• Firstly, the Off-The-Plan Rebate Scheme will be expanded from next month
  • A new Keystart loan product will be launched to target areas around Metronet
  • The build-to-rent sector will also enjoy a 50% land tax concession

So, we’ve heard about the WA State Budget which has plenty of effects on the property sector, but let’s take a closer look at it shall we?

We’ll start off by the schemes announced then break it down from a buyer’s and seller point of view.

Expanding the Off-The-Plan Rebate Scheme

This scheme currently provides a stamp duty rebate of up to 50 per cent for any apartments purchased off-the-plan.

From 1 June 2022, eligible purchasers will now receive a 100 per cent rebate on the stamp duty payable for a dwelling less than $500,000, and a rebate of between 1 per cent to 100 per cent of the duty for a dwelling valued between $500,000 and $600,000, to be applied on a sliding scale.

The scheme is still due to expire on 24 October 2023, and the maximum value of the rebate will remain capped at $50,000.

Buyers…

Are you purchasing from overseas or looking at newly developed properties? Then this will save you an extra 50% off the stamp duty that’s payable on dwellings less than $500,000.

This would mean you should be looking at apartments or townhouses that are approved for built and selling off the plan in the outer limits of the city, as most apartments within the 10km radius are above $500,000, though there is still a sliding scale applied for this.

Sellers…

Are you developing property at the moment? If you bought development sites in 2020/2021 and have DA approval then get your plans onto the market asap! This news should have more buyers seeking properties that suit the above price range and this scheme will expire in October 2023, so if you still haven’t had your approval done then use this to push it through with the local councils!

New Keystart loan product

From 1 July 2022, a new Keystart loan product will be introduced to stimulate medium and high-density housing around new METRONET station precincts.

The precise locations of the precincts are to be confirmed, but we suspect these suburbs to be Bayswater, Noranda, Morley and the surrounding precincts.

The scheme will be capped at 300 loans. It will apply to both new and established dwellings, to a dwelling value of $550,000 for singles and $650,000 for couples.

Buyers…

Please note that there is an income eligibility cap of $180,000 for singles and $200,000 for couples, but this should allow those of you who are low on deposit to access the Keystart product to enter the market before more interest rates hikes take place throughout the year.

Sellers…

Are you selling in the surrounding areas of the newly appointed METRONET projects? If so then this is your time!

Reach out to local real estate agents in the area and get your properties appraised in time for this loans to take effect in July 2022! 300 loans equates to 300 sales, so if your property is within the $550k – $650k range, then this is your signal to sell.

Land tax concession for build-to-rent sector

The WA Government has announced a 50 per cent land tax concession for new eligible build-to-rent developments from 1 July 2023.

This discount will incentivise the construction of these build-to-rent developments and assist in bringing more rental properties online in the medium-long term.

Buyers…

Are you an investor? Then if so, this concession applies to you! Make a move on land/blocks that you are build for rental purposes, which our current market truly needs at the moment.

This initiative is made to boost the rental market by increasing supply, so plan your purchase well and get in the market in time so you can plan and get your development approved by 1st of July 2023!

Sellers…

Do you have a sub dividable block? Then this is your time to get cracking on DA Applications, local councils approvals and chats with your local professional real estate agents to sell your vacant blocks.

There are plenty of “AfterPay” like services that you can use if you are low on funds that allow you to pay at settlement, so chat to your agent on how you can best make full use of this time to prepare your block for sale as you will beat the competition for those investors looking to capitalize on this concession!

There you have it, a summary of the WA State Budget and how buyers and sellers in the property market will benefit from it. All the best in your property journey!

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