The Victorian Government has just announced an end of Financial Year Sale.
How exciting is that! It’s not often that a Government goes out of its way to provide incentives for Property Investors to rush to the market, but that is exactly what we have here.
Given the constant and repetitive media comments about affordability it’s not unexpected but it is worth taking note of. This opportunity is only available to Investors and if you are seriously considering buying an investment property, NOW is the time to do it.
I’m sure the Victorian Government didn’t mean to create such a level of demand but the recently announced changes to Stamp Duty exemptions has had a lot to do with it anyway. They have decided to end the Stamp Duty concession for OTP purchases by investors and it takes effect from July 1. These measures are intended to benefit First Home Buyers or Owner Occupiers purchasing a property up to $600k as a means of improving affordability.
Effectively that means you can still get the exemption by signing a contract up until 30th June. You have 3 months from now to decide to buy.
This is the time where our Value criteria becomes even more important than before. There may be a tendency to rush in and grab a property OTP, just for the sake of it. However, it is still important to buy something that has value attached to it. The lure of saving Stamp Duty should not overrule the criteria for purchasing in the first place. Remember, this is a long term decision and the savings on Stamp Duty, as substantial as they are, will still pale in comparison to the purchase price itself.
Luckily, our method of selection is geared solely towards investors which is important given the small time frame still available.
The stamp duty exemption being set at a purchase price of $600k is also curious. As the Media is so keen to point out, the median value for property in Melbourne as at the December 16 quarter is $770K. If this was a true reflection of price, wouldn’t it make sense to set the Stamp Duty concession at that value?. After all, these measures are designed to help First Home Buyers and Owner Occupiers with affordability issues. Or are they?
I find it strange that the assistance from the Victorian Governmentt is set below what is publicly accepted as the price point for Melbourne property. Be that as it may, there are only rare occasions when genuine opportunities to save money become available.
This is one of those opportunities.
Of course, we shouldn’t overlook the fact that post July 1 there will be continuing good news for First Home Buyers and Owner Occupiers in general. They will be able to purchase property up to $600k without incurring Stamp Duty. That’s a great initiative from the Government that will be welcomed by a vast majority of the community. There has been a lot of comment from various groups about property affordability for First Home Buyers in particular and I think this announcement will provide some relief.
While I don’t usually go in for wild outrageous statements, this time I have to say the obvious.
Hurry, don’t miss out, there will never be another opportunity to save money like there is right now.