Victorian Stamp Duty

[farone]

hi all

I have decided to spread my wings and look at investing in the victorian unit market. I was in melbourne last week and was talking to the local selling agent and he mentioned that if i buy a unit off the plan I only need to pay stamp duty on the land value for my unit.

Are there any melbourne forumites that know anything about this?

 

[The Y-man]

Yes, it's a major selling tool for developers.

Depending on how much of the unit/house is completed, your stamp duty (which is quite hefty in Vic) varies.

Of course, one could argue the price of the development is jacked up so high by profit margins, that the buyer sees very little benefit (but I am cynical of OTP sales )

Cheers,

The Y-man

 

[Michael Yardney]

Most would suggest that it is not a good time to buy off the plan.

it may have been a good strategy in a strongly rising market, but too many off the plan buyers have regretted their decisons.

You can get much better value with established properties - their are lots of bargains around in Melbourne.

What areas are you looking at?

 

[farone]

Hi Michael;

Your probably right about your view on buying off the plan. Maybe I should look at buying off the off the plan when the market turns.

As for suburbs to buy in I am not to sure as when I have been to Melbourne I have onlt been in the city. So I would only buy a property within 15-20 minutes drive to the city.

Cheers Michael

 

[Michael Yardney]

When buying off the plan or from developers in general you are paying a price set by the devlopers which includes their profit, their marketing costs, the agents commision, etc

You will find good value in established properties - their are still plenty of motivated vendors.

And you can't just buy any property in Melbourne - some will perform much better than others