First Home buyer Transfer Duty News

More Good News on Affordability for First Home Buyers

The Queensland Government has recently implemented the Help to Buy scheme, the first of all the States, which will make it easier for up to 40,000 low and middle income families around Australia to buy a home. 

Previously we wrote about all the First Home Buyer concessions and grants. While there wasn’t a vast array of houses that qualified for the previous stamp duty concession, the recent change has opened things up. The threshold for the first homeowner concession on transfer duty has just been lifted for homes valued from $550,000 to $700,000, phasing out up to values of $800,000. (They call stamp duty ‘transfer duty’ and the threshold means you don’t pay any transfer duty for this purchase if you’re a first home buyer). This will save new home buyers up to a total of $17,300 in duties.

This is great, because you can find many more houses in the $550,000–$800,000 range. For instance, you can buy and build a new 4-bedroom home around Morayfield or Caboolture for around $750,000, and claim both a home buyer concession and first homeowner grant, if eligible. 

Buying land has become easier too, as eligibility for the transfer duty first home vacant land concession will be extended to vacant land with a dutiable value up to $500,000, increased from $400,000 currently, saving up to a potential $10,000. (See our Morayfield Landing lots for great examples).

First Home Buyers Concession – Eligibility Applies

There are lots of rules that apply to these concessions; for instance, you would need to move into the home (and live there) within one year of settlement, if claiming. And with the First Home Owners Grant, a generous $30,000 for those building/buying a brand new home, you need to move in within one year of the final inspection date for new buildings, or within one year of the title registration date. 

The State Government estimates that the First Homeowners Transfer Concession will help up to 10,000 buyers per year to buy their first home. Steven Miles said, “By increasing the eligibility threshold, we are giving aspiring homeowners a fairer go. I want young Queenslanders to have more opportunity than their parents, including the opportunity to own their own place. I want that for my kids too.”

To offset the demand from increased concession thresholds, the Labor Government has increased the foreign investor land tax surcharge to 3 per cent. 

If you’ve got any questions on how to find your first home and capitalise on this first homeowner transfer duty concession, please get in touch. If you have a question on what price range would be appropriate for your budget, Shane Harding, finance broker at Red Connect, can help you.