There was great attention paid to this year’s budget presentation by Dr Nigel Clarke, Minister of Finance and the Public Service. Among the measures he announced that the Government would be implementing to spur the economy were reductions in various taxes including transfer tax and stamp duty. This is big news for buyers and sellers of property. Here are some things you need to know:

As of April 1, 2019:

• Stamp duty, which was previously assessed as a percentage of the property value – at a rate of 2% for the buyer and 2% for the seller (a total of 4% per transaction) has been reduced to a flat $5,000 fee.
• Transfer tax, which is paid by the seller, has been decreased from 5% to 2% of the value of the property.

 How much will you save?

If you were purchasing a property valued at $10 million before April 1, 2019 you would have had to pay $200,000 in stamp duty. If you were selling a property of the same value, you would have had to pay $200,000 in stamp duty plus $500,000 in transfer tax. Now, if you’re buying a $10 million property your stamp duty payment would be $5,000. The seller would pay $5,000 stamp duty and a reduced transfer tax of $200,000.

Don’t forget however, that stamp duty and transfer tax are not the only fees to be considered in the purchase of property. Other fees include:

• Real Estate Agent Fees (3-5% + GCT each)
• Attorney’s Fees (1.5% – 3% + GCT each)
• Preparation of Sales Agreement (approximately 0.2%)
• Registration Fee (0.25% each)

Have a property in mind and want guidance from Victoria Mutual Group’s experts? You can reach us at the info below. We’d love to hear from you!