FHOG Stamp Duty reduction in Victoria buying off the plan

Hey Brokers,
I just had a thought last night I was hoping to clarify.
Sorry if this sounds stupid but the term "new home" used on the SRO website when discussing the reduction of stamp duty for first home buyers, does this include off the plan?

Reason being I had 2 scenarios. If it does include OTP then:
How is it calculated when you buy OTP before construction has even begun? I understand stamp duty is not payable until settlement but calculated at purchase which in this case is just land, let us say worth 150k. A rough use of a calculator has this at around 2k. Would you then get the concession on that amount?

Second scenario is on the contrary to that. What happens if it does not include OTP and you purchase it close to completion. It's value would be significantly more so more stamp duty payable, but no concession.

I am sure I am complicating this big time! But like to get my thoughts out there :)
 
I am not an expert in this area, better to get professional advice from a conveyancer/solicitor, but my understanding is:
OTP is classed as a new home for first home owner stamp duty concession purposes.
You would need to apply for an OTP concession as well as the first home owner reduction. OTP concession is not simply the land value only, it normally includes additional costs/value added, however still a significant savings.
I haven't seen anywhere that you cannot get both.

If you purchase closer to or at completion, there is a calculation as to added value of not yet complete, if complete then normal calculation of stamp duty and you get the first home owner concession based on property value.
 
Hey Brokers,
I just had a thought last night I was hoping to clarify.
Sorry if this sounds stupid but the term "new home" used on the SRO website when discussing the reduction of stamp duty for first home buyers, does this include off the plan?

Reason being I had 2 scenarios. If it does include OTP then:
How is it calculated when you buy OTP before construction has even begun? I understand stamp duty is not payable until settlement but calculated at purchase which in this case is just land, let us say worth 150k. A rough use of a calculator has this at around 2k. Would you then get the concession on that amount?

Second scenario is on the contrary to that. What happens if it does not include OTP and you purchase it close to completion. It's value would be significantly more so more stamp duty payable, but no concession.

I am sure I am complicating this big time! But like to get my thoughts out there :)

http://www.sro.vic.gov.au/ca25758c0...575CB0000CC638024A4ADFB9DAED9CA2575A1004420DC

OTP is included. But check ALL the eligibility criteria. The dutiable value is the contract price which includes the land and the completed build. Capped at $750K unless is primary production land. You cant have two contracts for OTP. You can have two contracts only if you buy land then build. Then you only pay duty on land but it fails the OTP concession.
 
http://www.sro.vic.gov.au/ca25758c0...575CB0000CC638024A4ADFB9DAED9CA2575A1004420DC

OTP is included. But check ALL the eligibility criteria. The dutiable value is the contract price which includes the land and the completed build. Capped at $750K unless is primary production land. You cant have two contracts for OTP. You can have two contracts only if you buy land then build. Then you only pay duty on land but it fails the OTP concession.

Hi Paul,
Thank you so much for providing these details.
So am i correct in saying then there is less benefit for a FHO to buy off the plan in the early stages because it is calculated at the total contract price?

Considering one of the main benefits of buying OTP early is that stamps is calculated at that time (usually just land)?
 
Maybe maybe not. If its under $750K and satisfies the FHOG concession its still exempt. If the total cost exceeds $750K then a land only contract + a build contract may fly under the radar too if its two contracts. If its $750,001 and a OTP then the duty concession is zero.
 
stamp duty is calculated as the cost base when the contrac is entered into. therefore before any work is done, its land value only. if half the work its land value plus half the cost etc. FHB receive a 50% discount on stamp duty. If they are the first occupant, and meet the rest of the FHOG criteria they also receive $10,000 FHOG.

Note, both the FHOG and the stamp duty discount end when the contract price is $600,000 in Victoria. Neither is then applicable.
 
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