Kiwipaul

Never been a great believer in building but now the facts seem to agree with me. If you can believe any gov figures that is.
Quote:

FIRST homebuyers are better off purchasing an existing house rather than a house and land package, according to a breakdown of fees and charges.
Once considered the affordable way to achieve the Australian dream, there is a myriad of extra taxes and fees for house and land packages.

Despite a first-homebuyers grant of $7000, Queenslanders are finding it more and more difficult to buy houses as affordability plummets to its lowest point on record.

Based on a median house price of $265,000, a buyer pays $3025 in stamp duty on an existing house.

But on a new house and land package, the buyer pays $13,100 on stamp duty and land tax.

Full Story

dotty

Wonder if the writer of the article could tell where the $265,000 house/ land packages are.

I thought the median house price in Bris was about $300,000 and Sydneys $546,000.

All I know is if there was a $265,000 house and land package around here you'd be trampled in the stampeed to get to it!

pommie bastard

This true as far has it goes if I was leaving the Uk now cashed up I would buy land close as possible to the sea and not build the land values are rising faster than house prices .
Try renting and buy land the cost of keeping land is small and the rewards are great , most coastal land has doubled in Perth over last 3 years no so the housing stock .

willywh3r3

I think you are exagerating. It sounds that you are very happy to see the price keeps going up.

I don't think it sounds good to people who has not bought a house.

Btw, wait a while when the boom crash, it will. It's just a matter of time. And, if we, would be migrant, are willing to wait, we can speed up the bursting process.

My advice, don't buy. Why are afraid of being left behind when history tells us again and again, every boom will be followed by bust. The higher the boom, the greater the bust.

We'll see. Don't let your hard-earned $$ spent on 'house of card'.

pommie bastard

I bought a block 3 years back on Quinns Beach for $93k same block without a home goes for $250k now the profit in land is more than building right now.
Land has sky rocketed and always has in Perth.

Florida_03

Fine, what of CGT?

Investing in a principle residence has many advantages.

pommie bastard

Put a shack on the land call it your home for 6 months and bugger the CGT none to pay.

Florida_03

So which is it?

Buy and avoid CGT, or build and avoid CGT?

pommie bastard

A shed on vacant land can be a home if it has a letter box so figure it for yourself , sit on the block then use it as your home address as do many who use the rentals for 6 months before selling them to aviod CGT.

Florida_03

C'mon Kiwipaul earn your keep.

Only one principle residence allowed? Proof of principle residence required?

I think you can make the dough by building the right type of house, on the right type of land, enjoy living in it, sell it when ready and have it all CGT free.

So building has benefits?

pommie bastard

Seen this scam done more than once , the rental is moved into and the owners house is sold then 6 months later the rental is off loaded.

Kiwipaul

Houses/ land is going to go up here at the moment so it's just personnal choice wether you buy or build. Me I buy existing houses.

Kiwipaul

All this musical chairs achives is profits for the estate agent (commission), government (Stamp duty), solicitors (fees), banks (fees) need I go on. And you get whats left over.

pommie bastard

Well thanks for backing up my buy land and leave the clueless to build , we agree at last.

Kiwipaul

Most of the fees I quoted would apply to vacant land just the same as one with a house on it. At least with a house you can either live in it or rent. Plus new arrivals would get the $7,000 FHOG if they lived in it for 12 months.