The scrapping of the stamp duty concession for purchasers trading up to an existing home has widely criticised by the real estate industry and our opinion is that given the increasingly softening property market it is difficult to support.

A positive measure is the new $10,000.00 ‘building boost’ grant for purchases of new homes. Criticisms of the grant include the fact that it applies to transactions during a six (6) month period only from 1 August 2011 and 31 January 2012.

Queensland Building Boost Grant

Some of the key points are:-

Relates to transactions entered into between 1 August 2011 and 31 January 2012 (inclusive) being:

• A contract to purchase a new home in Queensland.
• A house and land package Contract/Building Contract.
• The building of a home by an owner builder where the works start during those dates.
• The amount payable is $10,000.00.
• The value of the home must be less than 600,000.00.
• Where a Building Contract is entered into then:
• For a land and house package the building work must commence within 26 weeks of the date of the Contract and be completed within 18 months of the work starting.
• For an owner builder, the building work must be completed within 18 months of the work starting.
• For an off the plan Contract, the building work must be completed by 31 July 2013.
• The Buyer does not have to reside in the home.

The grant applies to all persons, corporations and trustees. In other words it is not restricted to first home buyers or owner occupiers. Companies and trusts can claim.
A person may obtain more than one grant but only one grant will be made per property. In other words if one person contracts to construct 6 new homes that person can attract 6 grants, each of $10,000.00.

First Home Owners Grant

• The FHOG remains and is payable to eligible applicants in addition to the Queensland Building Boost Grant ($10,000.00).
• The conditions for FHOG remain the same (i.e. residence requirements and applicability to properties less than $750,000.00).
• A person can be eligible and receive both grants, and if so received $17,000.00.

Transfer Duty

The Queensland Government claims that the Grant is being funded by the removal of concessional stamp duty for the acquisition of a principal place of residence. In other words, except in relation to first home buyers, buyers of properties, be it for a principal place of residence or for investment, will pay the same rate of stamp duty.

Concessional rates of stamp duty for purchasers of owner occupied properties will close 31 July 2011. In other words, the concessions will only apply to Contracts entered into by 31 July 2011.

Furthermore, the Government has altered the threshold rates for property values between $5,000.00 and 980,000.00. However, transfer duty for properties more than $980,000.00 in value will not alter ($37,125.00) other than the loss of concessional rates for principal place of residence.

The first home vacant land concession now applies to first home vacant land under $260,000.00 in value (previously $255,000.00).

The first home concession rates now apply to properties less than $510,000.00 in value, an increase of $5,000.00.

At Jocumsen Body Corporate the following procedure is applied when levies are not received by the due date;

15 days after due date a reminder notice is sent
30 days after due date a second reminder is sent
45 days after due date (and following consultation with the committee) the matter is referred to debt collection

In Australia the debt collection process may, in a worst case, include the sale of a property to recoup unpaid levies.

Gratefully, none of the bodies corporate managed by Jocumsen Body Corporate have been involved in the forced sale of a property.

In the theme of acknowledging that there is always someone worse off than you we thought we should share the system of recovering unpaid levies as is currently operating in the United States;

The recession of the US property market seems endless with uncountable stories of home owners having to sell their places for a fraction of the initial value. If you were rubbing your hands and considering to buy property in the US you better do your homework and find out about their levy collecting procedures.

According to the US based NPR website, a Home Owners Association (HOA) has the power to foreclose a member‘s house without any judicial procedure n order to collect special assessments, fees and fines, or otherwise place an enforceable lien on the property which, upon the property’s sale, allows the HOA to collect otherwise unpaid assessments.

The so called non judicial foreclosure‘ is legal in 33 states meaning a house can be sold on the courthouse steps with no judge or arbitrator involved even if only a few hundred dollars are outstanding. It seems Texas may be one of the states you do not want to miss payments or accrue HOA fines as their laws allow the Home Owners Association to file assessment liens on properties who have failed to pay their assessments, and they also allow foreclosure on those liens.

Within only 27 days a Texan family lost everything, NPR reports. While the husband was serving in
Iraq, his wife missed two months of paying levies amounting to only US$800 which instigated the Home Owners Association to apply rigorous methods. The US$300,000 house legally sold for only US$3500 which settled the overdue account with the Home Owners Association and legal fees but left the family homeless.
The new owner sold it for US$135,000 which the family can now only fight in court because of the overseas military appointment of the father. Under ―normal circumstances there are no legal rights for a court case.

Source: http://www.npr.org/templates/story/story.php?storyId=128078864&ps=cprs;

This spacious 3 bedroom townhouse features built in wardrobes, 2 toilets, ceiling fans in all bedrooms, large, air conditioned, tiled lounge/dining, dishwasher, grassed courtyard, single lock up garage. Secure gated complex with communal swimming pool and tennis court. All this and is located walking distance to Strathpine train station and all amenities.

Available: Thursday 18-08-11