All Topics / Help Needed! / First Home

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of rudra_rrudra_r
    Participant
    @rudra_r
    Join Date: 2009
    Post Count: 61

    Hi all,

    I’m in the process of looking for my first home (in Brisbane). I plan to rent it out initially for 1 year to allow me to pay some of it down quickly but this may extend to 2 or 3 years depending on how quick I can do this. My question is regarding stamp duty and should I be paying based on it being an investment or a home? The difference is about 7k as I am looking at the 500k to 500k price point. I would like to know the implications of buying it as a home in terms of stamp duty but not moving in straight away.

    Cheers
    Rudra

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Rudra

    The implications is that it can be more expensive for an IP in some states. Secondly, there will be some CGT implications – I'd assume it will be applicable for the duration it's an IP. Lastly, I doubt you'd be able to claim the stamps as a deduction in QLD (you can in the ACT) – you'll probably find that it comes off the cost base when selling the property and working out CGT.

    In any case, speak with an accountant before purchasing.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of rudra_rrudra_r
    Participant
    @rudra_r
    Join Date: 2009
    Post Count: 61

    Hi Jamie,

    Thanks for that, I've got an appointment with my accountant and solicitor to discuss this. I was hoping to be able to deduct the investment stamp duty as I worked out it would bring the cost back to that of a owner occupied stamp duty.

    Cheers

    Rudra

    Profile photo of iBuyNewiBuyNew
    Member
    @ibuynew
    Join Date: 2013
    Post Count: 5

    What about the incentive offered by the state Government. If you buy new and live in it for a short period, then the Government will give you $15,000!

    Read this to find out more: https://greatstartgrant.osr.qld.gov.au/

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    you can always claim the grant later… provided they dont get rid of it.

    I think the potential CGT excemption outweights the alternative of having it as a IP for the whole duration. Better off living in there for 6 months taking the grant money and then renting it out after that and being able to claim it as your PPOR if ever sold

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.