All Topics / Legal & Accounting / PPOR to IP – Stamp Duty

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of bamutebamute
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    @bamute
    Join Date: 2003
    Post Count: 9
    May 14, 2006 - 5:39 am

    Hello all,
    I am looking at using the first home owners grant to buy a PPOR, live in it for 6 months or so and then rent it out. Will I have to pay extra stamp duty to turn the house into an IP?

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    May 14, 2006 - 8:41 am

    If you want to claim the stamp duty concession, then I beleive there is a requirment that you live in the house within the first 12 months. Once you have moved in you would meet these requirements, and so could move out again and rent it.

    Terryw
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    Profile photo of bamutebamute
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    @bamute
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    May 15, 2006 - 10:51 am

    Sounds good. I don’t mind being in the house for a year and then renting it out. As long as there are no hidden costs:-)

    Profile photo of lyndon_glyndon_g
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    @lyndon_g
    Join Date: 2006
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    May 15, 2006 - 11:46 am

    You only have to move in within 12 months.. not live there for 12 months. You do however have to be there for 6 months for the FHOG as you said, so i am assuming that you need to be there for only 6 months for the stamp duty concession also. i think!

    Cheers

    Lyndon

    Profile photo of bamutebamute
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    @bamute
    Join Date: 2003
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    July 13, 2006 - 2:14 am

    If you change your ppor into an ip after 12 months can you claim the stamp duty as you would if the house was bought as an ip?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 13, 2006 - 2:41 am

    Assuming you are referring to the Contract Duty payable on the purchase price regretfully this cannot be claimed on a IP.

    The amount paid is added to the purchase price and increases your Cost Base for CGT when you eventually sell the property.

    Cheers

    Richard Taylor
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    Profile photo of AmandaBSAmandaBS
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    @amandabs
    Join Date: 2005
    Post Count: 549
    July 13, 2006 - 4:27 am

    You’ll find general information about FHOG at
    http://www.firsthome.gov.au

    Amanda
    “It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

    Profile photo of bamutebamute
    Participant
    @bamute
    Join Date: 2003
    Post Count: 9
    October 3, 2006 - 4:15 pm

    Hello again, one other much delayed question. I realise you can claim lenders mortgage insurance back over 5 years on an IP. If you purchase a house as a PPOR using LMI and then change it to an IP after 6 months can you claim the LMI? Cheers all.

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