Home Owners > Buying and Selling

The cost of Stamp Duty

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Banjo:
Does the cost of Stamp duty put you off moving?

The main website has some good information.
Check out how much Stamp Duty you will have to pay using the Stamp Duty calculator at Stamp Duty Calculator

With all the other costs, estate agents fees, conveyancing fees etc this really is the last straw.
Check out the full cost of moving:   The cost of moving

I think the threshold will stay at the current levels for years and as property prices increase over time, nearly all transactions will incur the highest rates of stamp duty.

The Prophet:
Anyone buying a house just above or near the stamp duty tax thresholds must be mad.

For example a £505,000 house will incur Stamp duty of £20,200. A £495,000 will have £14,850 Stamp Duty Tax - £5,350 less tax for a reduction in price of just £10,000.

FirstTimeBuyerGuru:
Of course the idea is to buy a property at the first time buyer stamp duty relief threshold of £250,000, and then add value to it until you can get past the dead zone of up until around £270,000-£280,000.

Philofacts:
It can take a long time for the price to rise from £250,000 to say £295,000 the next  price barrier.
Unless you buy somewhere that needs a lot of renovation it could take ages in this market!

A first time buyer would need to pay LESS than £250,000 to qualify for a zero rate which is only valid until 25th March 2012.
No doubt there will be a spike in First Time Buyer activity just before then!

FirstTimeBuyerGuru:
I absolutely agree Philofacts, it would have to be in need of some fairly good rennovation. It's such a shame that this silly system exists. In your opinion, what are the best things to look out for home that would lend itself to getting such a large increase in value out of it? Should one look for loft space, enough room for a conservatory?

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