Stamp duty for first-time investors?

Discussion in 'Loans & Mortgage Brokers' started by macy17, 5th Apr, 2021.

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  1. macy17

    macy17 Member

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    Sydney
    I'm looking to buy an investment property for the first time. I also have plans to move into it one day, when the situation arises. I know I qualify for the stamp duty concession (provided I buy under the cap, I live in NSW) and want to take advantage of it.
    I'd imagine I could do this by living in the property for the first 6 months and then moving back out so I can rent the place out. I've heard this is quite common, but wondering how it would work in practice:
    1. Do they need to get an owner-occupier home loan and then refinance it to investment after you get a tenant? If so, I'd assume this would mean I shouldn't get a fixed rate?
    2. Do all your official letter correspondence (bank statements etc) need to be posted to that property in those 6mths (as it's your principal place of residence)?
    3. How would tax work, given you're an investor for half the year?
    4. Would a broker be handy for this, or would they only really be able to help with getting you in a loan and refinancing?
    5. Any other things that I'd need to do/can't do? What is the best way to do it?

    Any advice would be great, thanks!
     
  2. Trainee

    Trainee Well-Known Member

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    Are you looking to buy a new place?
     
  3. kierank

    kierank Well-Known Member

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    Are you aware of the 6-year rule?
     
  4. macy17

    macy17 Member

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    Hi, yes I am but currently I'm more interested in whether I'm eligible for the stamp duty concession by living there for 6 months.
     
    kierank likes this.
  5. macy17

    macy17 Member

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    I'm looking to buy an established home, though I wouldn't mind a new place that wasn't off the plan.
     
  6. Trainee

    Trainee Well-Known Member

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    You may want to look into the depreciation rules, and what it means if you live in it first.
     
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  7. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    23rd Aug, 2015
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    Location:
    Bella Vista
    Hey buddy

    Yes you will need to live in it for 6 months within the first 12 months of purchase

    1 - don't need to refinance back to INV loan as this is a simple switch form or a phone call- but if fixed at OO rates you can just leave it as is and no need to break it.

    2- yes

    3- you will claim deductions when it turns into an investment- prorata for that year, you will need to talk to your accountant and inform him of this.

    4- brokers are the best (with the exception of a few lemons but that's like anything)

    5- sit down with a professional and talk about your scenario.


    Good luck