0:00
hey there if you're looking to buy a
0:02
home you've probably heard the term
0:03
stamp Duty thrown around but what
0:06
exactly is it and how is it calculated
0:08
don't worry I'm here to break it down
0:10
for you stamp duty is a tax you pay to
0:12
the government when you purchase
0:14
property and it's something you
0:15
definitely need to factor into your
0:17
budget this tax varies depending on
0:19
where you live the value of the property
0:22
and whether you're a firsttime buyer or
0:23
not so how is it calculated well it's
0:27
not a flat rate the amount of stamp Duty
0:29
you'll pay increases with the price of
0:31
the property generally the higher the
0:34
property value the higher the percentage
0:36
you'll be taxed for example let's say
0:38
you're buying a house for
0:40
$400,000 in many places the first
0:44
$125,000 of the property's value might
0:46
be exempt from stamp duty but for the
0:53
$250,000 you might pay a rate of 2% and
0:56
the portion between $250,000 and $14
1:00
$400,000 could be taxed at 5% so
1:04
breaking it down on the first
1:17
$2,500 on the remaining
1:25
$7,500 add those together and your total
1:28
stamp Duty would be $10
1:30
,000 now it's important to check the
1:32
specific rates where you live as they
1:34
can vary some places offer discounts or
1:37
exemptions for firsttime buyers or for
1:39
properties below a certain value always
1:42
do your homework or consult with a
1:44
professional to get the exact figures
1:46
but why is stamp Duty important well
1:49
it's a significant chunk of change and
1:51
it's due pretty soon after you complete
1:53
the purchase not accounting for it can
1:55
throw a wrench in your financial plans
1:57
you need to make sure you have enough
1:59
saved up not just for the down payment
2:01
but also for the stamp Duty and other
2:03
closing costs finally remember that
2:06
stamp duty is just one of many costs
2:08
involved in buying a home there's also
2:11
mortgage Arrangement fees legal fees and
2:13
potential moving costs it's crucial to
2:16
have a comprehensive budget and to
2:18
understand all these expenses before you
2:20
dive into the home buying process I hope
2:23
this clears up what stamp duty is and
2:25
how it's calculated if you found this
2:28
helpful don't forget to like And
2:30
subscribe for more tips on home buying
2:31
and personal finance thanks for watching
