The end of an era…perhaps
Commentary by Jack Brukarz
Just ten days to go before the off-the-plan scene for investors changes, possibly forever. As most of us know, from July 1st property stamp duty concessions will no longer be made available to investors purchasing off-the-plan which will add tens of thousands of dollars to the price of the average property.
This dramatic decision was largely motivated by greed and was given political spin by arguing that this will cool the (apartment) market and provide much-needed relief to first home buyers. I will not try to predict the medium to long term effect of this move and we may all have our personal opinion. Any forecast is fraught as many factors and variables come into play. So what do you do to deal with this issue?
There is not much you can do after June 30th, so if you want to buy an investment and save the duty, the decision to act must be taken now.
If you have insufficient funds in your regular cash savings to pay a 10% deposit, consider the option of buying a property in a self-managed superannuation fund. There is a multitude of benefits to consider with this course of action, far too many to discuss in this blog. And if you act quickly, there is still sufficient time to set up such a fund, if you don’t yet have one and to purchase a property before the looming deadline.
This is a one-off short-term opportunity to avoid paying additional, unnecessary taxes. If you want to know more, just send me a message and I will direct you to one of our consultants who will provide you with a no obligation, no cost, 30-minute information session.
Jack Brukarz – CEO of Motion Property