Stamp duty cuts are expected to attract downsizers to a new 30-apartment housing project in a lifestyle suburb just 4km from the Perth CBD.
Developer Megara has launched The Foundry, which is located in the inner Perth suburb of Leederville - well-known for its restaurants, cafes and theatre.
Off-the-plan apartment buyers in Perth are now entitled to stamp duty savings worth up to $50,000. The tax cuts were announced by the government in October 2019, to help stimulate the State’s construction economy.
The rebate is open to buyers who sign a pre-construction contract for a new residential unit or apartment in a multi-tiered development. There is no cap on the purchase price, though the 75% saving on stamp duty is limited to a maximum of $50,000.
This announcement means a downsizer purchasing a $500,000 property will pay $4,441 under the new scheme, rather than the previous charge of $17,765.
At the top end of the scale, a property worth $1.5 million attracts duty of $18,365 under the new initiative – a significant saving of $50,000 on the $68,365 that would have previously applied.
According to Megara’s Director Jamie Clarke: “This limited opportunity to save 75% of the stamp duty on pre-construction off-plan purchases has already seen an increase in downsizer buyer activity.”
Mr Clarke said that, apart from the tax cut advantages, buying off-the-plan also allows empty-nesters to take advantage of a range of benefits.
“It gives buyers the ability to secure their preferred apartment without having to rush into the sale of their existing home,” he said. “An off-plan purchase often allows 12-18 months to prepare their home, find a selling agent, and sell or dispose of unwanted items.”
“Often downsizers are unsuccessful in securing already completed properties when their only option is to make offers subject to the sale of their existing home. This can be a frustrating and fruitless process.
“By purchasing during the off-plan phase of a development, downsizers have a better selection of apartments and will be able to secure their ideal location within a building in terms of outlook and solar orientation. Off-plan purchasers also can choose their preferred finishes and there is sometimes scope for minor customisation of their apartment.”
Boutique in size with only 30 apartments, The Foundry will be completed in mid-2021. It offers a choice of one, two and three bedroom apartments plus penthouse designs, and is designed for downsizer living, with larger than average apartments featuring full-size kitchens, abundant storage, spacious living areas and generous balconies.
Many of the apartments will have a northern orientation, while others will have magnificent city views.
“We have focused the design on capturing sweeping city or northern views as each apartment aspect dictates,” Mr Clarke said. “Individual floor plans are entwined with a highly customised approach, for a seamless transition between indoor and outdoor living zones.”
The Foundry will also have a high level of security and the convenience of a central lift. Most apartments have two car bays, with visitor parking also available.
Minimal common facilities at The Foundry are expected to result in lower strata levies.
This is supported by a number of green initiatives including solar panels, performance glazing throughout, and water/energy efficient appliances and plumbing fixtures.
Apartments in The Foundry have a variety of price points. Single bedroom homes start at $389,000, 2-bedroom from $579,000, 3-bedroom from $899,000, and penthouses are priced from $1,099,000.
Downsizing.com.au lists a wide range of downsizer-friendly properties across Perth. Search for these properties here.