From 1 July 2018, the ACT government abolished duty on all commercial property transactions less than $1.5 million – good news for Canberra investors!
Been thinking about branching into commercial real estate? Now could be the time.
That’s because from 1 July 2018, there is now no duty on commercial purchases in the ACT less than $1.5 million. We explore this new reform and what it means for Canberra investors.
Doing away with stamp duty
Abolishing stamp duty is part of the government’s commitment to eliminating levies that:
- Encourage less optimal housing decisions for an individual,
- Are paid only by small demographics,
- Represent an unstable source of revenue,
- Is a major financial barrier for first home buyers.
The reform will have a major impact, according to the Revenue Office, which reports that 70 per cent of all commercial transactions in the territory are less than $1.5 million.
Getting started in commercial investing
It’s important to note that commercial investing poses unique challenges for those used to managing a residential portfolio. When buying commercial real estate, finance, lease terms and purchasing procedures all function differently, so be sure to work closely with your property manager before buying.