Buy Berwick before the Stamp Duty gets Heavy

With the Victorian government poised to more than double the stamp duty paid on investment properties, this is a great time to buy in the fantastically located growth area of Berwick. 

The Victorian government has recently announced that from July 1 2017, there will be extra stamp duty to be paid by property investors, who will also lose the off-the-plan stamp duty discount they had previously enjoyed. The difference is significant. For a new property purchased for $500,000, the stamp duty will more than double from $11,570 to $25,070. 

Centaflora is a new master-planned estate being built in the south-eastern suburb of Berwick.  It’s very close to employment hubs such as Casey Hospital and Monash University, as well as 5 mins to Berwick Station, and 40 minutes to the CBD by train, or via the Monash Freeway. There are great schools in the area, as well as shops, restaurants and supermarkets. 

The estate itself is planned and features open spaces and outlooks onto the Berwick Wetlands. Of the 50 properties being constructed only 9 will be available to investors, ensuring that the estate will have 82% homeowners ¬ – we usually consider 75% as excellent. 

Pfeiffer Property currently has access to one of these 9 properties. It’s a single-level three-bedroom, two-bathroom double garage property on an easy to maintain 296m2  block. This is an affordable opportunity to get into the Melbourne market for $500,000 with an estimated rental yield of 4.2-4.5% ($400-430pw).  The property is also suitable for those with self-managed super funds.  

The project isn’t due to be completed until June 2019. A deposit of $50,000 is required, with the rest to be paid upon completion. By doing this, investors will also escape the massive hike in stamp duty.  This property will be gone by 1 July, so if you’d rather spend money on something other than stamp duty, why not give us a ring today.