The full concession will be provided on off-the-plan purchases where construction has not yet commenced and reduces after each stage of completion.
The stages of completion are as follows:
- Stage 1 – no work in relation to the building has been commenced;
- Stage 2 – the apartment’s floor slab has been poured and external walls have been erected;
- Stage 3 – the apartment’s internal frame walls have been erected and the first fix plumbing and electrical has been completed;
- Stage 4 – the apartment’s wall and ceiling linings have been completed;
- Stage 5 – the apartment’s joinery, tiling and second fix carpentry has been completed; and
- Stage 6 – the work has been practically completed and the apartment is ready for occupation.
Example of savings:
Purchasing an off-the-plan apartment for $400,000 would usually incur Stamp Duty fees of $16,330. However, by taking advantage of the current concessions home buyers can save $11,900 on Stamp Duty when buying at Stage 1, $7,630 when buying at Stage 3 and $2,600 when buying at Stage 5. However, if purchasing at Stage 6 (when the work has been practically completed and the apartment is ready for occupation) no concession will be available and the full Stamp Duty of $16,330 will be payable.
For more information on the Off-the-Plan Concessions, visit the Revenue SA website:
Or to access the Stamp Duty calculator visit:
Apartments can provide an affordable entry point into the property market and can be a positive investment if you choose wisely. If you are considering purchasing an apartment as an investment property, it is worth keeping the following guidelines in mind:
- Purchase an apartment in a good location that is not saturated with similar developments.
- The apartment should have easy access to all the best amenities such as schooling, shopping and public transport so that you can find the right tenants and sooner.
- In most cases, a smaller boutique apartment complex that offers secure parking is preferable as are those with more than 1 bedroom and ample space for comfortable living.
For advice and guidance on purchasing an off-the-plan apartment and the associated Stamp Duty Concessions, call Nieuvision on 1300 832 554.
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