The Biking Broker Newsletter - 5th August 2011

New Transfer Duties in Qld and the $10,000 Building Boost Grant: Should you buy property now?

There were significant changes in transfer stamp duties introduced from 1 August 2011 in Queensland, along with the introduction of a $10,000 building boost grant for Queensland.

Transfer stamp duty is paid to the government when a property is bought, or the title is transferred to a third party.  Currently, first home buyers are eligible for a full concession if the purchase price is below $505,000. The only change here is an increase in the concession threshold to purchases below $510,000 after 1 August.  The major change after 1 August is that home owners will no longer be eligible for a concession and investors will pay a lower rate. I’ll detail the changes with two examples within a price range expected in the current market.

Property price	$220,000		$300,000
Transfer date	July	1 August	July	1 August
Purchaser type
First home buyer	$0	$0	$0	$0
Owner occupier	$2,200	$5,525	$3,000	$8,325
Investor	$6,125	$5,525	$8,925	$8,325

 

Contracts signed from 1 August inclusive will be subject to the new rates.

The kicker for those buying a new home or building is the $10,000 will be available on contracts signed from 1 August only.  A double win for investors buying new, as the transfer duty drops and they get the boost.

Also, from 1 August eligible first home buyers building a new home still have access to the $7,000 FHOG and the $10,000 boost!

What constitutes a new building?

Obviously, a contract you enter into to build or buy off the plan results in a new building, which qualifies.  A vacant house being sold by a builder qualifies as long as no one has lived in it.  Some scenarios such as those involving extensive renovations or removal houses would need to be assessed by Office of State Revenue, but generally, an extensively renovated house that meets the other conditions, is eligible.  Please contact the OSR on 1300 300 734 for clarification.

Contract dates

To be eligible for the Building Boost Grant, a contract needs to be signed for the purchase of a new property between 1 August 2011 and 31 January 2012, no ifs or buts, no re-written contracts!  If you’re building, a construction contract must be signed within the above dates, building commenced within 26 weeks of the contract date AND building must be completed within 18 months of the contract date.  Someone must take residence at the address within 12 months of ownership.  Off-the-plan constructions need to be completed by 31 July 2013.

Remember, the boost ends on 31 January 2012.

Property value limits

The value of the property, including land must be less than $600,000 to qualify.

Can I claim more than one $10,000 grant?

Yes! Build or buy as many new houses, duplexes or townhouses as you can. The grant can only be claimed once for each property (i.e. not by the builder and the buyer).

Details of changes in stamp duty, boost and FFHOG grants and abolishment of the ambulance levy can be found here>>

FAQS on contract dates, occupancy requirements and eligibility can be found here>>

If you would like help calculating the effect of stamp duty changes and the boost grant on your next property purchase, give me a call.