Tax Obligations for Investment Property in Carnegie

If you're considering investing in Carnegie real estate, it pays to be aware of the state tax obligations that may apply to your purchase.

Keep these taxes in mind to help you choose the right investment property to suit your needs and budget.

Land transfer duty

Also known as stamp duty, this is a one-off tax charged when you purchase property in Australia.

Unless your property incurs an exemption, a property buyer will be charged a figure based on either the market value of the property or the price paid.

First home buyers who are eligible for the Victorian First Home Owner's Grant can apply for a reduction to the Land Transfer Duty on homes valued at $600,000 or less.

Land tax

This is a tax you incur annually, depending on how you use your property. An investment property, vacant land, holiday homes or land used for business purposes will incur liability.

Your principal place of residence should be exempt from land tax.

Fire Services Property Levy

This is an annual levy charged on all Victorian properties to help fund fire services in the state.

The levy consists of a base fixed charge and variable amount depending on your property type and is collected by the council each year as part of the rates assessment on your home.

For more information on investing in property in Carnegie, speak with real estate professional Matthew Hurlston at Ray White Carnegie.