FHOG and First Home Plus

[Rolf Latham]

From: Rolf Latham


Hi all

In NSW FHOG recipients are entitled to a stmapd duty exemption or reduction based on a sliding scale of the value of the property purchased.

I have a young couple in an interesting situation.

They have purchased a vacant block of land in the Sydney Metro area. They will build on it ASAP to get the 10 k FHOG.

1. If they complete the transaction for the land, they will be liable for 10 k in stamp duty.

2. If they bought the land and house package from a developer they would be close to exempt or at least partly exempt.

Is there a way that any of you structure gurus can see how these young folk can get around paying the stamp duty for the empty block of land, like I said if it were a house and land package then a discount or total rebate would apply.

Ta

Rolf

 

[WebBoard]

Reply: 1
From: Bob Quiggin


Rolf,

Some possible thoughts which assume they are hiring a builder to construct their home:

1. Make the building contract contingent on the land contract - argue that the whole is a single package and the exemption applies.

2. Can the builder get the land free of stamp duty if it's for a first homeowner property - presumably not, as that would open up a great scope for rorting the system. If he could, then flipping the land to him to have it sold back as a package might work.

Nice problem - hope someone else comes up with a bright idea, simply as an exercise.

 

[Rolf Latham]

Reply: 1.1
From: Rolf Latham


Thanks for the ideas Bob

this one seems to have stumped almost everyone !

Ta

Rolf