Investors happy with off-the-plan opportunities
The recent State Budget updates have left most South Australian investors and home buyers relieved with many incentives to buy off-the-plan apartments. To start, State Government has advised that stamp duty concessions are being extended for another 12 months to 30 June 2018. The concession, however, will no longer be available to foreign purchasers that enter into any off-the-plan contracts as of 22 June 2017.
Pre-Construction Grant of $10,000
Further to the stamp duty concessions, purchasers that now enter into an eligible off-the-plan apartment contract between 22 June 2017 and 30 September 2017 may be eligible to receive a $10,000 grant called the Pre-Construction Grant. The grant itself is paid after settlement (generally around the time stamp duty would be paid). In order to receive this grant, contracts must be entered into before construction of the apartment complex commences (Stage 1).
For First Home buyers, this extendeds further, including the Off-the-Plan Stamp Duty Concession of up to $15,500, and the First Home Owners Grant of up to $15,000 for new residential property. This means that First Home Owners buying a new apartment could look to save as much as $40,500.
Land Tax exempt for 5 years
Apartments that are purchased off-the-plan will be exempt from any land tax that may be payable on the apartment for the first five financial years after purchase. It applies to contracts entered into between 22 June 2017 and 30 June 2018. The exemption will no longer apply if the apartment is sold before the end of the five year exemption period, and this also isn’t available to foreign purchasers.
This means for existing home owners they could save up to $25,000 with just purchasing an off-the-plan apartment, for First Home Buyers, saving up to $40,500 is some serious money back in their pocket, and this doesn’t even include the land tax exemption for 5 FULL FINANCIAL YEARS! If that isn’t incentive enough to go and buy an off the plan apartment, I don’t know what is!
Adelaide is just bursting with potential at the moment with builds and new apartment complexes popping up all around the City and its outskirts. With developments like the Eclipse Apartments in Prospect, to the 354 Bowden or The Artisan Bowden, off-the-plan apartments are fast becoming some of the most economical purchases in fantastic locations.
You can check out some of the off-the-plan apartments that are being developed in Adelaide here.
If you require any assistance with purchasing your first off-the-plan apartment, or you would like to know your stamp-duty deductions or have your contract looked over, please don’t hesitate to contact us here at Tuckfields, we have dedicated specialists for your purchase.