Stamp Duty for Off the Plan Purchases

The Victorian Government has announced significant changes to stamp duty for off-plan purchasers, set to provide substantial savings, especially for buyers of units and apartments. Key details include:

• The concession framework will extend beyond first-home buyers and owner-occupiers purchasing below $750,000 and $550,000, respectively.
• The concessions apply only to strata townhouses and apartments, not house and land packages.
• It remains unclear if foreign buyers will benefit.

The reform is expected to invigorate Victoria’s property market, potentially reducing the stamp duty on a $620,000 apartment to just $4,000, saving buyers $28,000. This could stimulate sales, but caution is advised due to volatile construction costs and the potential for developers to rush into pre-sales without a complete understanding of costs.

This change aligns with broader reforms, including the eventual replacement of stamp duty with an annual property tax for commercial properties starting in 2024. For investors, the current reduction presents a compelling opportunity to enter the market, particularly in Melbourne’s high-demand areas, potentially increasing rental yields and making properties more accessible. Overall, it’s a timely chance for property investors to explore new options.

Who will Benefit from these new Temporary Changes to Stamp Duty in Victoria

Investors

Lower stamp duty means less upfront expense getting into the market with an off the plan investment property, making them far more attractive than they were prior to the new stamp duty changes.

Downsizers

For those looking to downsize and make a move out of the family home into an apartment or townhouse, that is brand new and mostly maintenance free, the new stamp duty concessions will allow you to allocate more funds towards paying off the property or increasing your investment / retirement planning.

Home Buyers

For those looking to purchase their first home or wanting to buy to share with another person, recently divorced or widowed etc this is an ideal time to be able to secure your apartment or townhouse at a reduced entry into the market cost, utilising a lot of the stamp duty you will be saving.

Click here to watch the Sky News report

Thinking of Buying to Live in or wanting to Invest in Property

Fill in our form below and we will contact you to discuss. at properT network we have access to most Off the Plan Apartments, Units and Townhouses. Saving you time and helping you make an informed decision!

To read the article in the SRO web site click here for their details on the concessions