Huge $$ savings tip

I accidentally stumbled upon this one recently which saved me over $21,000.

I was interested in a brand new apartment in Erskinville, Sydney which cost $610,000. Due to the NSW's government's stimulus plan, all home buyers get 50% off the stamp duty on newly built homes up to only $600,000. After a long drawn negotiation process with the developer, I eventually managed to convince them to reduce the price to $600,000 so that I am eligible for the 50% savings which is an addition $11,250.

I'm not suggesting you go look for property just above $600k. Obviously you need to ensure it's a good investment and the price point is reflective of market ie $ per sqm to ensure original pricing by developer is not inflated.

Happy investing! :):)
 
That's fine if the vendor doesn't get any financial consideration above $600k, but if you then send them any of the 'savings' afterward as part of the deal it becomes fraud I think. (i.e. purchase price is not real purchase price).
 
Hi Ian,

That's a very good point that you picked up actually. Definitely no kick backs! I don't believe in that practice because it will eventually catch up against the reputation of both buyer and vendor. I think the integrity of the big developers are at stake and the consequences are definitely not worth the risk.

From my point of view, I will never allow my investment judgment to be clouded and swayed by taking these things into consideration. I did very solid research on the area and similar properties on the market. I then rationalised with the vendor as to why $600k was going to be the max I was willing to pay.

For all those reasons which I could justify, they eventually saw my point and agreed. Research definitely pays but I think I was also quick to show a keen interest and put in the holding deposit very early in the process.
 
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