IntrigueMember@intrigueJoin Date: 2010Post Count: 208
Just having a look at the QLD budget announcements and changes for Transfer Duty (Stamp Duty). Curious to gain peoples thought on this.
For me as a small wanna be investor the changes are negligent.
For the person purchasing an existing home to reside to changes are significant!
For somebody (lets say young couple) purchasing an existing home for $350k the transfer duty changes from $3,500 to over $10,000. Now if they are first home buyers they still get the $7,000 grant (good huh, not really it now only covers the cost of the increased stamp duty). And if they are not eligible for FHOG ouch!
Okay so lets say this couple decide to purchase a brand new home instead the gvt will now give them $10k in the building boost grant + $7k first home owners if eligable (good huh, not really cause the $10k is now needed for the stamp duty and the $7k well they would have got that anyway). And they probably spent $10k too much for the new home cause the builder now knows he has a captive market.
So who is better off, the first home buyer today or the one post August when all this money is to be dished out.
I could be missing something but all looks SMOKES AND MIRRORS TO ME
If I wasnt such a property fan I would this looks like a way to push first home buyers into higher priced property and higher debt levels, helping banks, builders and realestate agents, avoiding backlack from investors who's property values are declining all under the disquise of helping the poor aussie battler first home buyer.. pfft
Perhaps I just got out of the wrong side of the bed… thoughts anyoneIntrigueMember@intrigueJoin Date: 2010Post Count: 208
Sorry forgot to attach link
http://www.budget.qld.gov.au/current-budget/tax-reform/index.shtmlTerrywParticipant@terrywJoin Date: 2001Post Count: 16,173
My understanding is we get a short term (6 month stimulus from August) in the way of a $10,000 grant for anyone buying a newly-constructed home/unit priced under $600,000
First-home buyers will remain stamp duty exempt on purchases up to $500,000 and still be eligible for the first home owner’s grant of $7000 plus the additional $10000 grant if they buy new.
The initiatives will be paid for by increases to stamp duty for principal places of residence, for people who have previously bought property. Presently, an existing home owner buying a PPOR worth $500,000 would pay $8750 however the same property bought as an investment stamp duty would be $15,925
From August 1, stamp duty payable will be the same for investment homes or principal places of residence. After the changes, the buyer in both cases would pay $15,525, representing a hike of $6775 on the PPOR. The increase on properties worth more than $600,000 would be $7175.
It’s a bit of robbing Peter to pay Paul as far as I see it.
This very short 6 month term of the grant is expected to boost construction of new homes and clear a bit of the back log of house and land packages whilst camouflaging the ongoing hike in stamp duty. This decision will do nothing for the general QLD property marketplace. If anything be more harmful to an already sluggish market making it more trying for people to sell and buy hence the decision is very badly timed.
On another note it was only February this year the Qld treasurer Andrew Fraser said stamp duty, was ineffective, a relic of the past and he wanted it abolished with federal government help but his response this week is to like double it….??
Go figure what sort of political economic lunatics are running this state?
Just a bit of backgound.. maybe a bit of motivation for the smoke and mirrors from the state goverment????
Some relief at last?
About one-quarter of Queensland’s total revenue comes from taxation. One fifth of the state’s taxation receipts come from transfer (stamp) duty. During 2009/10, Queensland collected just over $2 billion worth of stamp duties across 125,000-odd transactions. This financial year, it is estimated that less than $1.8 billion worth of duties will be banked. This is down 11% on the year before. Total property transactions are down a whopping 30% to be about 90,000 sales during 2010/11.
Now the Queensland state government is estimating that just over $2.17 billion worth of transfer duties will be received over the next twelve months. Well, based on current form, that isn’t going to happen. Andrew, what’s it like to finally experience that sinking feeling?mattnzParticipant@mattnzJoin Date: 2007Post Count: 574
Works great for me as I am planning to get 2 townhouses built on land I have already purchased in QLD.
Dixon homes sent me this information
2011-12 BUDGET GIVES NEW BUILDING BOOST!
The 2011-12 QLD State Budget includes major revenue reforms and assistance packages, including a $10,000 Building Boost Grant for people who have signed a contract to build or buy a new home before the 31st of August 2012.
$10,000 Queensland Building Boost Grant
Available for a limited time only – 1 August 2011 to 31 January 2012
The $10,000 Queensland Building Boost Grant is available to any person or corporation buying or building a new home to live in, or to rent out for investment purposes, for homes less than $600,000.
The Building Boost Grant is designed to re-ignite Queensland’s housing construction sector following a combination of falling property transfers and the economic impact of a summer of natural disasters.
$10,000 Queensland Building Boost Grant – frequently asked questions
What is the Queensland Building Boost Grant?
The Queensland Building Boost Grant is a grant of $10,000 for a person or corporation buying or building a new home in Queensland for a value less than $600,000. The grant is to assist recovery in the housing construction sector, Queensland’s third-largest job generating industry.
When can I apply for the Queensland Building Boost Grant?
The Building Boost Grant runs from 1 August 2011 to 31 January 2012.
What is a new home?
A new home is a home that:
has not been previously occupied or sold as a place of residence; or
is a substantially renovated home (see below).
A home is a substantially renovated home if:
the home is the subject of a contract for the purchase of the home; and
the sale of the home under the contract is, under the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), a taxable supply as a sale of new residential premises as defined under section 40-75(1)(b) of that Act; and
the home, as renovated, has not been previously occupied or sold as a place of residence.
Are there value limits?
Yes, the home must be less than $600,000.
Who can obtain the grant?
The grant is open to home buyers and investors (18+ years of age). Corporations and trustees may also apply.
The grant is not payable for a building contract, or to an owner builder, if the applicant carries on the business of building homes and the home was constructed for sale in the course of that business.
Can an ‘off the plan’ purchase qualify?
Yes. A contract for the purchase of a new home on a proposed lot on an unregistered plan of subdivision of land may qualify for the grant if all other conditions are met.
When do I have to buy/build to get the grant?
Each of the following transactions may attract the grant.
A contract made between 1 August 2011 and 31 January 2012 (both inclusive) for the purchase of a new home in Queensland.
A comprehensive home building contract made between 1 August 2011 and 31 January 2012 (both inclusive) by the owner of land in Queensland, or a person who will on completion of the contract, be the owner of land in Queensland, to have a new home built on the land.
The building of a home in Queensland by an owner builder if the building work starts between 1 August 2011 and 31 January 2012 (both inclusive). For owner builders, the start of building work is usually the laying of foundations for the home.
If I’m building a new home, are there construction time limits?
For a comprehensive home building contract, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting.
For an owner builder, building work must be completed within 18 months of the work starting.
For a contract to purchase a new home off the plan, the building work must be completed by 31 July 2013.
Do I have to live in the home?
No. However there are other occupancy conditions – see below.
Is there an occupancy requirement?
Yes. The home must be first occupied as a place of residence during the ownership of the home by the applicant. However, it does not matter who occupies the home. For example, the home may be occupied by a family member or rented to a tenant.
A person, such as a builder, who builds a home and sells it before it is occupied cannot claim the grant. The purchaser may be eligible however.
Where the occupancy requirement is not satisfied, the applicant must notify the Commissioner of State Revenue and repay the grant.
Can I obtain more than one grant?
Yes. The grant can be obtained for each new home purchased or built where the grant conditions are met.
Can the grant be obtained more than once for the same home?
No. The grant is only payable once for a particular new home.
Can I obtain the Building Boost Grant along with the First Home Owner Grant and the First Home concession?
Yes. If the new home being purchased is your first home and you meet all of the other eligibility criteria, you may be entitled to the $10,000 Queensland Building Boost Grant, the First Home Owner Grant of $7,000 and the first home buyer transfer duty concession.
Read more on the First Home Owner Grant and First Home Owner duty rate concessions.
Do replacement contracts and options qualify?
No. The grant applies to contracts to purchase or build a new home entered into on or after 1 August 2011. Contracts made before that date are ineligible. If a contract made before that date is cancelled and a replacement contract for the home is executed on or after 1 August 2011, the replacement contract will not be eligible for the grant.
Also, if an option to enter into a contract to purchase or build a new home is granted before 1 August 2011 and exercised on or after that date, the contract will not be eligible for the grant.
How do I apply for the grant?
The Queensland Building Boost Grant opens on 1 August 2011. The Office of State Revenue (OSR) is currently developing the application form. The application form will be published on the OSR website before 1 August 2011.
OSR is presently developing the necessary systems and processes for the start of the grant on 1 August 2011. Consultation will occur with the Queensland Law Society and financial institutions (banks and lenders) about the application process and payment methods. More information will be published on the OSR website as soon as it is available.
Other changes relating to the building industry
$7,000 First Home Owner Grant
Continuing and available now
The $7,000 First Home Owner Grant was created to help you buy or build your first home. The grant applies to first home buyers purchasing a home with a value less than $750,000.
Closes 31 July 2011
The Home Concession for transfer duty will end on 31 July 2011. This is the transfer duty concession that people who are not first home buyers receive when buying a home to live in as their principal place of residence. If you are considering buying a home you should carefully consider the transfer duty reforms to help you make an informed decision about the timing of your purchase.
New transfer duty rates
Commence from 1 August 2011
The transfer duty rate structure will be revised to ensure transfer duty payable on a home remains lower in Queensland than under the standard rate in any other mainland state of Australia. If you are considering buying a home you should carefully consider the transfer duty reforms to help you make an informed decision about the timing of your purchase.
First Home Concession and Vacant Land Concession
Continuing but changing from 1 August 2011
First home buyers will continue to receive a First Home Concession on their transfer duty costs. This includes first home buyers purchasing blocks of residential land to build on.
The concession rates have been adjusted to take into account the removal of the Home Concession.
I presently have 5 boutique apartments and a fully renovated house under construction with a completion date and on the market mid-August. 3 out of the 6 will qualify for the grant as they are a tad under the $600000 limit but can’t say that I think all my xmass have come at once.
Thinking the new home market operates in isolation of the established housing market is fundamentally flawed. Slapping home buyers with an additional $6000 or $7000 of tax in today’s climate will further slow the whole real estate market – established and new. So in my opinion they won’t be handing out too many of those $10,000 cheques…… we may get a ripple but not a tsunami.
The truth is our state government seems to be besieged with balancing the books and had to fund some “headline good news stories” after all we have an election coming up.
Our state treasurer is just cloaked it with smokes and mirrors.Matt007Member@matt007Join Date: 2008Post Count: 259
An idiotic government robbing Peter to pay Paul with zero understanding of how to manage a budget. Concocted purely as a 're-election' strategy rather than a practical or realistic one.
First class idiots the lot of them.
NEXT!assetconveyancingParticipant@assetconveyancingJoin Date: 2011Post Count: 1
One of the previous reasons interstate people moved to Queensland (apart from the sunshine) was for the lower stamp duty applicable on home purchases. This is a major factor when deciding to purchase either in the Tweed region or the Gold Coast with most deciding for the latter. Perhaps with similar rates of duty, the Tweed region will now prosper. Whilst the Qld government must look at ways to increase revenue, it is highly disappointing to see they have now followed the other States by using the stamp duty on homes. I guess it is easier to raise large sums of money in a small number of transactions. Less people to rattle the ship!keikoParticipant@keikoJoin Date: 2008Post Count: 513
The GOV should allow property buyers to pay the stamp duty off, so that it keeps the economy going as some buyers find it hard to save a deposit let alone $15k for stamp duty.
Maybe the bank loans the stamp duty to the buyer inside of there home loan and then it gets paid to GOV but if the home owner goes belly up then the GOV pay the stamp duty back to the bank, at least this way it will make it easier for property buyers. the bank will make interest on the money and the GOV will not loose as it is only a bit of paper work being shifted around, and I am sure there would be more transactions happening each year due to more people being able to afford it.Andrew_AParticipant@andrew_aJoin Date: 2003Post Count: 392beedie wrote:Mattnz, I presently have 5 boutique apartments and a fully renovated house under construction with a completion date and on the market mid-August. 3 out of the 6 will qualify for the grant as they are a tad under the $600000 limit but can’t say that I think all my xmass have come at once. Thinking the new home market operates in isolation of the established housing market is fundamentally flawed. Slapping home buyers with an additional $6000 or $7000 of tax in today’s climate will further slow the whole real estate market – established and new. So in my opinion they won’t be handing out too many of those $10,000 cheques…… we may get a ripple but not a tsunami.
The truth is our state government seems to be besieged with balancing the books and had to fund some “headline good news stories” after all we have an election coming up.Our state treasurer is just cloaked it with smokes and mirrors.
This seems like a reasonable explanation to me, apart from the smoke and mirrors ploy I can make no sense of these policy changes.gomez109Member@gomez109Join Date: 2009Post Count: 12
So, if you wanted to make a bit of money from this, couldn't you buy a large block of land now (under the old stamp duty rates) and then commence building 3 townhouses for investment purposes on the land after 1st August, you could claim this 3 times, couldn't you?
(Of course, it does need to make sense in its own right, but given I was thinking about doing this construction anyway, seems like a good way to get the government to give me $30,000)….pinkboyParticipant@pinkboyJoin Date: 2010Post Count: 49gomez109 wrote:So, if you wanted to make a bit of money from this, couldn't you buy a large block of land now (under the old stamp duty rates) and then commence building 3 townhouses for investment purposes on the land after 1st August, you could claim this 3 times, couldn't you?
(Of course, it does need to make sense in its own right, but given I was thinking about doing this construction anyway, seems like a good way to get the government to give me $30,000)….
I was going to ask a similar question. I have recently settled on a large block and have chosen a builder etc and currently putting together all the required information for a Dual Occupancy DA. On August 1st we are going to sign the building contract for the first dwelling only, and then submit the DA on the 2nd of August. This will (in effect) stagger the build (approx 60 days) and we will then sign up on the second dwelling, thus hopefully getting the $10k grant twice. If its not possible for the second $10k, at least the first one will be a bonus (but the 2nd one would be icing on the cake). I cant find the fine print to see if this is possible, but might make a few calls in the next few days to see what the deal is, unless someone can confirm/deny?
pinkboyInvestwellParticipant@investwellJoin Date: 2010Post Count: 13
Smoke and mirrors people.
Here’s $10,000 in one hand for building brand new house and land in QLD but don’t watch what the other hand is doing… Taking the xtra 2% of every other transaction.
Convenient dont you think that 6 months is about the time that Anna Bligh needs for people to calm down and then once the “gift” is over the QLD government will continue to take 2% for many many years.
Time to remove Anne Bligh quickly because all it will do is help builders for a very short time but stifle the rest of the market for a long time.
Just a thought but seem like a magicians trick if you ask me
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