PPOR Exemption

[Xap]

We have signed a contract for a PPoR and it has just settled. We are also paying rent and have 6 months remaining on our lease. We can not find someone to take over the lease and may have to rent out our proposed PPoR for 6 months for cashflow reasons.

What happens in terms of all the stamp duty exemptions if we do this considering we fully intend to live in our new property in 6 month. Anyone know?

 

[wylie]

You cannot arrange to lease our your property if you have been given a stamp duty exemption. If the lease was in place when you settled, you can let it finish (must move in within twelve months of settlement) but cannot let that lease roll into a month to month situation and most certainly cannot arrange a lease after you have settled.

This is my recall of the very strict rules and how they applied to a family member who purchased a first home with two weeks left on the lease. When I called OSR to ask "what happens if the tenants refuse to move out at the end of the lease?" their answer was categorically that no extension of the lease would be allowed for any reason.

How hard is it to find someone to take over your lease? It sounds like you have failed to find your own replacement, but has the agency tried to find someone?

 

[Terry_w]

Don't forget the CGT.

 

[Xap]

Yes it has been advertised by the agent for three weeks.

 

[Xap]

DO you have know the link to the actual QLD legislation?

 

[wylie]

DO you have know the link to the actual QLD legislation?

No. But a quick google brings this up. You can take it from here, call them and ask about your situation, but unless things have changed, you cannot buy it with the exemption and then rent it out.

http://www.osr.qld.gov.au/duties/tr...s-and-concessions/first-home-concession.shtml