Vacant Land Buyer asks…

Can I claim a stamp duty concession of the purchase of vacant land?

Matthew says…

There is lot of confusion about stamp duty (or transfer duty) when buying vacant land. First home owners can claim a concession on transfer duty when you buy vacant land. But you can’t claim claim a concession if you have owned property before, even outside of Australia.

The transfer duty concession for first home buyers of vacant land has rules that must be strictly followed if you are to claim the concession. Essentially:

1. the buyer must complete construction of the residence on the property in the two years after settlement; and
2. the buyer must then occupy the property as their principal place of residence for 12 months continuously.

Their appears to be a number of real estate agents advising potential buyers that transfer duty concessions apply to anyone who intends to build and live on the land regardless of whether they have owned land before. Be very careful about these claims. Transfer duty can be very expensive and failing to account for it when buying property could be catastrophic. Always consult your lawyer before signing a contract for the purchase or the sale of land..