If you are new to real estate, navigating the market is a challenge. Real Estate Matters seeks to help beginners gain a general understanding of what is happening and keep up with changes that might affect you as first-time home buyers and investors. In the last year, a number of legislative changes regarding property ownership and investment have emerged, and today Toni speaks with Peter Gray, Head of Sales with Planinsek Property Group, to offer a brief overview of the new regulations as compiled by the property law experts at KCL Law.
Toni and Peter begin with the new rules around stamp duty and their impact on first-time home buyers. The also cover off-the-plan stamp duty concessions, explaining what the changes mean for purchasers of non-residential developments versus buyers eligible for the principle place of residence concession.
They also address what is perhaps the most perplexing of the legislative changes, the new vacant residential property tax or VRPT, which levies a tax on residential properties in certain areas of Melbourne that are vacant for six months or more. Toni and Peter talk through how the tax will be calculated and argue the feasibility of enforcing a policy that requires self-reporting.
Toni and Peter conclude with a discussion of the changes to GST for home buyers purchasing newly constructed residential properties, and the government’s ongoing efforts to prevent the practice of underquoting. Listen in to hear Peter’s assessment of the current market as well as his prediction of what Spring has in store—and how the new legislation might impact the real estate market.
- How the rules around stamp duty are changing
- How stamp duty changes are affecting the market
- The new regulations regarding off-the-plan stamp duty concessions for non-residential developments
- How developers are reacting to the new OTP stamp duty concession parameters
- Why the new OPT stamp duty rules may put off investors
- The new vacant residential property tax (VRPT)
- How VRPT will be calculated
- The exemptions to VRPT
- The feasibility of enforcing VRPT
- The changes to GST for new home buyers
- Why ATO implemented changes to GST protocol
- The rules in place to prevent underquoting
- The problem with letting agents choose the three comparable property sales
- The benefits of choosing appropriate comparables
- The penalties to agencies for underquoting
- The unpredictability of selling at auction
- Peter’s assessment of the current market and predictions for the Spring
Learn More About Changes to Property Law
Access the KCL Law newsletter outlining legislative changes around ownership and investment at http://www.kcllaw.com.au/news/property-law-update-the-times-theyre-a-changin/.
For additional information about the areas affected by VRPT, see http://www.vic.gov.au/affordablehousing/buying-a-house-in-victoria/re-balancing-the-market.html.
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