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PPR and FHOG conflict?

Discussion in 'Real Estate' started by MAX30, 13th Apr, 2010.

  1. MAX30

    MAX30 New Member

    Joined:
    13th Apr, 2010
    Posts:
    4
    Location:
    Melbourne, Victoria
    I have just bought a new property the contract date of this property was 21/12/2009. I live in the property and have received the FHOG totalling $25K
    At the time of contract signing the house was 70% complete.

    The question is when calculating the stamp duty am I eligible for both reductions of PPR and off the plan?

    I have been told that receiving the FHOG amount that I did might some how include the PPR discount?

    From what I understand this is an old rule that does not apply with this situation.

    Please help thank you.
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    My understanding is the the state based PPR concession has nothing to do with the FHOG received. There was a short period between 2007 and May 2008 sometime that you could elect one but not both but that no longer applies.

    I don't know the interaction of OTP calculation of stamp duty and the PPR concession, it may depend on definition of whether the building is ready for occupancy.

    A conveyancer or solicitor can better advise on this.

    I would be interest in the outcome if you can let me know.
    Greg
     
  3. MAX30

    MAX30 New Member

    Joined:
    13th Apr, 2010
    Posts:
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    Location:
    Melbourne, Victoria
    I have a solicitor looking into the matter at the moment it looks like I should be eligible for FHOG + FHOG bonus as well as a concession on the stamp duty for PPR and Off the plan discount.

    It seems that my bank didn't bother to look into any of this and they just decided to pay (with my money) the maximum potential stamp duty without any concessions, even though they were aware of the situation from the settlement, if not before.
     
  4. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Max30,
    Welcome to the world of banking.
    Banks exist to make money for shareholders and generate bonuses for managers & sometimes staff through cross sell incentives.
    They see it as a customers role to get it right and they just process paperwork.
    Purchasing a home or IP is a large transaction and I highly recommend to clients that they use professionals to assist. That said, they need to be experienced and competent in property. I despair about the amount of money that people pay unnecessarily in taxes, stamp duty or income tax because their so called professionals just do not follow through or bother.
    Well done for getting this sorted.
    Greg
     
  5. MAX30

    MAX30 New Member

    Joined:
    13th Apr, 2010
    Posts:
    4
    Location:
    Melbourne, Victoria
    Chased down some answers finally looks like the bank didn't do their job properly they decided to pay too much stamp duty and didn't submit documents they were given, only found this out by having a lawyer chase down the issue on my behalf. anyway money is being refunded,, just makes you think what happens to other people who don't chase it down?:eek: