Is Victorian Stamp Duty Concession Applicable to Display Homes?

Lpram on 18/01/2022 - 19:28
Last edited 18/01/2022 - 19:46 by 1 other user

Can anyone help me to understand the Stamp duty (VIC) for display homes. According to SRO, the new homes are entitled for around 50% concession. Is this applicable for display homes?

And I could see the definition of New home has been changed from Dec 2020.

For contracts signed on or after 16 December 2020, a property will not be a new home if the person who built it lived in it, leased it out or used it for short-term accommodation even if it is the first sale. A new home can be a home that is substantially renovated or a home built to replace demolished premises.

And also, is there any hidden charges or anything that need to be considered.

Appreciate your help!

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  JimmyF on 18/01/2022 - 19:32

  Is this applicable for display homes?

  Display homes are like demo cars….. Someone else owned it and used it before you. So can't see any stamp duty savings applying.

  That said, give the SRO a call and see what they say.

  • 

    Quantumcat on 19/01/2022 - 07:22

    -1

    It says lived in it, leased it out or used it as short term accommodation. A display home has done none of those things. I reckon it would count for the stamp duty concession.

    • 

      JimmyF on 19/01/2022 - 09:14

      I reckon it would count for the stamp duty concession.

      I reckon you're just guessing like me too. So as I said the OP needs to call SRO to confirm.

      A display home is used for commercial purposes. So been insured, had rates paid etc, so the OP isn't the first owner. Someone has owned it, paid insurance, rates etc on for it many years. They don't let you just build a display house and let people come and go for years on end for 'free'. Councils and state govs want their money!

      • 

        Quantumcat on 19/01/2022 - 11:11

        -1

        They've outlined the specific circumstances that mean it counts as not new though, and a display home isn't any of them. Why would they spell it out if they don't use what they've written?

        • 

          JimmyF on 19/01/2022 - 11:35

          @Quantumcat:

          They've outlined the specific circumstances that mean it counts as not new though, and a display home isn't any of them.

          Stamp duty savings only apply to NEW homes. Display homes are NOT new. The builders even say so themselves under the con/drawback sections.

          https://www.dennisfamily.com.au/investment/pros-cons-buying-…

          https://hotondo.com.au/blog/display-homes/should-you-buy-a-d…

          Anyhow SRO lists this

          https://www.sro.vic.gov.au/news/definition-new-home-has-chan…

          a property will not be a new home if the person who built it lived in it, leased it out or used it for short-term accommodation even if it is the first sale

          A display home sale normally comes with a leaseback clause, and I think you'll be pushing up hill to claim a display home wasn't classed as 'leased out' during its 3-5 years being used as commercial sales premises. Someone had to 'own' the building during this time, you can't allow the public to wonder through a building site ;)

          If only there was some place the OP could call to get the 'truth' to this question…. Rather than asking random people on the internet who are making it up to what they THINK it should be.

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  pharkurnell on 18/01/2022 - 20:10

  And also, is there any hidden charges or anything that need to be considered.

  Always.

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  ihbh on 18/01/2022 - 20:15

  If no commission were payable, then just about every seller would "display" their property and split the savings in stamp duty with the buyer.

  • 

    thehub on 19/01/2022 - 08:47

    +1

    Not sure what you're getting at.

    The question that the OP is asking relates to whether a display home qualifies as a "new" home.

    Sure, other sellers can "display" their homes (as you put it), but it doesn't have any bearing on whether it's a new home or not. A buyer still has to consider whether the property has been lived in or leased out.

    • 

      ihbh on 19/01/2022 - 12:32

      Sorry, wasn't aware of Vic specifics.

      Also meant commission -> stamp duty.

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  thehub on 19/01/2022 - 08:50

  I can't help you with a definitive answer, but I came across this article which suggests that a display home doesn't qualify.

  https://www.ibuildnew.com.au/blog/home-design/buying-display…
  "Buying a display home comes with the drawback that you have to pay stamp duty on the total value of both the house and the land."

  • 

    thehub on 19/01/2022 - 10:32

    +1

    Actually, having re-read that article, it's probably of little value. The writer is probably just thinking from a high level point of view and not really taking into account any possible concessions. Ignore what I said.