Big Increase to Property Purchase Costs Next Month

By May 6, 2021 Buying Advice

Did you realise there is currently a  25% discount applied to stamp duty costs in Victoria for EVERY buyer for properties under $1 million?

Not just First Home Buyers, or even Owner Occupiers. It also applies to investors and foreign buyers (yes, we were a bit taken back by this government largesse). It even applies AFTER all other discounts available to First Home Buyers. For new homes, this discount increases to 50%.

But it expires on 30th June. And it will not be extended with its current generosity.

For potential sellers in this price bracket, there is good reason to bring forward selling prior to this date. The cost to ALL buyers is due to go up on 1st July. This means they can afford to pay more until this date. Yes, prices may continue to rise over the course of the year, but prices are spiking right now due to a large pool of buyers and not much choice from sellers. As such, there is absolutely no guarantee that the price for individual properties will be higher later in the year.

Underquoting is still rampant and, on the rise, again, but some prices currently being achieved are genuinely surprising to sellers and agents alike. This does not let agents off the hook for obvious misquoting. A 10% blowout is not uncommon at the moment; 25 or 30% is likely more indicative of conscious underquoting.

For those planning to sell “sometime this year”, consider bringing your plans forward if it is below the million-dollar bracket. For advice on whether it likely fits under this price cap, please feel welcome to seek our assistance by clicking here for a prompt, free appraisal.

Article from Cooper Newman Real Estate

Photo by Watermark Designs on Unsplash

About The Author
Paul Kounnas

Paul Kounnas

For nearly 40 years, Paul Kounnas has been helping people buy and sell property in and around the Manningham area. In 1993 Paul established Hudson Bond Real Estate and he is recognised as one of the most respected, prominent and knowledgeable members of his profession. A licensed Real Estate Agent and member of the REIV and the International Real Estate Federation (FIABCI), Paul provides regular expert advice and information on all matters relating to real estate.

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