Advice Needed - Stamp Duty

Advice needed..

I have purchased an investment property that has had long term tenants living there for over 10 years, they are now on a month by month agreement without contract.. I have the option to claim the 40% stamp duty saving for first home buyers but must move into the property within the first 12 months.

I was planning to move into this house around the 10th month post settlement & renovate/live in the property for 12 months then rent it out again. Although after speaking with the tenant I am unsure which road to take as they insist they would love to stay!

stamp duty paid was $26,570. I am entitled to 40% of this back if I move into the property.

Reimbursement (as per my calculations from SRO website) = $12,488

Rent is currently at $330 per week which is well below average for the area but will be greatly improved with a quick +/-$20k Reno.

If in my position which of the following would you chose;

Keep the tenants in there paying $330ish until I'm ready to move out of home and make it my PPOR. Pay full stamp duty rate.

OR

Move into the property in 10th month, claim stamp duty reimbursement & renovate as PPOR for 12 months then rent out again for roughly $440ish + pay agents re-letting fees etc.

Hypothetically though if I "moved into the property" and changed all details across as if it were my PPOR then rented a few rooms to the current tenants as a "share house" scenario, would I be potentially making a big mistake?

Interested to hear people's perspectives on my situation and would love some helpful advice from anyone interested! Description may be slightly vague but didn't want to put anyone to sleep.. Thanks in advance.
 
Hi Dan

Whatever you do make sure you don't fall foul of the paperwork. Here are the details of a recent case where an owner-occupier purchased a house and had her stamp duty reassessed up because she let the existing tenant stay on for a few weeks extra after settlement. They forced her to pay stamp duty at the investor rate. Seems like whatever you do don't grant them a new lease.

You have to be so bloody careful these days.

http://www.cartercapner.com.au/blog...s-incoming-owner-9k-stamp-duty-re-assessment/
 
Back
Top