Purchasing OTP Townhouse - VIC

Hi all, have a few questions.

This will be our first home.

1. Do we pay full stamp duty upfront, then get concessions at a later time?

2. The big one regarding the OTP stamp duty concession.

Trying to understand from the SRO site:
"We apply two methods for calculating the concession amount to deduct from your contract price, using either the cost of construction or refurbishment which occurs on or after the contract date. This means you pay duty only on the:

Improved value of the land,
Non-deductible costs, and
Completed construction/refurbishment (including GST)"

Can anyone give me a simple answer.

If i'm purchasing an OTP townhouse, agreed price of $650,000, and construction is 40% complete.

How much stamp duty am I up for?

Is it just on the improved value of the land + the construction costs?

Being a block of 7 townhouses, land value would be split between the 7?

Ie. say original value of land $700k, now $800K because of 'improved value' – and $200K of construction completed including GST. Just say $800K/7 = ~$115,000 + $200k = $315,000 stamp duty calculated

3. Any recommendations for conveyancers or lawyers to use? Very new to this process

 

My understanding for stamp duty is it will be part of your land plus 40% of the total construction cost. However I do not buy OTP.

I had a person I used like 5 years ago who were good but they are not the cheapest.

 

I recently sold my townhouses OTP.

This is the basics on how it works.

For our buyers who purchased at different stages of the build we roughly worked out the costs on stamp duty at the time. Improved land is divided by number of townhouses/ size of land component for each townhouse.

Stamp duty - is also dependent on the build/progress payments made to the builder at the time of sale, obviously deduction is greater if you jump in at the early stages.

Your lawyer can work out the final figure.

Hope this makes some sort of sense

 

So roughly it is made of two components:

1. Improved value of land / proportion property that is going to be purchased utilises
2. Cost price + GST of construction that have been made already

Yeah?

And to confirm. You pay stamp duty on settlement, and also receive concessions and FHOG all in one go?

Thank you!

 

@Jonno Yeo I sell OTP properties in Vic and I can tell you yes that's how it works.

Stamp duty is paid within 30 days of settlement and FHOG depends how you lodge it. If yo lodge it yourself then within 14 days of your application after settlement and if with an agent then at settlement.

Read these:

First Home Owner Grant (FHOG) lodgement guide | State Revenue Office

Buying a Property | State Revenue Office