daddyoconnor

Hi

I just wanted to share a recent experience with anyone planning to buy thier first home out here.........Maybe we didnt do enough research or we were very naive however, we weren't aware of Transfer Duty (or stamp duty).

We recently signed a contract with our estate agents for a property. At the time of signing she informed us that we didnt have to pay Transfer Duty ("because the property was on sale for under $500,000") and we were entitled to a First Time Home Buyers Grant. (We havent owned property in Australia, but have owned a home in UK).

However, this advice was totally incorrect. Yes we are entitled to the First Time Home Buyers which is $7500. However not the exemption from Transfer Duty because "we have owned (or had interest in) property or land anywhere in the world". Therefore we do not get the Nil Concession on the Transfer Duty from the Queensland Government - so if you plan to purchase a property for the sum of $465,000 you will need to pay a Transfer Duty of $14,000 approx - taking the price up to $480,000 almost.

Anyway I wanted to bring it up cause I see lots of information about the FTHB but not much info about this Transfer Duty and wanted to make others aware and not have the shock and bad experience we have just had.

Also just to point out we are in Queensland - I think different States have different rules around this...... Not sure - but please look into it wherever you are.....

Apart from that small setback, everything is going really well since arriving here in July last year. We found a lovely rental property both myself and my husband managed to secure jobs within the first week of arriving, the children are settled well in schools. Yes it is expensive here, but we try to live within our means. And now trying to save like mad to cover this Transfer Duty.........

bcworld

If yo think that's pricey you should see the stamp duty rates in Victoria!!

Swerv-o

This is correct, in NSW first home buyers could benefit from zero stamp duty provided the property was $500k or under, and they had never had an interest in a property in NSW.

That's all ancient history now though, as the state government has recently killed off most of the stamp duty concessions for first home buyers, though I think that some still exist for off-the-plan-homes.


S

KJCherokee

Does anyone remember that when the GST was introduced with all the money going to the states, the states were all supposed to abolish stamp duty as an offset? Wonder why that never happened?

Craig Vaughan

Yeah, thats right - those sneaky little words "or anywhere else in the world".

I always tell my clients about this little thing in the FHB stamp duty form and tell them the consequences of ticking yes or no.

You guys are lucky that you had enough money to pay for the stamp duty - others would not have and may lose all their deposit etc. Concessions still available in NSW for new homes, Western Australia up to 500k and NT. Every other state has full stamp duty payable (subject to a tiny discount in victoria which is hardly worth mentioning).

rossi6

How deep do they check on whether you have had a property previously overseas ?

koalakim

See the other thread, it would seem Big Brother is watching!

I thought in QLD you didn't even get the FTHBG if you'd owned property elsewhere in the world.

Anyway, welcome to Oz where everything is different in every state, confused you will be!

Elizabeth31

I am correct in thinking then that in Queensland the stamp duty is 3% of the purchase price of the property?

daddyoconnor

Hi yeh think you do (well solicitor seems to think we are entitled to it). The FTHBG applies if you have never owned a property in Australia only

rossi6

Which thread is that Koalakim ?

chris955

From what i can gather it is $1500 plus 3.5% for an average house. Wow.

koalakim

I knew someone would ask that! Couldn't think of it at the time of posting but it's the one about Retirement in Australia, just a few comments from the others who it would seem Centrelink knows their every move!

jad n rich

Campbell Newman, one of his election promises was to reduce the Stamp Duty by $7000 for purchase of your own home in QLD.

Of course it will be very interesting to see how many of the election promises will be kept.

isgraham

On the up side it shows an estate agent doing a great job for the vendor in a depressed market. Now you just have to sit back and watch the price drop just like everywhere else in the world.

chris955

Im not sure how they are going to afford to be able to lose that aort of money. Its amazing to think they are talking about REDUCING it by 7k