PPOR Stamp Duty Exemptions (VIC)

Hi All,

I'm keen to understand how the ATO verifies PPOR vs Investment properties for the purposes of stamp duty exemptions.

Im currently living with my parents, but looking to purchase an IP not too far away in hawthorn area.

I intend on purchasing property as PPOR, not renting it out for 12 months and connecting utilities and my registered post to that new property. I can even live in the apartment every few weeks or so, to keep utility bills running. Is there a risk of being caught out If i follow through on my plan?

 

You wont have rent coming in, interest and other costs arent deductible, and it affects your depreciation.

whats the point of the fraud?

 

Rent - The estimated rent income i'm going to recieve (less tax) (400 x 52) will be less than the stamp duty i have to pay (35000).

Depreciation - I was under the impression that depreciation occurs over multiple years. If i rent out the property in the 2nd year onwards, won't I be able to claim depreciation related tax deductions in that year as my property is re-classified?

 

The ATO doesn't verify. Stamp Duty is a State tax not a Commonwealth tax.

 

You're planning to commit fraud. Up to you if you want to go ahead, just make sure you're willing to suffer the consequences if caught.

 

Why wouldn't you just live in it for the required time and establish it as both the PPOR and main residence

 

If you're not going to rent it out, why don't you just move in?

 

The First Home Buyer Scheme really screwed the genuine FHB that in fact needed a first home as per scheme