I don't live in NSW & am looking to buy an investment property in Sydney. Will I have to pay land tax?
Without knowing your precise circumstances and assuming this property will NOT be your principal place of residence. If the property's assessed value exceeds the land tax threshold (which is currently $549,000) you will pay land tax on the amount over and above the threshold.
If you are buying a strata unit there is a good chance it will not exceed the threshold. However, before purchasing your legal adviser should be able to carry out a search at relatively low cost to work out whether there will be a liability for land tax or not.
All the best
if you go to the office of state revenue land tax site it will tell you the amounts as follows:
Land tax 2016
Tax Year Threshold Rate
2016 $482,000= $100 plus 1.6% up to the premium threshold.
$2,947,000= $39,540 for the first $2,947,000 then 2% over this
If you chat to a broker or your bank, they will.be able to do the land tax calculation for you if it is warranted .
i am on the Gold Coast if you would like to meet up.for a chat.
kind regards Paul
You will only have to pay land tax if the property you purchase has land value above the current threshold, which is $482,000.
A typical 2 bed unit in the better parts of Sydney will cost around $800k, to $1m, so the land value is unlikely to reach that threshold.
You should check on each property before you commit to any purchase, all potential outgoings.
A good Buyers Agent should be able to assist with calculating all of this