rudra_rParticipant@rudra_rJoin Date: 2009Post Count: 61
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.
RudraJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,065
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.
Jamierudra_rParticipant@rudra_rJoin Date: 2009Post Count: 61
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.
RudraiBuyNewMember@ibuynewJoin Date: 2013Post Count: 5wilko1Participant@wilko1Join Date: 2010Post Count: 510
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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