The Pros and Cons of Buying a Property Off the Plan
September 3, 2019
Our fees remain unchanged in 2020-21
July 3, 2020
The Duties Act regards you as a first home buyer if:
- You have never owned a residential property in Australia, or you have purchased a residential property in Australia on or after 1 July 2000 but have not lived in it for a continuous period of 6 months or more.
- You don’t have a spouse or domestic partner, or if you do, they also satisfy criteria 1 above.
- Either you or your spouse or domestic partner are an Australian citizen or permanent resident.
First home buyers are exempt from stamp duty for purchases of residential property with a dutiable value of up to $600,000, and receive a stamp duty concession for purchases with a dutiable value in the range $600,001 to $750,000, provided that in either case the property will be used as their principal place of residence for a period of 12 months commencing within 12 months of settlement.
Please note that construction costs incurred after the Day of Sale are not dutiable for a principal residence, so that it is possible to buy a residence (usually off the plan) for more than $600,000 whose construction is either not commenced or complete, and its lower dutiable value enables a first home buyer to receive the stamp duty exemption or concession.
If the home that you are buying is new, to be constructed or off the plan, and its total cost is $750,000 or less, you would also be eligible for the First Home Owner Grant of $10,000 ($20,000 for properties in regional Victoria).
If you are looking for a reliable Melbourne conveyancing company, contact Glenferrie Conveyancing at Northcote on 03 9815 2351 for more information.
