London, UK (PRWEB) October 4, 2008
For property buyers looking to invest in Australia, Melbourne and the state of Victoria are the places to get the best value out of off-plan investments. Research conducted by investment specialists, Australian Investment Property, reveals that Victoria has by far the most attractive stamp-duty regime. No other Australian state offers such massive incentives to buyers who purchase off-plan.
The team behind Australian Investment Property UK have been comparing the taxation regimes across Australia. For off-plan buyers, Victoria and the city of Melbourne are clear winners. For example, the differences between Victoria and New South Wales mean that buyers can obtain a house and land package in Melbourne for around AU$ 120,000 less than they'd pay for an equivalent property in suburban Sydney.
The stamp duty rules in Victoria are unique. To encourage overseas buyers to invest at an early stage in the project, the Victorian government has tied stamp duty to the value of what's on the ground at the time of purchase. A finished building obviously attracts stamp duty at the full rate, whereas an unfinished one qualifies for a discount. And the less work that has been done at the time of purchase, the bigger the discount.
To qualify for the maximum discount, buyers should invest before the diggers have turned the first sod. At that point, the real estate to which stamp duty applies is purely the value of the unimproved ground. As building work progresses, the real estate value increases pro rata, as does the stamp duty. The message is simple: those who want to maximise their investment in Australian property should buy off-plan in Melbourne and Victoria. The difference in stamp duty between buying off-plan and finished new-build properties can be as much as AU$ 250,000.
Several other factors make Melbourne supremely attractive to property investors. The city has a tenant-neutral rental market, which is why private rentals provide much of the city's housing. Despite being Australia's second largest city, the pace of life in Melbourne is slower and the quality of life higher. Melbourne has traditionally been 20-25% more affordable than Sydney, which makes it a magnet for immigrants looking for a property bargain.
Property investors who want to take advantage of the Melbourne effect should visit the Australian Investment Property website, where they'll find plenty of off-plan investment opportunities. To find out more, visit http://www.australianinvestmentproperty.co.uk