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stamp duty questions for QLD

Discussion in 'General Investing Discussion' started by nathan.williams, 1st Jul, 2009.

  1. nathan.williams

    nathan.williams New Member

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    Location:
    Nhulunbuy NT
    HI all we live and work in the NT we are looking at getting into the investment market in Cairns, we have just been told that the stamp duty is nearly 3 times more for investment rather than if we lived in it. what would be the ramifications if we were to say we are going to live in it then in 3 months time rented it out??? any information or advice would be greatly appreciated
     
  2. FinSpec

    FinSpec Member

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    Are you actually going to move into the property in 3 months time or are you just saying that you will?
     
  3. nathan.williams

    nathan.williams New Member

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  4. FinSpec

    FinSpec Member

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    Location:
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    Firstly, to get an idea of the stamp duty, try this link out - I use it heaps and find it easy: Home Funding Solutions - Stamp Duty Calculator Many sites have similar calculators.

    Now, there are some provisions for being able to do one thing and say another, however you should not treat it lightly - there are also some decent penalties. You should not be claiming that you're going to be living in the property if you're not going to. I know it's a bit square, but rules are rules. You can bend them, go around them - you just don't break them.

    Try this site for more information: Home transfer duty concession rates—Office of State Revenue, Qld it gives you an idea of how and when you can get the lower stamp duty.
     
  5. Superman

    Superman Well-Known Member

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    Gold Coast, QLD
    From a practical perspective, I know of people who have done something similar - apparently unintentionally (they simply changed their mind) and were caught out and had to pay the additional stamp duty more than 2 years down the track.

    This happened becuase the ATO conducts something called data-matching.

    They have access to information from other government departments and agencies (including the QLD Office of State Revenue) and also share information back to those organisations.

    So for example if you claimed and paid the concessional (lower) duty amount and then lodged a tax return with a rental property schedule showing you rented it out that first year and didn't actually live in it within the first 12 months, the QLD Office of State Revenue will come back and reassess the duty and can even fine / penalise you. This is what happened to the people I know.

    Just be happy that Queenslands stamp duty is lower than most of the other states.
     
  6. jrc

    jrc Active Member

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    Location:
    Western, NSW
    Simple solution. Buy in the ACT. Land is leasehold there so the stamp duty is tax deductible on investment property.

    Is Cairns going to be a good investment with Hedley construction put in receivership yesterday.
     
  7. TryHard

    TryHard Well-Known Member

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    Think Hedley's receivership is less to do with the Cairns property market and more to do with their business :

    The fall of Tom Hedley - Business news, business advice and information for Australian SMEs | SmartCompany

    (says : 'The fall in the sharemarket appears to be behind Hedley's collapse. Receiver Robert Hutson said falling share prices had triggered massive margin calls on Hedley's stake in HLGPF.')

    The receiver claims they will complete the 3 major construction projects and won't dump stock on the market.

    IMO there are some great buys in TNQ, but anyone who has been there knows it is a volatile market and heavily reliant on tourism. As it doesn't have the same characteristics as a major southern capital city, I think most look more for income than growth overall. Safest to make sure any IP is better than average and will be in demand from tourism workers and locals, unless you can ride out the current tourist slump, and any PPOR takes advantage of the lifestyle (like being on one of the northern beaches) rather than living in the middle of the city which doesn't offer the same environment. Having said that local unemployment will be pretty bad at the moment and likely continue for some time. Just a thought FWIW.
     
    Last edited by a moderator: 3rd Jul, 2009