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Before 1 July 2017 if you bought a real estate off the plan you were eligible for significant concessions to stamp duty particularly if you signed a contract before construction of the building commenced. This was known as the ‘off the plan concession’ and the reason for the concession was because (essentially) duty was assessed on the value of the land at the time you bought the property, not the price you paid for the land and the building that would be eventually built on it.
This was attractive for many buyers because of the potentially significant savings to stamp duty.
However, from 1 July 2017, the law changed in Victoria.
Now, off the plan concession only applies to buyers of residential homes who would occupy the property as their home and if the value is under a certain threshold. You will not be eligible for off the plan concession for the following circumstance for instance:
1. if you are buying an investment property; or
2. the dutiable value of property that you are buying is over the threshold
So, beware of the changes, if you buy property in Melbourne to invest, you should get some real estate investment advice and legal advice from a real estate lawyer in Victoria or if you are interested in buying a home off the plan because of the concessions you might be eligible for, you need to consider these changes and get some real estate legal advice from a lawyer in Victoria before you buy. If you prefer legal advice online please visit our Advice Centre.