Tax Breaks of Buying a New Home or a House and Land Package

When buying a house and land package in the Perth area or any part of WA, stamp duty only has to be paid on the land and not the building. This can save you a lot of money on its own. But if you are a first home buyer or an investor, you can save even more money.

Tax Benefits for First Home Buyers

The first benefit, even though it isn’t a tax benefit, is the First Home Owner Grant (FHOG). It pays you $10,000 to help buy your first home if you are a first home buyer and you buy a new home. You will need to keep the total value of your home under $750,000 in the Perth area but that is easily done at our prices.

The next benefit is the First Home Owner Rate of Duty (FHOR). To get the FHOR, you have to be eligible for the FHOG. If you purchase a house and land package or just purchase the land and build on your own, you don’t have to pay any stamp duty on the first $300,000. A large number of our lots are kept under $300,000 for that reason.

The FHOR extends to $400,000, but if your home is between $300,000 and $400,000, you have to pay $13.01 for every $100 by which the land exceeds $300,000.

Tax Benefits for Property Investors

If the intended government changes to negative gearing go through, in 2017 you will only be able to use negative gearing on new homes. This is designed to stimulate the economy and grow the housing supply.

However, property investors can take depreciation costs on a new home. They can depreciate such assets as carpeting, appliances, blinds, heating and air conditioning. This is a huge asset for any property investor.

Call Origin Projects Today

Whether you are a property investor, a first home buyer or just a family looking for a great place to live at a reasonable price, call Origin Projects today: (08) 6500 448