Good News for New Home Buyers – By Barry van Heerden – Partner
From 1 July 2012 the Transfer Duty Home Concession that was available for the purchase of homes prior 1 August 2011 will be reinstated by the Queensland Government.
This means that buyers will be entitled to a home concession when purchasing a home if they meet certain conditions. It must be remembered that the home does not need to be the person’s first home.
There is currently a concession available for the purchase of a first home. No duty applies for homes up to $500,000.00 and thereafter a phasing out rebate applies for values up to $600,000.00.
To qualify for the first home owners concession, it must be the buyer’s first home and certain occupancy requirements must be met. The buyer must move into the home within one year of the transfer date and cannot sell the property within the first 12 months from the transfer date. The buyer is also not allowed to rent out the property after settlement. There is one exception to the renting condition in that the vendor or the vendor’s tenant may remain in possession of the home for up to 6 months after the transfer date.
The occupancy requirements to qualify for the home concession will be the same as for the first home concession.
Where the home concession applies, the transfer duty rate will be $1.00 for each $100.00 or part thereof up to $350,000.00 of the value of the home. Duty at the normal rate will apply to the remaining part of the consideration.
It is important to note that the concession only applies to agreements entered into after 1 July 2012. Any agreement of whatsoever nature entered into before 1 July 2012 and only formally documented after 1 July 2012 will not be eligible for the concession.
Please do not hesitate to contact our Property and Commercial Department on 1800 621 071 or email email@example.com should you require any further information regarding the home concessions that may be available for the purchase of your home.