Victoria: Last chance to invest in off-the-plan and save on stamp duty

A reminder to investors that the stamp duty concession for buying off-the-plan properties in Victoria will be scrapped from 1 July 2017 – only first home buyers and owner-occupiers will be eligible for a discounted rate of stamp duty from that date.

If you are considering purchasing an off-the-plan property as an investment in Victoria, you must sign a contract by 30 June 2017 in order to be eligible for a stamp duty discount.

But as I always warn: please do not sign any contract without obtaining legal advice first. More about that via the link below.

 

Save on stamp duty, potentially lose on the price. Is this why lend lease has been pushing melbourne quarter seminars interstate? Demand based changes are good for sellers.

 

Time to be cautious... this market has been strong since 2013 and interest rates are on the rise.

Anyone choosing Melb should be looking to add value at this point in time, otherwise they risk market conditions changing. I don't know whether this market is close to peak, but my guess is not too far off.

MTR

 

Surely this is only relevant to off-the-plan apartments or existing houses? For new house and land packages how does it change? You only pay stamp duty on the land component...the second contract is with a builder to construct a house..which does not incur stamp duty..only GST. For first-home buyers, buying off the plan for a house and land package, the concession will result in about $4,000 in savings on a $150k lot purchase.... and about $10,000 on a $250k lot.

Are you saying the government will require payment of stamp-duty on the 'second' contract or 'build' contract as well? How can they charge stamp duty on something that has not yet been constructed? In some cases these builds are years away.

 

Yes.