VIC Stamp Duty reduction/concessions

Hi everyone,

I have a couple of questions regarding whether I would be entitled to any stamp duty reductions for the purchase of my next property.

My situation: currently own 1 property in Vic which has been an IP since day 1 so no stamp duty concessions were received. I still live with the folks in the family home.

I’m looking at hopefully purchasing a 2nd property in Vic over the next few months. If this 2nd property was going to be my PPoR would I be entitled to either:
1. First home buyer duty reduction (currently 50% but increasing to 100% from 1 July)
2. Principle Place of Residence (PPR) concession

Also interested to know why/why not I may/may not be entitled to any of the above.

Ash

 

FHB - no.
PPR - maybe depending on purchase price.

Principal place of residence (PPR) concession | State Revenue Office

 

Yes, if you have never lived in your investment property and you haven't claimed the PPR and first home buyer reduction previously, you are eligible for both if you buy a PPR (depending on the purchase price).

 

I could be wrong, but I believe the act in Victoria states something along the lines of a FHB is someone who's lived in a property they own for 6 months or more.

If you've never lived in the property and otherwise claimed first home owners benefits, you're definitely still able to get them later in Victoria.

 

No Peter: you can't claim first home owner benefits if you've ever lived in the property. Investors don't get the stamp duty discount or FHOG. Investors do get the off-the-plan stamp duty discount (until 30 June).

 

Yes, Peter is right, you are eligible for fhb stamp duty concessions if you haven't lived in the IP and the IP was bought after July 2001 or whenever the fhog was brought in.

It's easy to check on the sro website or give them a call.

It'll be interesting to see if this is grandfathered into their upcoming changes to fhb stamp duty in the next budget....

 

I'm fairly certain that there are circumstances where you can have lived in a property you or your partner owned for a short period of time and still be eligible for the grant or concession on a later purchase. I've had a client who was still eligible for the FHOG are residing in a property for a few months (and it was fully disclosed in the application).

It's certainly not something I'd recommend testing though. It's fairly easy to keep it nice and neat. Don't live in your IP and you'll still get the stamp duty concession and FHOG. I've got plenty of precedent on this.

 

Elegibility here: First Home Owner | State Revenue Office

You’re not eligible for the FHOG if you or your spouse/partner have already:

• Received the FHOG in Australia,
• Owned a home in Australia, either jointly or separately, prior to 1 July 2000,
• Lived in a home in Australia in which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months

These criteria apply even if your spouse/partner is not an applicant with you for the FHOG.

 

"LIved in the home for a continuous period of at least 6 months", is one of the definitions in the First Home Owners legislation. It does allow you to live in your IP for a short period and then still receive the benefits at a later date.

It does also apply the other way. If you buy your first home, get the benefits and then move out shortly after, you're required to pay back those benefits. You would still be entitled to those benefits again when you by another house to live in.

 

An update - called SRO and I am entitled to the 100% stamp duty exemption as I've never owned a "home" before. I obviously would need to live in the property for 12 months and move in within the first 12 months to be eligible though.

I have a question around CGT and the 6 year rule. If I hypothetically purchased the property with the intention of initially renting it out (financed as an investment loan), then upon settlement changed my mind and decided to move in for 12 months (satisfying stamp duty exemption requirements), moved out of it after 12 months then rented it out for say 5 years before selling, would I be required to pay CGT?
Let's assume this is my only PPOR

 

Intention is not really relevant -its the facts that count. Will hte property meet all the requirements for the main residence exemption?

 

What are the requirements?

 

Do some research

 

and did you choose to consider any other property owned by you or a spouse during that same time as your main residence.

.

 

Apologies for the break in the discussion...

Hi Paul - I'm trying to reach you but am having troubles with your email address. I've left a message on your profile too. Please contact me even if the answer is no Katie

 

I dont accept PMs and never reply using PM. I have concerns that PC messages can be read and take privacy very seriously. My email address is below.

 

my situation in the 2000s was different i claimed the First home owner grant for a property townhouse (fresh build) in wantirna south was build, and paid however i never lived in the property and sold it a year later. Upon doing so, i paid the first home owner grant back to the SRO. then when the time came to buy a property i was going to move in - i made another application for the First home owner grant around the late 2000s was the highest back then and they gave me the grant.