Stamp Duty rebates of up to $50,000 for buyers purchasing apartment and units in Perth are to be given by the Western Australian government to boost Perth property market, Western Australia Premier Mark McGowan announced on the morning of Oct. 23, 2019.
The announcement comes after various property groups have formed an alliance to demand changes in the real estate market. The rebate is expected to stimulate Western Australia’s struggling residential property industry and construction sector, as well as create jobs.
Stamp Duty Rebates
Effective immediately, the rebate will be available for the next two years to any homebuyer and property investor who signs a pre-construction contract to purchase a residential unit or apartment in multi-tiered property development.
Applicants may avail of multiple rebates. That is, if you purchase multiple properties, you may avail for yourself multiple stamp duty rebates.
The rebate will also apply to Transfer Duty and Foreign Buyers Duty. The scheme is estimated to cost the Western Australian government’s budget $29 million.
Huge Reduction in Property Price
The stamp duty rebates will also be made available to first home buyers in Western Australia who currently already receive stamp duty assistance. So, a first home buyer looking at an apartment worth $450,000 would only pay $3,800 in duty due to the stamp duty assistance, but the rebate will reduce this payment further to only $960! Perth and WA property prices as a whole have been dramatically reduced by stamp duty rebates.
Stamp Duty Rebates Exactly What Perth Property Market Needs
Western Australia Premier Mark McGowan said the rebate is exactly what Perth and the regional cities need as it will create jobs and ensure people can live in close proximity to their jobs and other social opportunities.
Similarly, property council executive director Sandra Brewer believed it gave houses and apartments a fair shake. In the past, stamp duty only applied to the land for house and land packages. Now buyers of house and land packages on the outskirts of Perth, and apartments in the inner cities can take advantage of stamp duty rebates.
The sentiment is shared by the Housing Industry Association, the Urban Development Institute, the Real Estate Institute of WA, and the Master Builders Association.
The stamp duty rebates are likely to boost not just Perth property market but also promote the construction sector.
If you’re thinking of getting into the Perth property market, now is probably the best time to do it while stamp duty rebates are in effect.
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