With the new financial year arriving fast there are many changes happening on both a national and state level that will affect property investors throughout the country. One of the big changes is to do with the new stamp duty policies being implemented in both Victoria and New South Wales.
Earlier in the week, New South Wales premier, Gladys Berejiklian, announced that stamp duty will be axed for first home buyers purchasing a new or existing property valued up to $650,000. On top of this any property valued up to $800,000 will receive a stamp duty discount.
Speaking on the issue Ms Berejiklian said, “I want to ensure that owning a home is not out of reach for people in NSW. These measures focus on supporting first home buyers with new and better targeted grants and concessions”
This comes off the back of the Victorian Government’s recent changes which also provide a stamp duty exemption to properties under $600,000 and discounts on properties valued up to $750,000.
The big difference coming to the Victorian property market though will be in the scrapping of stamp duty concessions for investors buying off the plan. Investors purchasing new apartments have enjoyed savings of over $20,000 in recent times but from July 1 this will no longer exist, forcing many investors to purchase quickly or re-evaluate their investment strategy.
So what does this all mean for you as an investor?
The Government is creating these changes to help first home buyers get into the market and while on the surface, this is exactly what it will do, we believe the bigger picture will actually help smart property investors to take advantage of another uplift in prices. The lower entry costs will allow more people to get into the market but what this does is create even more demand in an already under-supplied market. When demand outweighs supply, vendors will put their prices up which means if you are looking to invest, now is a perfect time to get into the market.
Further to this, if you want to take advantage of stamp duty concessions as an investor, now is the time to act in the Victorian off the plan market where you can still save over $20,000 in stamp duty up until June 30. Investing in the right area now, could help you enter this market at a lower cost while also taking advantage of the capital growth that will come.
If you would like to know more about how you can take advantage of these new government policies than contact us today.
The above information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.