Property developers woo buyers to profit from new VAT laws | Sunday Observer

Property developers woo buyers to profit from new VAT laws

Property developers are urging buyers to profit from the new VAT laws as all condominiums are about to go up in price soon.

After April 1, any condominium buyer will have to pay 15 percent VAT on top of the purchase price.

Director of Tamba Villas, Eduard Hempel says that if buyers move quickly, and get a deposit down and registered before April 1, they will not have to pay the VAT.

“If you put a deposit down on a condominium before the end of the month, you can immediately profit from it,” Hempel said.

“Not only that but when you come to resell, your buyer won’t have to pay VAT, so that difference in price between a new condominium and yours will be a profit to you.”

As per the budget proposals the VAT imposed on condominium housing units to be implemented with effect from 1 April 2019.

Meanwhile. the developes of Serenia, a beachfront residence project in Thalpe in a press release said, ‘those who wish to own a unique beachfront residence to make their deposits prior to March 25.’

The release said, the customers who invested in Serenia at the time of the launch of the project are already enjoying 25%-30% capital appreciation on the current price of a similar unit.

“We anticipate that at the time of completion the development will give customers who buy a unit this month , a 30-35% USD capital appreciation plus the 15% saving from the VAT, which will account for approximately a 50% increase in USD capital appreciation,” said Sabina Karunanayake.

According to the budget foreign investors will obtain Residential Visas if they invest US$ 400,000 or more in condominiums. This will be implemented this year. An up market, luxury development such as Serenia Residences will always have a very good resale value as foreign investors will be always keen on owning an asset such as Serenia Residences due to its prime location on the Southern Coast of Sri Lanka and its unique concept. Currently 65% of the buyers of Serenia are foreign nationals of non-Sri Lankan origin.

Property prices and hotel room rates in the Southern Coast of Sri Lanka have been on an upward trend over the past three years, while the rating by Lonely Planet of Sri Lanka as the number one country to visit in 2019 predicts that the trend of visiting and investing in Sri Lanka would continue going up in the next few years as well. 

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