Jack and Jill currently live in Sydney. They have adult children and grandkids living in Coffs Harbour. They are looking to move to the mid north coast to be closer to their family and to enjoy one of the best climates in the world.
Jack and Jill have found a block of land in the Coffs Harbour area. The block is part of a subdivision although the plan of subdivision is yet to be registered. They are able to exchange contracts, securing the block, with settlement to occur 14 days after the plan is registered. They are advised by the vendor’s solicitor that settlement is likely to occur within a few months. Their solicitor negotiates a 5% deposit which is payable on exchange.
Their solicitor identifies that the block is zoned as bush fire prone land, Koala habitat and subject to Acid Sulphate Soils. These issues are commonplace in the Coffs Harbour area, and after a trip to council, Jack and Jill are satisfied that they can build what they want within their budget.
Their solicitor also advises that they are entitled to a $7,000 Regional Relocation Grant provided they commence building within 6 months of settlement and commence living on the property within 12 months of settlement. Jack and Jill have a limited budget and these additional funds will greatly assist them with the costs of relocation.
Jack and Jill put their Sydney home on the market after their solicitor prepares a listing contract. They have the option of delaying settlement of the sale until the Coffs Harbour build is complete, or selling the property earlier and staying with their children in Coffs Harbour. As long as they sell the property within 12 months of settlement of the new purchase, they will receive the grant.
Their solicitor advises them that they are also entitled to a $5,000 New Home Grant. The grant can be used to reduce the stamp duty that would be payable and if the block costs less than $185,000, the grant will eliminate stamp duty entirely.
This column cannot be relied upon as legal advice.
