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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
RudraHi 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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
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
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/
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
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