Duty – How to save thousands when you buy a House!

Duty – How to save thousands when you buy a House!

The Queensland Budget handed down in June will make it cost many thousands more to buy an existing home, if you are not a first home buyer. There is a big incentive to buy or sell now, before the changes come into effect.

If you are planning to build a home you can receive a grant for $10,000 if you get your timing right.

There are winners and losers in this Queensland Budget and if you are thinking of selling or buying you must pay careful attention, because, everything will change on 1 August 2010.

Queenslanders do not pay duty on FIRST HOME purchases up to the value of $500,000.00 and this is not changing. The rest of us are in a different situation.

Existing home owners hoping to upgrade or downsize to another property face stamp duty hikes of up to $7175.00. These changes come into effect on 1 August 2011 so there is an incentive if you are looking to buy at the moment. If possible sign the contract before 1 August 2011!

Sellers should also take notice as they may find that buyers are more motivated to purchase before 1 August, before they get hit with the additional duty! 

If you are thinking of buying a newly constructed home or considering signing a building contract you may wish to wait until the governments $10,000 grant is on offer. The building grant is restricted to properties under $600,000.00. The contract will need to be signed between August 2011 and January 2012.  Six months will be allowed after signing, to commence construction and, then another 12 months is allowed to complete the construction. To be eligible it is essential that the time frames are complied with.

Obviously the winners from this budget are those buying a new home as they will receive $10,000 which was not previously on offer.

First home buyers of existing properties may be unaffected.

Buyers and sellers of existing homes should take advantage of the time lag before introduction as they will be worse off after August. The cost of the transaction may increase by as much as $7175.00 if they cannot sign a contract before 1 August 2011.

If you have any questions please contact Riba Business Lawyers.

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