If you are in the process of buying a house or you are just going out to look at the first potential properties with an estate agent then you need to be made aware of a tax that will be levied upon the transaction when it is complete - stamp duty. This is a duty that is levied in part by the local government and varies depending on a variety of factors. Knowing how to avoid stamp duty may be the one thing that makes a home more affordable for you and your family and finding someone to help you is essential.
Who Can Teach You How to Avoid Stamp Duty?
There are several places where you can learn how to avoid stamp duty, but the first thing that you must know is that the laws have changed in the past few years (primarily since 2008), and that may or may not work in your favor. Initially, these law changes were designed to put more people in homes, but they initially backfired because housing prices dropped and a lot of new home buyers got caught in homes that they couldn’t afford it.
Some new loopholes and exemptions were built into the old stamp payment laws that can benefit you now and one of those is specifically designed for first time home buyers. If you are buying as an individual and have never bought a home before, then this is an easy way to buy a home without paying stamp duty. If you are part of a couple, then both people must be first time home buyers. A good stamp duty mitigation agent can help you with this.
What If You Already Have a Piece of Property?
Knowing how to avoid stamp duty when you are buying a second piece of property, whether it is a vacation home or a piece of investment property is equally important and often not so simple. Experts will tell you that one way that you can at least diminish the impact of stamp fees is to buy a piece of property in a redevelopment area. These are designated by the government as certain areas (throughout the country) where investment in property is necessary to grow the economy.
Another way that you can save money on stamp dues is by purchasing a home that is environmentally friendly. There are, of course, specifications for this depending on whether you buy a new home or an older home, but having a “green” home is one good way to eliminate paying duty. You may even get a rebate from the government!
How Can You Learn More?
If you are in the market for a home before you sign any papers or make any offers, it is important that you investigate further how to avoid stamp duty. Failing to do so could end up costing you an awful lot of money. Luckily enough, there are companies that specialize in helping potential home buyers with this red tape and should be able to make sure that you pay the least amount possible on stamp duty. An experienced stamp fee mitigation agent is the best place to start.