First Home Concession Qld dilemma!

Hi all.

I purchased my first property last year as my PPOR and was eligible for the First Home Concession on Qld.

My circumstances have changed and my employer is transferring me interstate. If I rent the property I understand that I 'dispose' of the property and therefore have to notify state revenue.

In these situations, do they require you to repay the entire transfer duty plus interest? Or just a portion for the period of the initial 12 months you do not reside in the property?

Thanks

 

how long have you been in the property for? is there a minimum period you have to reside there to qualify in QLD?

according to this there is no minimum time to reside there after claiming the concession, you just aren't allowed to sell the property within the first 12 months. I think you will be fine, if it is ever queried (happens sometimes but not often) just show that you received a genuine job opportunity and it presented itself after you claimed the grant and moved in.

I wouldn't consider renting the property to be a disposal of the asset

First home concession | Homes and housing | Queensland Government

edit - looks like I was wrong, renting is consider a disposal which is pretty odd. when did you move in? you need to calculate what you will lose in concessions vs rental loss if you keep it empty until the 12 months is up.

First home concession | Homes and housing | Queensland Government

 

Yeah, dispose includes renting the property out. Anything that gives its exclusive use to someone else.

 

When was the Purchase date is the burning question?

 

I will have occupied the property for 10 months.

 

So why not delay renting it for 2 months?

 

You can work out whether it will be better to apply for reassessment or keep the property vacant using the formula for the reassessment used by OSR:

where—

C means the difference between the transfer duty that would have been imposed on the dutiable transaction if the concession had not applied to the transferee, lessee or vested person and transfer duty assessed on the dutiable transaction.

OD means the number of days between the transferee's, lessee's or vested person's occupation date for the residence and the date of disposal of the land, both days inclusive.

TD means the further transfer duty payable on the reassessment.

OSR may then choose to impose UTI (currently 10.15%) on this amount.

The pro rata amount of duty on a $500k purchase price is circa $1,325/month. Based on a yield of 4% you would be slightly better off applying for a readjustment and renting the property but by the time you account for UTI, letting fees etc it's probably about neutral. This will also depend on the actual yield and purchase price in your case.