A great opportunity for Buyers, Investors, and Sellers!’
Under the newly introduced state government budget, the cost of stamp duty will be cut off by 50 per cent in Victorian suburbs. The announcement of discount is for the newly build properties that have a value of up to $1 million and will remain in the place till 2021 June end.
Also, whoever will buy the existing homes will get a 25% discount on the cost of stamp duty at the same price bracket.
Opportunity for Buyers
Stamp duty discounts will be ‘shot in the arm’ for homebuyers as it is an excellent opportunity for huge savings. Stamp duty cost was actually the main barrier for those looking to buy a new home.
From 25th November onwards, as part of the Victorian government’s “Big Housing Build”, the tax relief will get started for the newly entered contracts.
Through this move, government expects that people will get attracted to invest in the property market, that suffered a big hit during the early Covid-19 days.
With the previous Covid restrictions that Andrews government announced, inspections on properties in Clyde North and overall Melbourne were completely banned for many weeks. This had an immense effect on the economy of the property market. The stamp duty reduced estimated from $7.1 billion to $4.6 billion in the financial year of 2020-21.
The step would be helpful to move forward towards the economy’s recovery.
Opportunity for Investors
Tim Pallas- Victoria’s Treasurer said that the focus is to put the efforts to get out the best results. Adding to that, he said that this step will be helpful in getting people under $1 million price quote. This will urge them to come back to the market.
Moreover, the discount on stamp duty is not only for people looking to build their house but is for BTR developments as well. Thus, the investors will get the chance to build rental properties, who were holding back for this kind of opportunity. We can estimate that the step would be helpful to get additional 5000 rental homes.
The discount will also benefit from the release of Absentee Owner Surcharge, which will be announced from January 1, 2022.
As per budget papers, investment in build-to-rent (BTR) will be proven effective for the economy recovery of Victoria and a variety of housing choices.
Opportunity for Sellers
Apart from buyers and investors, the stamp duty discount is a great opportunity for sellers as well. Although the direct target of stamp duty reduction is home buyers; they also create hidden benefits for sellers.
The Sellers who felt uncertain about the market were holding back. But listing the property in the market now will be useful to get more exposure. The buyers will emerge towards buying land or existing house due to lower stamp duty. So, the sellers can have more chances of getting better and multiple options.
The greater is the demand, the greater will be the offer. So, without wasting any time, sellers should list their properties in the burning market.