What differences can I expect to pay in stamp duty between an existing home and a new house and land?

STAMP DUTY COMPARISONS ON TRANSFER OF LAND/PROPERTY

Existing Property v Vacant Land

Example house/land comparable stamp duty if purchased separately.

The above scale is based on the following formula for Stamp Duty on Transfer:

1. Exceeding $20,000 but not exceeding $100,000 =3D $280 + 2.4% of the amount exceeding $20,000.
2. Exceeding $100,000 but not exceeding $760,000 - $2,200 + 6.0% of amount exceeding $100,000.

Mortgage stamp duty has now been abolished – the above (stamp duty on transfer) costs are the major costs associated with your purchase.

An established home is at a distinct disadvantage (stamp duty wise) due to the ‘cost’ of the land and completed buildings obviously commanding a higher price (and duty).

I’m a first home buyer. What can I expect to receive from the government?

First Home Owners Grant

Currently, as part of the Governments economic boost, packaging first time home owners will receive %14,000.00 towards their first home.

If this home is a new home, then the incentive is $21,000.00

For those wanting a new home in Victoria, the state Government adds another $3000 for existing homes, and $5000 for hew homes or even $8000 in rural Victoria

Summary of grants for qualifying first time home owners in

VICTORIA

Second Hand: $17000.00

New Metro: $26,000.00

New Rural: $29,000.00

Current offer runs until: 30/06/09

When viewing at sights, what should I look for?

Site Selection

The first step in buying the block of land is to ensure it has the services you consider necessary for a fulfilling life style. You should consider the availability of schools, employment, shopping centers, medical services, parks, child care centers, restaurants, and so on.

Services

When buying land you should consider the cost of connecting and maintaining services, including:

• Water –Town supply or other
• Electricity – How far to connection point
• Sewage – Town waste water system or septic tanks
• Gas – Town supply or bottle
• Telephone – How far to connection point

Hidden Costs

You should look at your future home site carefully, for issues that might become hidden costs. For example, steep sites tend to increase building costs, is there any rock? Can the trees stay, or do you need a permit to remove them? How stable is the soil (has the site got fill on it?)

Covenants

When purchasing the land, inquire about any building covenants that are attached to the land or subdivision, like minimum floor area sizes, selection of materials that you are allowed to build the home with, maximum roof heights and so on.

You should consider North orientation on the site to get the maximum energy efficiency. It is best to have the main living areas facing North to maximize exposure to the winter sun. Wide eaves on the North, South/East and South/West will protect from hot summer sun. Any deciduous trees will provide cool shade in summer and allow winter sun to penetrate the home. This will keep heating and cooling costs down.

Boundaries and Easements

You should have the boundaries of the land measured by a registered surveyor and check with the local council about the building boundary set backs. Also check the property to see if there are any easements for services on the land that will limit the positioning of the new dwelling.

Builders tip of the day

When looking to purchase a site, it's a good idea to get a representative from the building company to give an opinion on the site

I’ve heard of both Raft concrete and Waffle Pod concrete floors.

Which one is best?

The simplest and most common slab construction is the Raft Slab. Consisting of a 100mm (or thicker) steel reinforced concrete slab integrated with steel reinforced concrete beams founded into the bearing soil for strength and support, the Raft Slab provides great flexibility and strength on most soil classes and site conditions.

Often used on sites with very reactive soil classes or shallow rock, the Waffle Pod Slab is constructed above ground on a level surface.  Placed in a grid formation of typically 1m x 1m, polystyrene pods are separated by 110mm wide internal steel reinforced concrete stiffening beams to support an 85mm steel reinforced concrete slab, the Waffle Pod Slab also has improved insulation qualities.

In comparison, both Slabs are engineer designed and therefore structurally sound.  Both provide clean, level finishes to accommodate the installation of brick veneer or clad framing as well as a suitable base for most floor coverings. Both will likely develop thin cracks over their life. So which is better?  It is really about determining the most cost effective solution to deal with site conditions, slope, soil classification and complexity of house design.  The right choice will take into account not only the slab cost, but the incidental costs associated with excavation of the site as well as the slab and the need for retaining walls and soil fill to level the site before and after slab construction.  All of which is critical in preparing for the slab to be constructed but also for the home owner to enjoy the use of their block of land after the home has been completed.