Stamp Duty- Investor or Live In?

T

THEHEATH

Hi Guys,

I notice that the stamp duty for and "investment" property is thousands of dollars above that of a "live in" property (I'm looking in qld). My question is what sort of check is performed on this. ie. What's to stop me as an investor saying that it is live in and paying a lower stamp duty. I mean I may originally intend to live in it, but then change my mind after purchase/settlement and decide to make it an investment property? Any thoughts or info would be appreciated.
 
Data matching is shared between govt agencies. eg you claim a tax deduction on it for investment purposes, or you lodge a rental bond.
 
Well I tend to think ripping a few extra thousand dollars from someones pocket just because they are an investor as theft myself!
 
THEHEATH said:
Well I tend to think ripping a few extra thousand dollars from someones pocket just because they are an investor as theft myself!
Click to expand...

Agreed, but especially in QLD, it happens a lot. Stamp duty, council & water rates. Once price for the owner occupier, another for the investor.

It is what it is though. Don't try to avoid it, the probability of getting caught is very high and the cost is not even remotely worth the potential payoff.
 
THEHEATH said:
Hi Guys,
I mean I may originally intend to live in it, but then change my mind after purchase/settlement and decide to make it an investment property? Any thoughts or info would be appreciated.
Click to expand...

This can happen.

However, if you don't actually move in within a certain time (I think 12 months) then you must advise the appropriate department and pay the extra stamp duty.

Data matching between government computers will probably catch you out if you try anything dishonest.
Marg.
 
THEHEATH said:
I mean I may originally intend to live in it, but then change my mind after purchase/settlement and decide to make it an investment property? Any thoughts or info would be appreciated.
Click to expand...

You're based in Victoria, buying a PPOR in QLD. The first challenge will be convincing the bank you can make the commute to work.
 
Can I hijack this?

What if you buy a house, with full intent on it being an investment property, and pay investment stamp duty.

Before settlement, you decide you actually quite like this house and wish to move in.

Do I have any recourse? Can I still claim it based on 'intent'?

In this case, I have paid a $7000 premium for a change of heart.

My wife's fault, don't ask.
 
Check with OSR, but in my opinion yes. I asked them a similar query regarding moving in after having it as an ip, and the answer was yes. Provided the strict rules are complied with.

It's always best to pay the duty then claim a refund later under different circumstances. It would pay to have a recording of the phone conversation with OSR.. or email.
 
Bran said:
Can I hijack this?

What if you buy a house, with full intent on it being an investment property, and pay investment stamp duty.

Before settlement, you decide you actually quite like this house and wish to move in.

Do I have any recourse? Can I still claim it based on 'intent'?

In this case, I have paid a $7000 premium for a change of heart.

My wife's fault, don't ask.
Click to expand...

Call OSR Qld and discuss this. They ping people in the inverse so I would consider they may allow a claim for the concessions afterwards.

These things are called a reassessment. Use Form D2.2 within 5 years !!

https://www.osr.qld.gov.au/duties/transfer-duty/reassessments.shtml
 
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