(VIC) Do I get the FHOG - Stamp Duty Concession when buying vacant land first then building

Discussion in 'The Buying & Selling Process' started by Michael8, 17th Nov, 2019.

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  1. Michael8

    Michael8 New Member

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    16th Nov, 2019
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    Victoria
    Hi everyone,

    First home buyer in VIC here. I have found it difficult to research how the FHOG applies to buying a block of vacant land and then building (not as a house and land package). This would be located in regional Victoria and the total cost/value would be less than $600,000.

    From what I have read, it seems like I would still have to pay Stamp Duty on the land but I would receive the FHOG of $20,000 when I build. I have also read that a few other states put no Stamp Duty on vacant land (up to an amount) for First Home Buyers.

    I know that I would get no Stamp Duty fees if I buy an established house or house & land package below $600,000.

    Am I right in thinking that I wouldn't get any Stamp Duty Concession on my vacant land purchase even though I am building on it to live in?

    Thanks in advance, hope I didn't make this too complicated.
     
  2. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Melbourne
    The State Revenue Office has a helpful free advice line: PH 132161. Lots of information on their website.
     
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  3. Curious2019

    Curious2019 Well-Known Member

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    You can get the stamp duty concession on land that you are going to build on as long as you meet the conditions below;

    From the SRO website; First home buyer duty exemption, concession or reduction | State Revenue Office

    Vacant land contracts
    The first home buyer duty exemption or concession may apply if you have bought vacant land on which you will build your first home. To be eligible you need to:

    • Have entered into your contract to buy the vacant land on or after 1 July 2017.
    • Entered into a contract to build your home on the land within 12 months of getting possession of the property.
    • Complete and move into your completed home within 12 months of settlement on your contract to buy the vacant land.
    For the purposes of assessing your eligibility for this exemption or concession, we only consider the value of the vacant land. We do not include the value of your building contract.

    I’m not sure on the timing though, your bank or conveyancer might apply for the exemption on your behalf when you buy or finance the land.. best to check first.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    Check out the duties act vic
     
  5. Michael8

    Michael8 New Member

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    16th Nov, 2019
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    Location:
    Victoria
    Thanks everyone for the advice.
     
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