Stamp duty, also known as transfer duty, is a tax that applies to all property and land purchases or transfers. However, when you build a home, you do not pay stamp duty on the house, as there’s no transfer taking place. You only pay stamp duty on the block of land you purchase.
In Western Australia, first home buyers do not pay stamp duty on land purchased up to the value of up to $450,000. For land purchased between $450,000 and $550,000, there are concessions available, which reduce the amount of stamp duty payable.
This is something to consider when deciding between building your first home or buying an established one – it could result in significant savings.
