker.
I eventually worked out that the difference was related to
the Principle Place of Residence Concession. What the online calculators don’t
tell you is that if you purchase vacant land you cannot claim this concession until an occupancy
certificate is issued for the house that is constructed on your land. In the
interim you are effectively providing an interest free loan for thousands of
dollars to the state government.
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