selling our apartment (both 1st prop) to buy a house ... 1) stamp duty 2) trs 3) cgt

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buttonmoon

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Sorry in advance - I know the answers to these 3 questions will be available on these boards but I've heard different things from diferent people and when searching on here I'm going off on tangents ... getting confused ... I would really appreciate if someone could verify what I (think) I've learned.

Firstly, some background info: myself and girlfriend bought our apartment 2 years ago for 290k (mortgage 265k). girfriend really wants to move into a house now.

The apt seems to be worth around 380k at the mo and we have 25k savings and no other loans. So, if we sell the apt and buy a house (which'll be about 500k) it will mean that for:

1) stamp duty - we pay "normal" stamp duty regardless of whether the house is a new build or 2nd hand (i.e. about 35k on a 500k estate house)?

2) TRS - we keep getting this for 7 years regardless of how many times we move (as read in peetes post, thanks clubman)

3) CGT - we'd be selling the apt straightaway so we could afford to move to a new place so we won't have to pay this (again, thanks clubman)

So, in short, we have to give Bertie about 35k (all our savings plus 10k from profit on apartment) and then get a big whopper mortgage. Is that right?

--I hope I've missed something because if not we can't move :(
 
buttonmoon said:
1) stamp duty - we pay "normal" stamp duty regardless of whether the house is a new build or 2nd hand (i.e. about 35k on a 500k estate house)?
Click to expand...

There is no stamp duty on new houses with a floor area of less then 125 square metres, regardless of whether or not you are FTBs.

2) TRS - we keep getting this for 7 years regardless of how many times we move (as read in peetes post, thanks clubman)
Click to expand...

Correct.

3) CGT - we'd be selling the apt straightaway so we could afford to move to a new place so we won't have to pay this (again, thanks clubman)
Click to expand...

Correct.
 
Yeah but don't think it's really an option though.

We couldn't afford, or probably wouldn't even get, a 475k mortgage (me 50k, her 40k). And if she had a baby and wasn't get paid her full or, god forbid, any wages (or even if interest rates went up much) things would be vvvvvery tight.

In fact, even with selling the apartment things would be vvvvery tight.
 
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As you've only owned the apartment for a couple of years, you'd be charged stamp duty at investors' rate, should you decide to hold on to it!
 
Re: selling our apartment (both 1st prop) to buy a house ... 1) stamp duty 2) trs 3)

liteweight said:
As you've only owned the apartment for a couple of years, you'd be charged stamp duty at investors' rate, should you decide to hold on to it!
Click to expand...
Just to be clear - this is the case only if you rent it out within 5 years of purchase.
 
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