Off The Plan Stamp Duty Concessions for Victorians 2024

Source: Victorian Premier's Office

Major changes to Victoria's stamp duty concessions for off-the-plan purchases are set to revolutionise the property market from 21 October 2024. This comprehensive reform promises significant savings for property buyers whilst stimulating housing construction across the state.

What's Changing?

The Victorian Government has dramatically expanded stamp duty concessions for off-the-plan purchases, removing previous restrictions and opening opportunities for all buyers. Here's what you need to know about these transformative changes:

Expanded Eligibility

• Available to all buyers, including investors and owner-occupiers
• No maximum property value thresholds
• Applies to apartments, units, and townhouses in strata subdivisions

Significant Cost Savings

The concessions work by deducting outstanding construction and refurbishment costs from the property's value when calculating stamp duty. For example, a buyer purchasing a $620,000 off the plan apartment before construction could see their stamp duty reduced from $32,000 to just $4,000 a remarkable $28,000 saving.

Who Benefits?

Property Buyers

• First time buyers
• Owner occupiers
• Investors
• Anyone looking to enter the Victorian property market

Property Types

Eligible properties include:

• Apartments
• Units
• Townhouses (within strata subdivisions)

Note: House and land packages are not eligible under this specific scheme, though other concessions may apply.

Strategic Benefits for Early Buyers

The earlier you purchase in the development timeline, the greater your potential savings. This structure incentivises early commitment to projects, which offers several advantages:

1. Maximum stamp duty savings
2. Potential for capital growth during construction
3. Greater choice of available units
4. More time to plan your financial arrangements

Market Impact and Opportunities

These reforms are expected to catalyse significant changes in Victoria's property market:

For Buyers

• Reduced barrier to entry
• More affordable property investment
• Increased purchasing power
• Broader range of eligible properties

For the Property Market

• Accelerated project commencement
• Increased housing supply
• Stimulated construction sector
• Enhanced rental property availability

Why Now is the Time to Act

The concession program runs for 12 months from 21 October 2024, creating a limited window of opportunity. With interest rates presenting challenges for many buyers, these stamp duty savings could make the difference between securing your desired property or missing out.

Key Considerations

• Limited 12-month program duration
• Significant upfront cost savings
• Opportunity to enter the market sooner
• Potential for strong capital growth

Making Your Move

To maximise the benefits of these new concessions, consider:

1. Researching eligible developments
2. Understanding your financing options
3. Seeking professional advice
4. Acting early to secure the best opportunities

Expert Guidance Available

Navigating off-the-plan purchases requires careful consideration of various factors. Professional advice is crucial to ensure you make informed decisions and maximise available benefits.

Next Steps

For personalised guidance on how these stamp duty concessions could benefit your property purchase, contact Pearson Chambers Conveyancing. Our experienced team offers:

• Expert advice on stamp duty concessions
• Free Section 32 contract reviews
• Comprehensive conveyancing services
• Professional guidance throughout your purchase

Contact Us Today:

Phone: 03 9969 2405 Email: contact@pearsonchambers.com.au

Don't miss this opportunity to save significantly on your next property purchase. Contact our team today to learn how these new concessions can work for you.