Investors looking to diversify into the Victorian property market should note that existing  concessions for stamp duty relief for off the plan purchases will be abolished from 1 July 2017.

The Victorian Government announced that stamp duty (land transfer duty) savings for investors buying property off the plan will not apply for investors for contracts entered into from 1 July 2017.

This means that only buyers who want to live in the property or are first-home buyers will be able to take advantage of the stamp duty concession in Victoria for purchases under $600,000. Investors will no longer be able to pay pro rata amounts based on a dutiable portion of the land. This reform is consistent with most other Australian states, like NSW, that don’t have stamp duty concessions for investors.

Investors can still take advantage of the existing concessions by filling out an Expression of Interest (EOI) form and paying a deposit of approximately $1,000 – $2,000, to put the property on hold. As long as the contract is entered into by the 30 June 2017, you will qualify for a concession.

Hurry! You only have 6 weeks to invest before the concessions are cut!

NSW property buyers can access the first new home buyers exemption if the buyer is going to and does occupy the home for 6 months within 12 months.

Contact Peter McNamara today for your stamp duty and property advice.