Downsizing and stamp duty in SA
The two-sided move: selling the family home, buying the next one and understanding where duty, timing and released equity fit.
Downsizing is two decisions, not one
The sale releases the equity. The purchase decides how much of it remains available. The order of those transactions changes your risk, your negotiating position and how long you may need temporary accommodation or bridging finance.
Selling first gives certainty about the amount available. Buying first gives certainty about the next home. Neither is automatically right for everyone.
Model the complete move
Illustrative released equity
Example only: the balance changes with sale price, purchase price, debt and transaction costs.
Where stamp duty fits
In South Australia, duty is payable on the property purchased. There is no broad concession merely because a person is downsizing, so duty must be included from the outset.
Eligible older Australians may also be able to make a downsizer contribution to superannuation from sale proceeds. That is a financial advice question and should be confirmed with an adviser or accountant.
A calmer sequence
Establish the sale range
Use settled local evidence and account for presentation and selling costs.
Set the next-home budget
Include duty, professional fees, moving and a sensible contingency.
Choose the order
Compare selling first, buying first and a longer settlement against your risk tolerance.
Advice for your property, not a generic market.
Contact Tony Lawson to apply the evidence to your plans.