Update on Transfer Duty: First Home Buyers in Brisbane Allowed to Rent Out a Room Under New Queensland Rules
Recent changes to Queensland’s transfer duty laws bring welcome relief for homebuyers, particularly first homebuyers. Effective from 10 September 2024, buyers are now allowed to rent out a room or part of their property without forfeiting their eligibility for the first home or home transfer duty concession—provided they continue to live in the property.
This update is a significant shift from the previous regulations, which restricted buyers from leasing out any part of their property during the first year of ownership. The new rules apply to leases that commence on or after 10 September 2024, offering much-needed flexibility and financial relief to new homeowners.
What This Means for Home Buyers in Queensland
With the new ability to lease out part of their property, buyers can offset the financial burden of homeownership. Rental income from a spare room or additional space can make a significant difference, helping buyers cover mortgage payments and other expenses while still benefiting from the first home and home transfer duty concession.
Buyers must still move into the property and are not able to lease, rent or otherwise grant exclusive possession of all or part of the property before they move in but after the buyer moves in, they can lease, rent or otherwise grant exclusive possession of part of the property, provided the arrangement commences on or after 10 September and the buyer remains living in the property.
The great news is that even if you purchased your house before 10 September 2024, you are able to take advantage of this change.
For example, James purchased his home last year with settlement on 28 August 2024. James moved into the home and in December decided to make a room available in the home for short term stays. Provided James meets the other eligibility requirements James does not need to notify the Queensland Revenue Office of this and will still be entitled to the home concession.
How These Changes Impact Conveyancing and Transfer Duty in Queensland
The updates to the transfer duty rules reflect the Queensland government’s broader strategy to make homeownership more accessible while addressing the challenges of the local rental market. However, navigating these changes requires careful planning and expert advice.
For buyers claiming the first home or home concessions, it’s essential to ensure compliance with the updated rules to retain eligibility for the transfer duty concession. Partnering with an experienced property lawyer who understands these new regulations can make the process smoother and help maximise your financial benefits.
In Summary
- First home buyers and home buyers in Brisbane can now rent out part of their property and still qualify for the transfer duty concession, provided they continue to live in the home and meet the other eligibility requirements.
- The new rules apply to leases commencing on or after 10 September 2024.
- These changes offer financial relief to home buyers while increasing rental options in Queensland’s tight housing market.
Seeking Expert Advice
The property team at NB Lawyers is here to assist with your conveyancing matters and provide tailored advice on transfer duty. Whether you’re considering renting out a room or simply navigating the complexities of purchasing your home, our team can guide you every step of the way.
If you have any questions or require assistance with transfer duty and your conveyancing matter in Queensland, contact the property team at NB Lawyers today at (07) 3876 5111 to schedule a consultation. Our experienced professionals are ready to help you make the most of these new regulations and ensure a seamless property transaction.