Smart Investors Buy OFF THE PLAN or HOUSE and LAND PACKAGES.
Investors like to minimize their spending on investments. Get more for less is the way to go!
When you buy property, you have to pay stamp duty (concessions may apply in some circumstance).
Stamp Duty which is payable to the State Government is always thousands of dollars, sometimes tens of thousands of dollars, sometimes even hundreds of thousands of dollars.
In many instances an investor (or any property buyer) can reduce the amount of stamp duty they pay by buying “off the plan” or by buying a “house and land” package.
How come you ask?
Well, stamp duty is based on the contract price of the property you purchase. Here is an example.
Let’s say you buy a property and the contract price is $500,000.00
In South Australia you would have to pay a FURTHER $21,300.00 (approx.) that means that your actual cost will be over $521,000.
So what happens to the amount of Stamp Duty payable when you buy off the plan or a house and land package?
Great news! You only pay stamp duty on the value of the land.
So as an example, if the land cost $250,000 and the build component cost $250,000 for a total of $500,000; your stamp duty on the land component is around $8950.00.
Now that is a whopping saving of $12,350.00!
On top of that you can write off a portion of the progress payments for the build component and when the building is completed and ready for occupancy you have tens of thousands and sometimes well over a hundred thousand dollars of depreciation which you may “write off”.
The vast majority of our Investors choose to buy from us this way. You should too!
Please note that all the information above is of a general nature and to be used as an example of what may be achieved. It is not meant to be financial advice as we are not financial advisors.
You MUST seek professional advice as your personal and financial situation does make a difference.