When you are going to buy a house, you should be prepared to pay stamp duty. This is a one-time fee that is usually levied on any property transaction. The fee is usually determined by the local authorities and therefore varies from place to place. Moreover, the value of the house you are buying will affect the price. Houses that are expensive usually cost higher stamp duty fees.

 

Stamp duty can significantly increase the cost of the house you are buying. However, there are a number of ways that you can legally use to reduce the amount of duty you will pay. These ways may not be obvious to the average person but a stamp duty mitigation expert can help you uncover them. Below are two tips that can help you eliminate or reduce the amount of stamp duty calculator you may have to pay for a piece of property.

 

i)             Register the house as a first-time buyer

 

If you are buying a house for the first time, you will not be charged duty as high as someone buying a second or subsequent home. Moreover, you can totally avoid paying stamp duty if you designate the property to be residential rather than commercial.

 

While the law states that first-time buyers of residential houses are exempted from paying stamp duty, the definition of "first-time buyer" is no explicit. If you have already bought a house in the past, you can buy a subsequent one in the name of someone who's not bought before. For instance, you can designate your spouse or even children as buyers or subsequent properties to avoid paying stamp duty.

 

ii)            Buy houses below stamp duty threshold

 

Another way of avoid stamp duty is to buy a house whose price is below the threshold set for charging duty. The amount of stamp duty you will pay will depend on the value and location of the house you want to buy.  Various locations have different thresholds of stamp duty. Therefore, before buying a house, find out the minimum threshold required for a buyer to pay stamp duty. If you can negotiate the price of the house to be lower than the stamp duty threshold, you will end up saving a lot. Read more stamp duty information online.

 

However, there are certain rules that must be followed if you are to avoid paying stamp duty.  It's advisable to hire a stamp duty mitigation company to help you reduce the cost of buying a new house.