– QLD First Home Buyers Stamp Duty Rebate – 

A guide to making sure you maximise your entitlement and how to apply:

The QLD Government helps out first home buyers to the tune of $8,750 as a Stamp Duty Rebate, when they buy a home.

Q: What is the First Home Buyers Stamp Duty Rebate?

Stamp duty can be a substantial additional cost of buying a property, so the QLD government has decided to help first home buyers out by giving them a rebate on all or part of the cost of the stamp duty.

Stamp duty is a tax paid by the buyer of a property, when buying an established home or vacant land.

It’s similar to the vehicle stamp duty you pay when registering / transferring the registration when buying a car.

Also check out the QLD First Home Buyers Grant, where you can also claim $20,000 if you’re building a new home or buying off the plan.

How do I maximise my entitlement to the QLD First Home Buyers Stamp Duty Rebate?

The maximum QLD First Home Buyers Stamp Duty Rebate you are entitled to is $8,750.

You can claim this maximum rebate if you’re purchasing an established dwelling (has been lived in before) for less than $500,000.

The other option is to buy vacant land for less than $250,000 to receicve the full stamp duty rebate and then build a new home

So, in other words, buy a house for less than $500,000 to receive your full rebate.

Also consider buying a new home or building

How much do I get from the First Home Buyers Stamp Duty Rebate

The maximum QLD First Home Buyers Stamp Duty Rebate you are entitled to is $8,750 and it increases the more you spend:

For example: on a $350,000 purchase the stamp duty would have been $3,500 (so you’re saving $3,500);

On a $400,000 purchase the stamp duty increases to $5,250 (so you’re saving $5,250);

On a $450,000 purchase the stamp duty increases to $7,000 (so you’re saving $7,000);

You can claim the maximum rebate if your house or vacant land purchase is less than $500,000.

The amount of money you get back differs by if you are buying an existing dwelling (one that has been lived in before) or you are buying vacant land.

Here are the details:

If you’re buying an existing dwelling and:

• Purchase price is up to $500,000 –  you’ll get the maximum full rebate of $8,750.  You won’t need to pay any stamp duty (on a $500,000 purchase this is saving of $8,750).

• Purchase price is between $500,000 to $550,000 – you will pay some stamp duty but the reduction in costs is at a reduced rate.

For example, if you’re buying a house valued at:

~$505,000 :  the stamp duty you would normally pay is $8,925. With the rebate you would only pay $1,050 (a saving of $7,875);

~$525 000 :the stamp duty you would normally pay is $9,625. With the rebate you would only pay $5,250 (a saving of $4,375);

~$545,000 :the stamp duty you would normally pay is $10,375. With the rebate you would pay $9,500 (a saving of $875).

• Spending $550,000 or more – once the purchase price is $550,000 or higher, the first home buyer rebate cuts out so you’ll be charged the same stamp duty as you would if you were buying a home as a normal owner occupier.

For example,  if you’re buying a house valued at:

~ $550,000 ; you would pay $10,600 in stamp duty.

~ $650,000 ; you would pay $15,100 and there’s no reduction in stamp duty.

If you’re buying vacant land the stamp duty rebate is different and applies as follows:

• Purchase price of up to $250,000 – the full rebate applies and you won’t be charged the stamp duty providing your application is approved (on a land purchase of $250,000 this is and immediate saving of $7,175).
• Spending more than $250,000 – there is reduced rebate so you will pay some stamp duty. On a land purchase of $260,000 this will be $825 (a saving of $6,700), on a $300,000 land purchase it will increase to $4,125 (a saving of $4,800) and then at $400,000 or more you pay the full stamp duty applicable.

If you are building a home, you’ll only need to consider the stamp duty on the land purchase as stamp duty isn’t payable on the value of the building contract.

What’s the difference between the Stamp Duty Rebate and the First Home Buyers Grant?

As a first home buyer, the QLD government offers two different grants or rebates which you may be entitled to claim, up to the value of $28,750 in total:

1. The First Home Buyers Grant (previously called the Great Start Grant) is a $20,000 grant for those who are building a new home or buying off the plan;
2. The Stamp Duty Rebate, covered in this post, which is up to $8,750 if you are buying an established home valued for under $500,000 or land for under $250,000.

What is the eligibility criteria to get the QLD First Home Buyers Stamp Duty Rebate?

1. No previous ownership of residential land / property

• Have never held an interest in residential land anywhere in the world
• Have never claimed the first home vacant land concession
•  You can’t have owned or part owned any property in the past.

If you are buying with a partner who has owned property before, only the person who is the first home buyer can claim their portion of the rebate. If you own the property 50/50, the you are entitled to 50% of the rebate.

2. Live in the property for at least 12 months

You’ll need to live in the property for a period of at least 12 consecutive months, AND commencing within 12 months of the purchase. If you don’t you’ll need to be pay back either part or all of your rebate.

3.  Age and Citizenship  / residency

You must be at least 18 years old at the date of the purchase as well as a permanent resident in Australia or an Australian citizen.

When do you get paid the QLD First Home Buyers Stamp Duty Rebate?

The stamp duty rebate is calculated just before settlement by your solicitor or conveyancer (the settlement date is the date on which the property officially becomes yours and you pick up the key).

Your solicitor or conveyancer calculates the costs of buying which includes stamp duty, rates etc, so your rebate is taken into account here.

If you do need to pay stamp duty,  it is your solicitors responsibility to notify you of this and the amount you need to pay. Your solicitor/conveyancer should tell you at least a few days prior to settlement what you owe, so you have the funds in your account the day before settlement.

Read more here on the steps to build or buy a home to understand the process to get to settlement.

How to apply or claim your QLD First Home Buyers Stamp Duty Rebate

 Your solicitor or conveyancer will complete these forms with you.

You can view these here.

NEXT  – Check out 13 steps to build  or the 11 steps to buy your first home.

If you’re interested in getting a home loan or getting in touch for some advice – I’m happy to be your sounding board – you can email me now or call 07 3122 3628 Monday to Friday for a chat.

from Mortgage Broker http://bit.ly/2oGfHOZ