First home-buyers looking to get a foot on the property ladder in the Adelaide CBD can save up to $40,500 under incentives from the State Government.
The $40,500 saving is possible thanks to three incentives now possible for off-the-plan buyers.
In last month’s Budget speech, SA Treasurer Tom Koutsantonis announced that any off-the-plan buyer who signs before September 30th this year would be eligible for a $10,000 pre-construction grant. To qualify for the grant, the value of the property cannot exceed $575,000.
In addition to the grant, there is the stamp duty concession of $15,500 and first home owner grant of $15,000 for new residential property, bringing the total up to $40,500. The maximum stamp duty concession is only available to properties with a maximum value of $500,000.
Buyers might want to get in quick though. The Advertiser reports that the $10,000 grant is expected to be allocated to 180 purchasers of property in the CBD.
According to current data from Realestate.com.au, the median house price for a unit in the Adelaide CBD is $404,825, up just over 5% from the median unit price in 2016 ($385,060).
This is slightly higher than the steady 4.1% growth in value across all Adelaide dwellings for 2016.
In the Budget speech, Koutsantonis said that a number of property developments were suffering due to poor sales, which is why the State Government had initiated the grant.
“It’s our responsibility as a state to make sure people can buy an apartment where they grew up,” he said.
For those who have previously owned a home, they will be eligible to receive stamp duty concessions and new grants totally up to $25,000.
In a move that is meant to discourage foreign investment and encourage locals to buy, the State Government has also introduced a 4% levy on foreign purchases of SA residential property. It will come into effect on January 1st, 2018.