WA: 75% stamp duty rebate for OTP apartments

News today in Perth

"From today, buyers who purchase a new apartment off the plan will be eligible for a 75 per cent transfer duty rebate of up to $50,000.

We know this from hard evidence based on cities around the world: if we want a more dynamic, vibrant and safer city, with a day and night time economy, then we need more people living in the city. The City of Perth has just 25,000 people!

This will drive new apartment construction, boost the WA economy and create jobs.

This rebate builds on the generous stamp duty assistance that is already available to first home buyers in WA. For example, a first home buyer purchasing an apartment valued at $450,000 would currently pay around $3,800 in duty. The rebate will reduce this to just $960.

As a result of responsible financial management, the McGowan Government is able to introduce the rebate and make it significantly more affordable for buyers to invest in off-the-plan developments." Source: John Carey MLA

Not much details yet and I can't see an official policy link but it's a stimulus policy and might be temporary - hopefully won't be rescinded before actual settlement on an OTP apartment - we all know how long those can drag out!

 

Wow - out of nowhere?

 

I know! It was listed as something that could help by REIWA etc but I didn't hear of anything in the planning or at discussion in parliament etc.

I've asked John if he has any documents/policy links for it so will post it up when I have them

 

Media statement Media Statements - New stimulus measure to promote infill and job growth

Policy documents will be Dept of Finance website in the coming days.

I am very curious what "buyers who sign pre-construction contracts" means as generally you can do OTP during construction as well as before. Curious if that means that the rebate is not available to projects that have started construction.

 

The rebate is available to owner-occupiers and investors who enter into a pre-construction contract between 23 October 2019 and 23 October 2021 (inclusive) to purchase a new residential unit or apartment.

Off-the-plan Duty Rebate

 

$3800 on Stamp Duty in WA for a $450.000 property? Wow! here in SA we are being ripped off then.

 

That's the FHOB rate - normal is MUCH higher. It's around $15k for a normal buyer, with the new scheme it would be about $4000.

 

Who on earth is buying an OTP apartment to save 10k on stamp duty...

 

Where do I sign?

I might get me a nice apartment with views of Cockburn train station and the freeway. With a generous strata fee.

#winning

 

Well, I still think we are being taken for a ride in SA as we don't have such FHOB rate, full rate for everybody!!! I'm just going to pay about $30k for a property we are in contract with at the moment.

 

The same kind of person that considers buying OTP apartments.

 

Come live in Perth

 

We used to for OTP prior to July 1 2018

Off-the-Plan Concession - RevenueSA

 

Still wouldn't consider it..even with 100% rebate, perhaps if it was in NSW

 

So future buyer has to pay more than me in stamp duty, guess I take that out of the sale price or will it be added to my purchase price.

 

Quick question for WA locals; does Perth have an oversupply or under-supply of apartments at the moment?

 

An oversupply is an understatement with so much more opportunity to build also...

 

If the WA State Government has its wish. Perth will be dotted with high rise apartment blocks.

 

I might go against the grain here but I would say for apartments we used to have quite a big over supply but a lot of that has been eaten up in my opinion. So I would say there is an lowish over supply. The trouble with apartments is that it only takes a few large projects to be released for that to all change but as the larger projects take so long to get off the ground it can mean the big chunks of supply up and down.
Certainly the ability for the average investor to do infill apartments has greatly reduced. 4 years ago there was a lot of smaller investors doing it but finance for them has pretty much dried up so there is less and less of that happening. Design codes have also changed this year which potentially makes getting DA harder.

 

i'll take 2 thanks! @sash @Player you bout soz want a couple too