Don’t miss out on up to 50% savings from now till June 30 2021. With the help of the Victorian Government you can buy a home with a smaller outlay -money in your pocket! Considerable incentives have been offered to stimulate the property market as a result of the COVID-19 pandemic in the budget announcement and you could be a beneficiary. Home buyers will save 50% in stamp duty – worth up to $27,500 (on a $1 million property) – for new builds and 25% – worth up to $13,750 – when purchasing existing residential properties. Buying and selling during Covid has been a roller coaster and the next seven months might be a high.
The Victorian Budget 2020-21 includes a number of announcements related to legislation administered by the State Revenue Office and if you are buying real estate under $1,000,000 a potential equity gain is yours if you act fast.
- Bringing forward the 50% land transfer (stamp) duty concession for commercial and industrial properties in regional Victoria — applies to contracts entered into on or after 1 January 2021.
- A land transfer (stamp) duty waiver of up to 50% on purchases of residential property in Victoria with a dutiable value of up to $1 million — applies to contracts entered into on or after 25 November 2020 and before 1 July 2021 – 25% reduction for existing dwellings and the full 50% for new builds.
Time is of the essence for buyers
There is a relatively small window of opportunity for buyers to purchase and pocket the savings. You do need to consider that there is a month effectively gone from 23rd December to the end of January as the market eases off during Christmas. If you delay there will be more urgency and competition transacting closer to the June 30 deadline.
Clearly this a rare event, indeed the Premier stated that a 100–year pandemic is the motivation for the Victorian Government’s extra ordinary100-year fiscal response. Governments never like to have budget deficits but stimulating the economy is an emergency born from Covid 19. Simply put, if people can’t work, they can’t consume, if they can’t consume there is no growth and no growth affects tax, trade, currency and global status.
The long term plan includes jobs so that people can afford housing going forward. If the government spends on goods and services that people need, there are more jobs created and that is the best way to get the tax needed to pay for the deficits. In fact, spending that builds the economy – even if it creates a large immediate deficit – is the quickest way to grow the tax base needed to not burden future generations. Like borrowing on an excellent asset builds money quicker than trying to save for it. So, this event is rare and you don’t want to miss it.
Sellers need to get on the wave too. It is reasonable to assume that your house is going to be in demand for at least seven months. Spend the Christmas break making your house perfect and get it listed. Make sure you don’t waste your opportunity by overpricing because that keeps your house on the market longer and might take you out of the running as a great purchase. This is why auction is your friend because the market now has a small opportunity to create a very competitive arena for buyers. Get out there, make your property competitive and take advantage of the economic environment that appears to be emerging from gloom.
So, what are you waiting for? Ready, set go!