Join Australia's most dynamic and respected property investment community

Stamp duty reduction FHB (IP -> PPOR)

Discussion in 'General Property Chat' started by oasis, 15th Apr, 2016.

Tags:
  1. oasis

    oasis Member

    Joined:
    30th Oct, 2015
    Posts:
    12
    Location:
    Melbourne
    I'm tossing up between buying an investment property or a principal place of residence as my first property.

    As per the following link Duty reduction for first-home buyers | State Revenue Office, first home buyers will receive a 50% reduction on stamp duty.

    If I were to purchase an investment property as my first property and then several years later, purchased a principal place of residence, will I still be able to receive this 50% reduction on stamp duty?

    I can't seem to find the answer to this...

    Also, as a side, any thoughts on buying investment property first then a principal place of residence? Pros? Cons?

    Cheers
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,993
    Location:
    Sydney
    Have a look for the duties act VIC and see if you can find the legislation.
     
  3. oasis

    oasis Member

    Joined:
    30th Oct, 2015
    Posts:
    12
    Location:
    Melbourne
    The below seems to suggest that I can buy a IP and then a PPOR (and still claim the stamp duty reduction on the PPOR).

    DUTIES ACT 2000 - SECT 61

    Who is an eligible first home owner?
    (1) A person is an eligible first home owner for the purposes of this Division if the Commissioner is satisfied that—

    (a) the person is a bona fide purchaser of an estate in fee simple in land for adequate consideration; and

    (b) the person intends to reside in a dwelling on the land as a principal place of residence; and

    (c) the person has a dependent child and had a dependent child at the time when, or within 11 months after—

    (i) if there was a dwelling on the land when the contract of sale of the land was entered into—the date on which the contract of sale was entered into; or

    (ii) if there was no dwelling on the land when the contract of sale of the land was entered into—the earlier of—

    (A) the date on which the contract for the construction of the dwelling was entered into; and

    (B) the date on which the building of the dwelling commenced; and

    S. 61(1)(d) repealed by No. 29/2002 s. 4(3)(a)(i).

    * * * * *
    (e) the person has not previously held an estate in fee simple in land on which was erected a dwelling which was used as a principal place of residence by that person anywhere in Australia.

    S. 61(2) amended by No. 27/2001 s. 3(Sch. 1 item 2.7).

    (2) A person and his or her partner together are eligible first home owners if each of them satisfies the criteria set out in subsection (1).

    S. 61(3) amended by No. 27/2001 s. 3(Sch. 1 item 2.7), repealed by No. 29/2002 s. 4(3)(a)(ii).

    * * * * *

    (4) In this section—

    person, means a child under the age of 18 years in the custody, care and control of, and ordinarily resident with, the person.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,993
    Location:
    Sydney
    This section only defines 'eligible first home owner', You will have to look for another section which outlines the concessions - if you meet the defintion.
     
  5. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    74
    Location:
    Melbourne
    No, but under the current rules, if the purchase price is up to $550,000, you will be eligible for the $3,100 PPR duty concession.