Buyers of off-the-plan apartments and units will save up to $50,000 on stamp duty under a new rebate scheme.
Effective immediately, the two-year State Government scheme will return 75 per cent of duty payable on units and apartments, to a maximum value of $50,000.
Pulse Property Group director Jared Rayner welcomed the rebate and said it was perfect timing amid new figures which showed unit prices had increased for the first time since June 2018.
Perth unit prices rose 2.8 per cent to a median of $344,672 in the September quarter, according to Domain’s House Price Report.
Mr Rayner said the new stamp duty structure created a more level playing field for buyers.
He said the rebate was available to anyone who signed a pre-construction contract to buy a new apartment within the next two years. For a $600,000 apartment, the scheme means a stamp duty saving of nearly $17,000.
“And there is no cap on the purchase price or on how many times an applicant can claim the rebate,” Mr Rayner said.
“We have a number of developments in sought-after suburbs such as Ardross and South Perth that meet the criteria. This provides a great opportunity for home buyers to live closer to the city in premium riverside developments.”
REIWA President Damian Collins said the decision was a significant win for property buyers and restored the current imbalance where standalone houses only paid duty on land.
Mr Collins said reducing the tax for off-the-plan sales would help increase the speed of transition from apartment sales to actual construction activity.
“Offering a 75 per cent rebate of up to $50,000 on stamp duty for off-the-plan purchases is a great start, however not everyone wants a brand new property and to wait years for it to be built,” Mr Collins said. “The WA Government needs to look at other ways that they can help more people in owning their own homes.
“In the current real estate climate, we need to help encourage more people to buy. With first home buyers accounting for one third of all sales in Western Australia, they are the oil of the property engine and we should be making it easier for them to get into the market, with the help of all sectors.
“REIWA recommends that the stamp duty exemption for first home buyers increase from $430,000 to $550,000 to help encourage sales activity in the established market as well as the infill developments.”
For more information, contact Jared Rayner today.
08 9259 6999 | firstname.lastname@example.org