Did you know that there is a loophole across all states, which allows investors who own multiple properties to use government grants for first-home buyers?
The rules show that it does not matter if a person owns many properties. As long as a homeowner has not lived in these properties for over six months, he will be eligible to claim some first-home buyer stamp duty grants and concessions.
Those who own properties in their names and rent a house to live in may be entitled to stamp duty exemption which can save them about $17,000 on a $425,000 home. If the property is newly built, the buyer may claim up to $10,000 from a government grant.
The rules also allow property investors across all states to benefit from a grant, provided they have not lived in their previous investments and have not owned real estate before 1 July 2000.
Investors can use this tactic to get a loan and add another property to their portfolio. Government agencies do not collect data to know whether the grants or stamp duty concessions are given to first-home owners or investors.
First Home Buyers Australia said the grant should be a one-off payment to people and rentvestors should give up their right to the grant.
In Western Australia and the ACT, a property investor can no longer claim entitlements if they’ve lived in a home for over six months and if the property was purchased after 30 June 2004. They should not have lived in a property for any time period if the property was bought between 1 July 2000 and 30 June 2004.
The rules between states and territories differ but many rentvestors would still be eligible. It is important that investors do not benefit from duty stamp exemptions.
Rentvestors and their spouses may be asked for evidence that they had not lived in their properties, including tax returns, utility bills, lease agreements, etc.
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