Abbotsford: Real Estate Institute of Victoria buy former Centrelink site for $10m
The REIV has purchased the site at 617 Victoria St, Abbotsford.
The Real Estate Institute of Victoria is facing a commission-crushing $1.6m-plus tax bill after buying themselves a $10m new home.
The REIV will be shelling out $630,000 in stamp duty just days before changes to the tax for commercial property take effect.
There will be a further $1m in GST applied to the purchase of 617 Victoria St, Abbotsford — the former home of Centrelink — when it settles in June.
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The Institute declined to discuss the finances or tax implications of their recent property moves, including the about $26m sale of their current home at 335 Camberwell Rd, Camberwell, in December last year.
But they did note that in planning for the use of left over proceeds from their sale there will be a portion of money set aside for an undisclosed amount of capital gains tax, accrued as the property soared in value from when they purchased it in the late 1980s.
The REIV will be shelling out $630k in stamp duty on the purchase.
The office used to be home to Centrelink.
The REIV declined to discuss prices or stamp duty, but have made a submission to the state government’s budget calling for “better management of state revenue by reducing reliance on inefficient taxes like stamp duty”.
However, in their submission to the Victorian treasury they welcomed a decision to transition away from stamp duty for commercial and industrial property, and called for major reform for the tax relating to housing which they believe could boost housing supply.
The commercial property transition will effectively grandfather the tax from July 1 this year, with the Treasury website noting a new Commercial and Industrial Property Tax, which will account for 1 per cent of the property’s unimproved land value, will apply instead.
Stamp duty will still apply to the first transaction of a given property after July 1, but be abolished thereafter. The CIPT will start 10 years after the first eligible sale of a property from July 1.
Room for a meeting of many.
Gorman Commercial’s Peter Bremner worked on the Abbotsford sale alongside Joseph Walton from Allard Shelton.
Mr Bremner said the REIV had particularly appreciated the properties 52-basement carparks, a rarity in the inner suburbs.
A REIV spokesperson said they had yet to finalise plans for investing the remainder of funds from the purchase, but after paying capital gains tax they would look to equip their future home with “the right mix of technology to improve our communication and engagement with members online”.
“This technology investment is part of a broader REIV initiative to improve the overall digital experience of members,” they said.
The kitchen space.
Ample parking.
“The REIV has invested significantly to make all real estate qualifications available online, supported by REIV- trainers in addition to face-to-face classes.”
A new website for the Institute will be launched later this year and has been billed as providing further innovation.
The spokesman added that they had sought a new home in Abbotsford as a more central location to make accessing in-person training for members easier.
Developer ANGLE has purchased the REIV’s current Camberwell home, which is expected to be developed.
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