Big Win for Victorian Property Investors: Stamp Duty Concession Unveiled!

The Victorian Government is shaking up the property market with a new stamp duty regulation set to benefit investors. Starting 21 October 2024, buyers of off-the-plan apartments, units, and townhouses in strata developments will enjoy a temporary elimination of stamp duty for one year. This move is part of a strategic initiative to boost housing supply and make investment opportunities more attractive.

Why This Matters for Investors

This temporary concession opens doors for a broader range of purchasers, including investors, companies, and trusts, removing the previous restrictions tied to principal residence and first-home buyer concessions. By expanding eligibility, the government aims to stimulate the property market, encouraging development and creating more opportunities for savvy investors.

For those purchasing off-the-plan, the new concession means significant savings. By deducting construction costs incurred post-contract from the purchase price, investors can benefit from a drastically reduced dutiable value. For example, the stamp duty on a $620,000 apartment could drop from $32,000 to approximately $4,000 — that’s a potential saving of $28,000!

Key Points of the Concession

• Applies to contracts entered into from 21 October 2024 for a period of 12 months.
• Eligible Properties include off-the-plan apartments, units, and townhouses within strata subdivisions.
• Foreign Buyers note: the concession does not apply to additional duties for foreign purchasers.

Now is the perfect time to explore Victoria’s property market and capitalise on these changes. If you’re interested in exploring opportunities, reach out to Property Club at enquiries@propertyclub.com.au and let’s secure your next investment!