A Blackburn auction that ground to a halt $3000 short of a $2m sale could be a sign buyers will put the brakes on to avoid Victoria’s new 6.5 per cent stamp duty rate for luxury homes.
A five-bedroom mid-century modern home at 30 Alandale Court, Blackburn, had four bidders contesting it, most of them still in the running when it hit its $1.85m reserve.
But Woodards Blackburn auctioneer Cameron Way came up short of a personal goal to coax the home past the $2m mark when bidding dropped from $5000 increments to $1000 rises at $1.99m.
Despite another six bids the home topped out at $1.997m — $147,000 above its reserve.
Since July 1 homebuyers pay a new 6.5 per cent stamp duty rate for every dollar they spend above $2m.
“I didn’t check with the purchaser, but I’m sure we will see some reluctance at this level,” Mr Way said.
“It’s early days to say whether it will hold people back, but if the price went to $2.1m you would be paying extra stamp duty — and that’s not a great thing.”
Repeated calls for the buyers to trump their competitors by jumping to the $2m mark were ignored.
The home’s sellers were still thrilled with the result which will help fund an upsize to a nearby suburb slightly further out.
The purchaser, a family with high-school aged kids, were also from the local area.
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