Important breaking news for property buyers:
Today the Victorian Government announced that, from 1 July 2017:
- Stamp duty will not apply to any property purchased by a first home buyer for under $600,000.
- A discounted rate of stamp duty will apply, on a sliding scale, to any property purchased by a first home buyer for between $600,001 and $750,000.
- The stamp duty concession for investors buying off-the-plan properties will be scrapped - only first home buyers and owner-occupiers will be eligible for a discounted rate of stamp duty.
- A Vacant Residential Property Tax will be introduced, aimed at stopping properties being left “unreasonably vacant”.
Here is the official government press release.
I suggest first home buyers be wary of property price increases outweighing any savings in stamp duty. Waiting until after 1 July 2017 to buy may not necessarily save money, due to the high rate of growth of property prices.
And I also suggest off-the-plan investors looking to buy soon ensure they sign contracts prior to 1 July 2017, in order to be eligible for the concessional rate of stamp duty. Please do not sign any contract without obtaining legal advice first.