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Have you weighed up the risks on the NEW Victorian stamp duty concession?

This week the Vic govt has slashed stamp duty for off-the-plan property purchases, if you sign a contract within the next 12mths. 


Anyone buying an apartment, unit or townhouse off-the-plan could save a bucket load of cash on the upfront costs. 


There is no limit on purchase price AND even applies to investors…It was designed to bring more stock on the market because the government has promised to build more homes and to help people get into the property market who might otherwise be shut out due to high upfront costs. 


BUT... is this really going to help those people enter the market? 

You'll still need a 10% deposit for most off the plan purchases. 

What happens if you buy something off the plan to save a few bucks but end up unable to settle on the property in 2-3 years once it’s built because you overpaid and the bank valuation doesn’t stack up? 


Are developers now going to inflate prices because of the increase in demand?

In my opinion this might be a great option for seasoned pros, with big bank accounts but it’s not going to help the people who need it most, first home buyers with small deposits.

So, when buying off the plan it’s important you speak to your broker about the pros and cons. Make sure you understand what happens if you can’t settle on it once built, because developers will only give you a few weeks notice before you need to get your loan approved and settled. 


Hey government, why don’t you raise the stamp duty concession threshold for first home buyers so that young families can buy something near where they want to live, instead of sending them out to the outer suburbs!? 

$600k limit for a full stamp duty concession is laughable. 

If they buy in more expensive areas then there will be less of that stock in those areas, which will move prices and incentivise developers to actually want to build stock anyway....My two cents. 



What do you think about it?Have you weighed up the risks on the NEW Victorian stamp duty concession?

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