The State Government while helping New Home Owners also slipped in a few new taxes along the way . There are new laws for stamp duty exemption that investors need to be aware of .
Per the SRO website:
From 1 July 2017, the off the plan stamp duty concession will only be available for those who qualify for the principal place of residence stamp duty concession or the first home buyer stamp duty exemption/concession. The concession will no longer be available for other purchases, such as residential investment properties and commercial properties.
This gives owner-occupiers a competitive advantage against investors, and aligns with the Government’s goal of supporting first home buyers. The Government is using the savings from this initiative to fund the changes to stamp duty for first home buyers.
What impact will this have for property developers? For commercial developers and purchasers it will mean that there is no incentive for buyers to purchase early as there is now no stamp duty savings. This may impact on both confidence and the ability of developers to borrow to fund their project. Many financiers require developers to have a % of sale prior to commencement to ensure the project will be able to meet their obligations. For commercial this is another barrier to entry . For residential projects it also reduces the ability of the developer to market savings to the investor market . While the State Government will raise more taxes will it result in less investors buying new residential property for investment with the saving now not available.
Together with the new Vacant land tax this will certainly impact on the new inner city Victorian Property market over the next two years.