Stamp Duty Savings?

Hi all,

I have just purchased my 2nd investment property in Scoresby, Vic which will in the not too distant future become my PPOR. I have obtained finance through my trusted broker who myself and other family members have delt with for many years who has managed to sort out finance exceptionally (although didn't manage to get the 3% LMI waived, oh well!).

I have bought the property as an investment as I needed the rent to obtain finance. As my broker has explained if I move into the property within the first 12 months (I think for a 6 month period?) I can apply for the 40% stamp duty saving. Has anyone done this? If so what is the process? Anything to be cautious of?

I am planning to move into the property around the 10 months period after settlement & do some much needed renovations so I'm hoping the refunded stamp duty amount is easily obtained to assist with reno's. Also to clarify on my first property I purchased in 2011, FHOG was never claimed & I have never lived in the property so to my understanding am still eligible for the stamp duty saving.

Any help/advice would be great!
 
I have bought the property as an investment as I needed the rent to obtain finance. As my broker has explained if I move into the property within the first 12 months (I think for a 6 month period?) I can apply for the 40% stamp duty saving. Has anyone done this? If so what is the process? Anything to be cautious of?

I guess the lender may be confused ?


ta
rolf
 
Hi Rolf,

The only reason I am moving into the property is to obtain the 40% stamp duty saving. I have just pulled this info from State Revenue Office website which clears things a little.


"The Victorian Government offers eligible first home buyers a duty reduction when they purchase a new or established home. The duty reduction applies where you buy a principal place of residence valued at not more than $600,000 and where the settlement date is on or after 1 July 2011.

Meeting the eligibility requirements for the First Home Owner Grant (FHOG), will entitle you to the duty reduction, however, you will not be entitled to the FHOG if you buy an established home and the contract date is on or after 1 July 2013.

Eligibility criteria for the duty reduction for both new and established homes includes that you must reside in the property for a continuous period of 12 months commencing within 12 months of settlement."
 
Looks like the same wording as on the QLD Office of State Revenue website... BUT, there just happens to be a well hidden clause stating that you can only honour an existing lease for 6months, and you can't extend it. Be careful with that one.

You really need to ring the Office of State Revenue to have the conversation establishing that you're entitled to the grant (which they record), note the name of person you speak to, time, date etc. so you have it on record.
 
Thanks for the reply's guys. Sorry I should have been clearer, the property I have purchased is currently tenanted on a month by month contract so evidence of rental income was easily obtained. After settlement I plan on giving notice well in advance that I will be moving into property within that 12 month period.

I will make the phone call to State Revenue Office to see what I'm currently entitled to and note all details as mentioned. Appreciate the advice.
 
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