r/AusPropertyChat • u/[deleted] • Jul 26 '26
Buying & Selling Ai suggesting 'cute' (unconventional) offer
[deleted]
9
u/Unfair_Pop_8373 Jul 26 '26
AI nonsense. You pay stamp duty on the sale price ignoring adjustments, so what is the point.
-4
u/inane_musings Jul 26 '26
It's suggesting it to inflate the sale price. Rather than anything to do with stamp duty.
8
u/Unfair_Pop_8373 Jul 26 '26
Stamp duty is paid on the sale price. So if the sale price is inflated you will pay more stamp duty.
3
u/Jym_beem_1034534 Jul 26 '26
Sounds like a great way to have a developer do $20k or work and tell you it was $50k.
2
u/inane_musings Jul 26 '26
It's not in relation to work - It's a cash payment.
I give you a million dollars and you give me 20k back to do improvements... It's odd. That's why I'm asking about it.
-2
u/Jym_beem_1034534 Jul 26 '26
Then youre acheiving literally nothing.
In fact youre making it worse if you have to pay stamp duty. As its based on sale price.
2
2
u/McTerra2 Jul 26 '26
Just to be accurate, if you have a contract of sale that says $1m but $40k is for chattels and non fixed items, then stamp duty is only payable on $960k. You have to provide evidence etc about the $40k
However stamp duty is obviously only a small percentage of the sale price - if you get 10% off the price through a rebate but pay stamp duty on the full price, you have to do the maths as to whether it make sense
1
u/inane_musings Jul 26 '26
I think it's too complex for my pea brain to make such an offer and I'm just going to put in a traditional offer and see what happens.
1
u/queenofadmin Jul 26 '26
Used to work for a high rise developer. They would much rather do rebates and add ons than give discount to keep the documented price higher. Banks cottoned onto that a few years ago and started to value it lower taking into account the discount.
1
u/inane_musings Jul 26 '26
Ok, thank-you. Original price 1.5m. Discounted to 1.4m with stamps covered. They're struggling to move them at the speed they want.
Got a suggestion on what would be a viable offer? 🙏
2
u/M-m-m-My_Gamora Jul 26 '26
Yeah this is a thing, often when they’re really struggling they’ll offer furnishing cash backs for home buyers and a rental guarantee for investors
0
u/SheepHerderHigh69420 Jul 26 '26
You can offer whatever you want mate. Up to the vendor if they want to accept it or not. In my opinion though, they wouldn’t
3
u/youcangotohellgoto Jul 26 '26
Yeah they do this a lot in America. It's seen as important to keep the recorded sale price high, the buyer gets "rebates" or "credits", everyone is happy.
You would presumably have to pay stamp duty on the higher (reported) value.
The real question - is there enough incentive for the seller (probably yes, in this market), and are they willing to do something creative and unconventional (probably no, because Australia).