Stamp Duty Valuations
Stamp Duty Valuation
Stamp Duty refers to the duty or tax that is payable on a percentage of the market value of a property when ownership details are exchanged. This exchange can be between related parties through a transfer of ownership or through the sale of a property between third parties. It is also payable on the transfer of a property from entity to entity such as to a superannuation fund. The following rates are advised for the calculation of Stamp Duty in NSW:
The International Standards of Valuation define Fair Market Value as “the price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts”
When a property changes hands outside of the open market, stamp duty needs to be calculated based on the calculated Fair Market Value. This calculation needs to be completed by a certified and experienced property valuer. The valuer will look at attributes of the property such as type, size, build type, location, and its surrounding amenities. These attributes are then used to rank the property against similar sales of properties with such attributes that have recently sold to indicate market value.