Did you know home buyers are able to claim Stamp Duty Concessions on the purchase of eligible off-the-plan apartments anywhere in South Australia up to the 30th June 2017? The concession will vary depending on the stage of completion of the development and market value of the apartment.
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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