Changes to the Stamp Duty laws mean that investors will no longer receive discounts on Stamp Duty. The Victorian Government has recently announced changes to stamp duty. Under the current law, all investors purchasing off the plan properties benefit from stamp duty discounts. However, this will no longer be the case under the new legislation.
Starting from the 1st of July 2017 only buyers who intend to live in the property will benefit from the stamp duty concessions.
Regardless of the impact this will have on demand for off the plan properties, the stamp duty concessions will now be in line with most other Australian states that do not offer stamp duty concessions for investors. This means that on a $450K property, investors will pay $23,328.60 instead of a pro rata amount based on a dutiable portion of the land, usually between $900 and $5 000 depending on the stage of construction. However, the good news for investors, is that Melbourne is still one of the most affordable capital cities with the fastest population growth.
To take advantage of the existing concessions, the process is: Fill out an Expression of Interest (EOI) and pay a deposit of $1-2K depending on the property. This will hold the property for you, while you get your affairs in order. From the EOI a contract is drawn up. As long as this is done by June 30th, you will qualify for the concessions. The contract does not have to be unconditional. As you can imagine, Melbourne property is moving very quickly as interstate and local investors, rush to get into the market before the new laws take place.
You’ve only got 6 weeks to take action!
Contact us on 02 9016 2852 or 0419 999 807. Here are a few of the properties we’ve chosen in suburbs with as little as 1% vacancy rates.