Savvy property investors are rushing to buy off-the-plan apartments and townhouses in Victoria before June 30 to take the last chance to save almost 5% stamp duty cost.
New Victorian property laws come into effect on July 1, which will see the cost of stamp duty rise.
Ironfish Managing Director and property investment expert Helen Qin said Melbourne property is continuing to boom.
“First home buyers have been pushed out of the market as the property price in Melbourne keeps going up,” Ms Qin said
Ironfish Managing Director Helen Qin“Affordability has become a more serious problem, especially in inner Melbourne areas.
“So, the Victorian government wants to help first home buyers getting back to the market by abolishing off-the- plan stamp duty concessions to push away investors.
“But I think the real problem of high property price is due to the lack of property supplies in inner city, plus, there are so many people moving to Melbourne for jobs," she said.
“The new policy will save money for some first home buyers in Victoria and investors will have to pay more for off-the- plan properties.
“But in fact, there might be more transactions being stimulated because of the new policy, which could cause the property price to rise further.”
Ms Qin said property buyers could minimise their expenses in the following scenarios:
If you are a property investor, buy VIC off the plan properties before July 1, as this can save you up to $35,000 if the property price is $700,000.
If you are a first homebuyer looking for an established home: buy your home after July 1.
If you are a first homebuyer looking for an off the plan property over $630,000: buy property before July 1 to save more under the current policy.
