Here are some of the Frequently Asked Questions(FAQs) in Conveyancing

+ What is residential property?

Residential property is land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way.

This means the land must have a completed home that you can lawfully live in at the time of the transfer. If the land is a mixed-use property (e.g. a milk bar and house), then the primary use must be residential.

+ What is a new home?

A 'new home' includes a newly built home and a land and building package. To be considered a new home, the home cannot have been previously sold or occupied as a place of residence or used for short term accommodation.

+ What is the First Homes?

If you are buying a new first home, buying an existing property that is for sale as a residential premises for the first time, or building a first home, you may be eligible for one or more of the following:

• A one-off grant (FHOG) of $10,000 for new first homes ($20,000 in regional Victoria if the contract was entered into before 1 July 2021) for homes valued at $750,000 or less.
• A first home buyer duty exemption for new homes valued up to $600,000 or a first home buyer concession for homes value from $600,001 to $750,000 if you enter into your contract on or after 1 July 2017.
• A first-home buyer duty reduction of up to 50% for homes valued at $600,000 or less if you entered into your contract before 1 July 2017.
• A PPR concession for homes valued at $550,000 or less.
• An off-the-plan concession.

A new home can be a house, townhouse, apartment, unit or similar, but must be a property that is being sold for the first time as a residential premises.

+ What is your Principal Place of Residence(PPR)?

If you own, either by yourself or with someone else, the home you live in, this is called your principal place of residence (PPR).

To satisfy some eligibility requirements for concessions and/or benefits available to homebuyers, you must live in your property as your PPR for at least a year. Generally, you must start living in the property within 12 months of settlement or completion of construction.

Livable Conveyancing can help you extend the start of your 12-month period by requesting in writing. Contact us now for more details.

+ What is Buying Off-the-Plan Property?

Buying a house or unit before the building works have been completed is known as buying off-the-plan.

In some cases, construction may not have started while in others it may only be partially built. You may be able to see the design of the building and sketches of its final appearance in advertising material.

+ What is Investment properties and holiday homes?

Buying a property that you do not use as your principal place of residence, for example a holiday home or investment property, will attract duty.

The off-the-plan concession is not available for properties you do not use as your principal place of residence if the contract is signed on or after 1 July 2017.

As with buying a home to live in, once you own the property (investment or holiday home), you may have to pay other taxes or levies.

+ First home owner grant (FHOG)

If you are buying or building a new home, you may be eligible for the FHOG ($10,000) if you signed your contract on or after 1 July 2013.

Your new home must be valued at $750,000 or less. The property must not have been previously sold as a place of residence, occupied as a home, or used for the provision of short-term accommodation, such as Airbnb. This means the first sale of a property will not be a new home if the person who built it lived in it or leased it out or used it for short-term accommodation. A new home can be a home that is substantially renovated and a home built to replace demolished premises.

You’re not eligible for the FHOG if you or your spouse/partner have already:

• Received the FHOG in Australia.
• Owned a home or other residential property in Australia, either jointly or separately, prior to 1 July 2000.
• Lived in a home in Australia which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months.

However, You may still be eligible for the FHOG if you or your spouse/partner purchased property on or after 1 July 2000 and have not lived there as your home.

+ First home buyer duty exemption, concession or reduction

The first home buyer duty exemption or concession may be available if:

• You enter into a contract of sale to buy your first home on or after 1 July 2017.

• Your home has a dutiable value of:

  • $600,000 or less to receive the first home buyer duty exemption,
  • $600,001 to $750,000 to receive the first home buyer duty concession.

The exemption or concession is only available to you once. If you or your partner has received the benefit of this exemption or concession previously, you cannot receive it again. If you are buying a property with a foreign purchaser, special rules may apply.

+ Off-the-plan concession

An off-the-plan concession is available to eligible buyers of a land and building package, or a refurbished lot. For contracts signed on or after 1 July 2017, the concession is only available for the purchase of a home. The transfer must also qualify for the PPR concession or the first-home buyer duty exemption/concession, which impose a 12-month residence requirement and other thresholds. Failing to meet the residence requirement will result in the transfer being reassessed and the concession removed.

For contracts entered into on or after 1 July 2021 and on or before 30 June 2023, the PPR concession or the first home buyer duty exemption or concession thresholds do not apply. If the value of your home is $1,000,000 or below after applying the off-the-plan concession, you will be charged duty on the lower value provided you meet all the eligibility requirements, other than the $550,000 threshold, for the PPR concession.

+ Pensioner concession

If you are an eligible pensioner, you may be entitled to a once-only:

• exemption from duty when you buy a home valued at $330,000 or less, or
• concession from duty when you buy a home valued from $330,001 to $750,000.

If you are buying your first home, you may also be entitled to:

• A first-home buyer duty reduction if you signed the contract for your purchase before 1 July 2017.
• The first-home owner duty exemption or concession if you signed the contract for your purchase on or after 1 July 2017.
• The First Home Owner Grant regardless of the date you signed your contract.

However, you can only receive the pensioner duty exemption/concession or the duty benefits available to first home buyers in respect of the same transaction. You cannot get both. You must choose to receive one or the other. Whichever you choose, you may still be eligible for the first home owner grant if you are buying your first home.

+ Principal place of residence (PPR) concession

You may be entitled to a concession from duty when you buy a property that you intend to live in as your home for a continuous period of 12 months, within 12 months of settlement.

This concession is available to all home buyers (not just first home owners) whose property is valued up to $550,000 and who:

• start using the property as their PPR within 12 months of becoming entitled to possession of the property (which usually occurs at settlement), and
• live in the property for a continuous period of at least 12 months.

If you buy the property with others, at least one of you must satisfy these requirements. It is not necessary, however, for the same purchaser to occupy the home for the entire 12 months.

+ Young farmer’s exemption/concession

Eligible farmers aged under 35 may receive assistance when buying their first farmland. The extent of assistance depends on the date the farmland is transferred.

• A full exemption from duty is available on farmland valued at no more than $600,000.
• A concession from duty is available for farmland valued from $600,001 and $750,000.

You must choose between this exemption or concession or the PPR concession, whichever you calculate is worth more to you.