Two big Changes

Two changes to property purchases are now in play;

Transfer Duty (Stamp Duty) “Home Concession” relief for home buyers for principle place of residency.

And the removal of the Sustainability Declaration which the Seller had to provide to a prospective buyer.

These announcements are a welcome relief for the Real Estate Industry which has copped a hiding from Government over recent years.

These reforms should be the start of a relief rollout that is long overdue for the Industry.

1. Transfer Duty Changes

From 1 July 2012, the "Home Concession" (also known as the "Principal Place of Residence Concession") rate of transfer duty will be reintroduced. This was abolished in August last year.

Importantly, for Contracts dated on or 1 July 2012, the changes are as follows:

The "home concession" will once again be available to those buying an established home who have owned property before.

This may result in a significant decrease in the amount of transfer duty payable for those buyers. A simple example is as follows:

Home price $500,000--Rate was: $15,525.00-–New Rate: $8,750

For those buying investment property under $980,000, the amount paid may increase under the new rates. A simple example is as follows:

Investment of $500,000-–Rate was:$15,525.00-–New Rate:$15,925.00

Concessions are still available for those buying their first home or those buying vacant land to construct their first home.

Concessions will not be available for contracts made on or after 1 July which effectively replace contracts made before 1 July.

2. Removal of the Sustainability Declaration Requirements

The Act amends the Property Agents and Motor Dealers Act 2000, by removing the requirements to provide a sustainability declaration prior to the sale of residential dwellings.

.