In a bid to stimulate the WA property market, Mark McGowan’s Labor government recently announced a stamp duty rebate of 75% for people buying off-the plan apartments.
What is stamp duty?
For those unfamiliar or considering entering the property market for the first-time stamp duty is a government tax on certain transactions. These transactions may include when you buy a car, engage a new insurance policy or purchase a property.
The value of stamp duty can vary greatly based on the follow elements:
- Property location
- Whether you’re a foreign purchaser
- Type of dwelling (established home vs off-the-plan vs new)
- Property value
- Whether or not you’re a first home buyer
Once you decide to purchase a property, you’ll generally have 30 days to settle your stamp duty payment and because this is an upfront cost it can’t be included in your home loan.
Under the new proposed state government initiative, buyers entering pre-construction contracts (purchasing an apartment off-the-plan) over the next 2 years, are eligible for a stamp duty discount of up to $50,000 (or 75%).
Who benefits from the rebate?
First home buyers will enjoy this discount coupled with the first home owner grant (FHOG of $10,000).
To put this into context, if you’re considering purchasing an off-the-plan apartment valued at $450,000, your current stamp duty cost would be $3,838, however you’ll now only have to pay $960, meaning a saving of $2,879. Plus, you’ll receive an additional $10,000 to go towards the total purchase price. Massive savings!
Downsizers and other general buyers will also reap massive benefits from this incentive. Under these changes, those getting an off-the-plan unit worth $500,000 will only be required to pay $3,254 in stamp duty, saving them $9,761.
Foreign investors are also being encouraged to enter the WA property market. Under the new initiative, foreign purchasers will receive both the stamp duty concession as well as a 75% rebate on the foreign property tax – another bonus, recently announced by the government. It’s also worth noting, there’s no limit to the number of properties these concessions apply to.
Additional Incentives Only Available at Halcyon
In addition to these initiatives issued by the state government, Halcyon developers, Celtic Properties have got together to help buyers save even more.
For a limited time only, general buyers at Halcyon, will enjoy an additional 25% saving on stamp duty, in addition to the government’s 75% saving. Yes, that means you won’t have to pay anything for stamp duty on your new boutique apartment purchase. – That is a 100% saving of Stamp Duty, valued up to $50,000. *See terms & conditions.
Investors will also be exempt from stamp duty on all purchases at Halcyon in Subiaco. In addition, they will also receive a 5% rental return guarantee on all purchases, meaning you can receive an income, while finalising a tenant for your new apartment. *See terms & conditions.
With prices starting at $330,000 and with an extensive range of configurations available in the perfect location, Halcyon will be the x factor in your property portfolio.
So, whether you’re looking for a lock and leave lifestyle in a vibrant Perth suburb or an investment that delivers on all financial levels, Halcyon really does have it all.
These additional incentives are only available for a limited amount of time, at the discretion of the developer *See terms & conditions. To view the full range of options on offer and secure your new boutique Subiaco apartment contact Ryan from the Halcyon project management team today.