AUSTRALIAN STAMP DUTY SLASHED
July 08, 2009
The state government has cut stamp duty by 50% on new-build and off-plan properties worth up to AUD600,000, creating savings of up to AUD11,245. The scheme, known as the Housing Construction Acceleration Plan, is open to both Australians and overseas investors who sign contracts between 1 July 2009 and 1 January 2010 for properties in the state, including Sydney.
“This is definitely going to encourage overseas business,” said senior property consultant Denise Casey of investment firm Australian Property Solutions. “It’s a major incentive for people who have been sitting on their hands and couldn’t have come at a better time. Prior to the end of last year, Sydney had few growth prospects but prices have come down and it’s starting to look more attractive.”
There is no limit to the number of homes that can be bought under the initiative but it is not available to first-home buyers. Instead, the state government is offering first-time grants in addition to the federal subsidy of AUD7,000, giving buyers up to a total of AUD24,000 to spend on their first property.
Property shortage
“There has been a severe shortage of new-build properties across Australia and the [federal] Rudd government is using a stimulus plan to encourage developers to start building again,” said Casey. “We have the complete opposite view of off-plan properties in Australia compared to Europe. There is a complete undersupply of new property so off-plan is often the only choice for investors.”
Australia was recently rated one of the top three destinations for property investment in a survey conducted by the Asian Real Estate Association due to it’s falling prices and weakened currency. “We’ve been inundated with enquiries from the UK but also from Southeast Asia, and we have quite a large client base of South Africans,” said Casey.
Source - OPP