Wednesday, 29 June 2011

Queensland stamp duty changes favour investors

Queensland stamp duty changes favour investors

 

 

 

 

 

 

 

 

 

 

http://www.yipmag.com.au/news/5571/default.aspx

29/06/2011
GO TO THIS SITE TO SEE THE DIFFERENCE
http://www.krg.com.au/qldstampdutycalculator/stamp_duty_calculator.cfm

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Changes to Queensland's stamp duty regime will favour investors over homebuyers, especially when buying new properties.
The controversial changes to Queensland's stamp duty regime from 1 August, along with the introduction of the Building Boost Grant, will favour investors over homebuyers, says Sunshine Coast property solicitor Despina Prial.

"There has already been much discussion and debate concerning the new Queensland Building Boost Grant of $10,000 that will be made available as from 1 August 2011.
If you are acquiring a new home in Queensland between 1 August 2011 and 31 January 2012
you may be eligible for this grant," said Prial.

"What has not yet been raised or discussed in detail, is the change to stamp duty rates on purchasing homes. At the same time the Government is making available the $10,000 “building boost” grant to those who are eligible for such grant, the home concession stamp duty rate is being abolished."
The effect of this would be to nearly double the stamp duty on a $500,000 purchase from $8,750 to $15,525 for a homebuyer after 1 August.

"Even if the same home buyer was eligible for the $10,000 building
boost grant, most of this would be used towards payment of the additional stamp duty under
this transaction after 1 August 2011," added Prial.

Meanwhile, the  stamp duty payable by an investor after 1 August 2011 would actually be slightly less, and the investment buyer (if eligible) will be able to use the entire $10,000 building boost for the purchase of their investment property.


Stamp Duty Queensland - Concession Requirements

INVESTMENT PROPERTY - NO CONCESSION
  • you do not meet the requirements for either the First Home or Home concessions outlined above; or
  • property purchased in the name of a company or trust is deemed by the government to be investment property; or
  • the property you are purchasing is commercial property


FIRST HOME CONCESSION 
  • you have never owned property anywhere in the world before; and
  • you intend to move into the property within 12 months of settlement; and
  • the property will be your principal place of residence for a minimum of 12 consecutive months after you move in; and
  • you will not enter into a new lease of the property prior to moving into it.
HOME CONCESSION (*For contracts entered into on or after 1 August 2011, this concession will no longer be available)
  • you have owned property before; and
  • you intend to move into the property within 12 months of settlement; and
  • the property will be your principal place of residence for a minimum of 12 consecutive months after you move in; and
  • you will not enter into a new lease of the property prior to moving into it.
FIRST HOME - VACANT LAND CONCESSION
  • you have not previously held an interest in residential land (whether in Queensland or elsewhere); and
  • you have not previously claimed this concession for other vacant land; and
  • you will build and occupy the home constructed on the land as your first principal place of residence within 2 years after the land is transferred to you; and
  • you will not dispose of the land before, or within 1 year after you start to occupy the residence constructed on the land as your home.
VACANT LAND - NO CONCESSION
  • you do not meet the requirements for the First Home Vacant Land Concession; or
  • property purchased in the name of a company or trust is deemed by the government to be investment property;


The Queensland Government has announced that the rates of stamp duty (also known transfer duty) will change for Contracts entered into on or after 1 August 2011.
Our comprehensive stamp duty calculator (accessed above) allows buyers to calculate the amount of transfer duty they will be required to pay (both before and after the changes on 1 August 2011). This may be a useful comparative tool for buyers currently in the market who wish to make an informed decision about timing their purchase. Please see Stamp Duty Concessions Explained for further information.


GO TO THIS SITE TO SEE THE DIFFERENCE
http://www.krg.com.au/qldstampdutycalculator/stamp_duty_calculator.cfm








 





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