For investors, owner-occupiers, and first-home buyers alike, choosing what sort of property to buy can prove challenging. Should one look at established properties, house and land packages, apartments, off-the-plan, or other options?
Apart from the obvious taxation benefits, legislative changes in Victoria that will take effect with the start of the financial year really make it a “no-brainer” to examine off-the-plan property [in Victoria] right now, says Marion Mays, founder of the Thalia Stanley Group.
Up until the last day of June, the purchase of off-the-plan property does not require the normally applicable stamp duty charges, which can equate to anywhere between $18,970 on a $450,000 purchase to $34,000 on a $650,000 purchase.
With the new financial year kicking in, the full stamp duty is payable, an amount that scales up with the purchase price and is payable upon purchase of the property. In other words, buyers need to have more savings in order to proceed with the transaction.
“Not having to pay stamp duty on an off-the-plan property has made it possible for a number of our clients to get into the market considerably sooner,” Mays said.
The Andrews Labor government has amended the usual regulation in order to stimulate the market. However, come June 30, this waver will expire.
“For those already looking at getting into the market or perhaps setting out on their first investment property, this makes it a real time-is-money situation,” she said.
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