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Stamp Duty changes impacting 'off the plan' purchases?

Posted by Darren Blair on Mar 23, 2017 12:00:51 PM

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First Home Buyers & Investors

Outlook for 2017

What does the Stamp Duty news mean for you?


As the proverbial dust starts to settle on the latest Stamp Duty news, which will affect both Investors and First Home Buyers alike. We have broken down what the changes will mean in real money for off the plan purchases post 1 July 2017. 

 

The below table is based on an off the plan purchase of $595,000 whereby the dutiable value has been calculated at 25% of the purchase price. The 7% additional Foreign Purchaser Stamp Duty Levy and $5,000 FIRB application fee have also been taken into account. 

 

 

Prior to July 1st

After July 1st

First Home Buyers

$1,998

$0

Investors

$3,995

$30,770

Foreign Purchasers

$50,645

$77,420

 

First time home buyers will definitely benefit from the change as the Victorian government looks to boost opportunities to enter the market. Exciting times for those looking to lay down their roots and enter the housing market for the first time. In addition to the Stamp Duty savings, the First Home Owners Grant (FHOG) will still be in effect which provides those looking to purchase their first home with a $10,000 grant they can put towards their first home. 

 

The changes do present an opportunity for investors to take advantage of the low Stamp Duty applicable prior to July 1st 2017. For those looking to invest this is the perfect time to add that 2nd, 3rd or 4th investment to their property portfolio. 

 

Whether you are a First Home Buyer, Investor or Foreign Purchaser, get in touch with a Capital representative today to go through some exciting property purchase opportunities throughout Australia. 

 

Click here to see our current projects.

If you would like to find out more information, please feel free to contact us.

Darren Blair

By: Darren Blair

Darren Blair is the Sales and Marketing Manager at Capital.

Topics: Investment, First home buyer, Finance