lesleys

We're subject to FIRB restrictions because we have temporary residence visas. We thought that one of the rules was that the biggest block we could buy was 5 acres or 2 hectares. Not being sure which it was I've trawled through the FIRB website but can't find any reference to any limit at all. I've emailed them but haven't had a reply. Does any one know if the rules have changed, or is it 5 acres or 2 hectares?

Lesley

ProofReader

Firstly, five acres and 2 hectares are almost the same in area (not sure if you realised that, your question could be read two ways!)

To the best of my knowledge, there's no restriction contained in the Act in relation to the area of the land to be acquired. Suggest you have a read of it to satisfy yourself: http://scaleplus.law.gov.au/html/pasteact/1/536/top.htm

MrsDagboy

Hi Lesley.

Maybe you are confusing the FIRB info with that of Capital Gains Tax? That has a ruling about land being less than 2 hectares. I might be wrong, but I thought that there may also be something mentioned in regard to Stamp Duty as well. Dont know of any restrictions to do with FIRB though.

ProofReader

Once again, stamp duty is a state run thing, so it depends on the particular state in which you are buying. In Queensland, you may be eligible for a 'prinicipal place of residence' discount which applies to the house and 'curtilage' (area immediately surrounding the house) of up to 10,000 square metres of you main home (not investment properties). Any area over that attracts full stamp duty. There are various stamp duty calculators at the Office of State Revenue's website here. If you've never owned any property before anywhere, you may also be granted the first home owners extra discount.

I can't comment on tax issues, I never was any good at that, but I've worked with various laws affecting property (except taxation) for many, many years.

DavidT

Hey guys & Mrs DB, how are ya? Do you know, didin't find it when looking, if you have to pay this on a freehold business property. Seen something interesting, just looking for the next thing to bite me on the bum.

ProofReader

Pay what? I'm not sure exactly what you're asking here, David. You will have to pay stamp duty on a commercial freehold property if you buy it and you will have stamp duty to pay on a business contract (for buying the actual business). If you are not buying the property but leasing it, that also attracts stamp duty, but the largest lump sum is on purchase of property and certain other assets.

lesleys

Thanks Mrs D and PR.

I finally made contact with the FIRB today and there aren't any restrictions on size of block. I've spent hours trying to find out where we got the original 5 acre idea but can't find it! We were both convinced this was the rule so someone must have impressed it on us during our visa application time; you can be very impressionable at that stage.

House viewing starts tomorrow. It'll be much more fun than house selling in England.

Lesley

ProofReader

Good luck with the house hunting, Lesley! I hope you find your 'dream' property!!