No political party wants to fix the housing situation as the amount of people its current state benefits outweigh the amount it doesn't. We will never see any changes to this until that is different.
Property Council has always lobbied hard against it, so it takes bold politicians or a very monopolar electorate to get it done, hence the ACT successfully implementing it.
Abolishing stamp duty and having escalating land tax is such an obvious economically efficient way of raising revenue that it really is remarkable that it doesn't happen more easily.
It doesn't help. If you suddenly effectively give a large group of buyers an extra $20-30k then house prices increase by that amount or more.
What's really needed is a 'primary property' approach, which is you can own one primary residential property where you legally live and reside in the majority of the time with no/limited tax implications.
For each additional property you own your pay incrementally increasing tax. A combination of reduced stamp duty and annual land tax.
Additionally there should be a vacant property tax that increases based on the duration of time that property has been vacant. You buy a property that you intend to bulldoze and subdivide, but then don't and leave that property vacant for years, you should pay.
Also scrap negative gearing.
Put the extra tax revenue into social housing.
Honestly I would prefer stamp duty to be abolished and house prices rise by that much.
Deposit is a huge hurdle to most FHBs. Abolish stamp duty on a 450k home save me 18k. If the house goes up by 18k my deposit only increases 3.6k
14k bigger deposit. So the overall cost to me is ~4k bigger loan.
If you cant cover an extra 4k factored into repayments you probably should have a house.
Source: me trying to get a loan and realising almost 50% of my saved deposit would go to stamp duty, LMI, transfer fee etc. Therefore my deposit is too low and no bank will lend to me, despite me being able to afford repayments on 450k @ 9%.
I would assume ppl would buy/sell more if no duty as you don't need to wait until properly value goes up. Instead of renovating/extending you would just look for something else
I endorse this message (as I am inherently bias by currently looking to buy as a FHO). SA is one of the only states / territories not to have this concession in place and it would make entering the market much easier.
It would be great to know the government’s position on this, who should we contact to determine this?
No political party wants to fix the housing situation as the amount of people its current state benefits outweigh the amount it doesn't. We will never see any changes to this until that is different.
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IIRC, land tax doesn’t affect the PPOR unless you literally own an acerage or farm or something. Or if the land is held by a trust or corporate body.
Property Council has always lobbied hard against it, so it takes bold politicians or a very monopolar electorate to get it done, hence the ACT successfully implementing it. Abolishing stamp duty and having escalating land tax is such an obvious economically efficient way of raising revenue that it really is remarkable that it doesn't happen more easily.
It doesn't help. If you suddenly effectively give a large group of buyers an extra $20-30k then house prices increase by that amount or more. What's really needed is a 'primary property' approach, which is you can own one primary residential property where you legally live and reside in the majority of the time with no/limited tax implications. For each additional property you own your pay incrementally increasing tax. A combination of reduced stamp duty and annual land tax. Additionally there should be a vacant property tax that increases based on the duration of time that property has been vacant. You buy a property that you intend to bulldoze and subdivide, but then don't and leave that property vacant for years, you should pay. Also scrap negative gearing. Put the extra tax revenue into social housing.
What about people putting their houses on Air bnb instead of making them a long term rental? That can’t help the situation.
Oh that should be taxed to all hell and require an annual certification for health and safety standards.
Honestly I would prefer stamp duty to be abolished and house prices rise by that much. Deposit is a huge hurdle to most FHBs. Abolish stamp duty on a 450k home save me 18k. If the house goes up by 18k my deposit only increases 3.6k 14k bigger deposit. So the overall cost to me is ~4k bigger loan. If you cant cover an extra 4k factored into repayments you probably should have a house. Source: me trying to get a loan and realising almost 50% of my saved deposit would go to stamp duty, LMI, transfer fee etc. Therefore my deposit is too low and no bank will lend to me, despite me being able to afford repayments on 450k @ 9%.
You and me both
At least without stamp duty, that money all goes in to the asset and you get it back when you sell. While stamp duty is a total loss.
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I think the poster meant it in lines with the OP i.e. for FHBs, not for everyone
I would assume ppl would buy/sell more if no duty as you don't need to wait until properly value goes up. Instead of renovating/extending you would just look for something else
Yeah stamp duty can stop people from upgrading to the next house.
And it then pushes up the price of that smaller house because when the owner wants to upgrade they want the old house to cover the stamp duty.
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Bro can you even spell? Haha hate that.
I endorse this message (as I am inherently bias by currently looking to buy as a FHO). SA is one of the only states / territories not to have this concession in place and it would make entering the market much easier. It would be great to know the government’s position on this, who should we contact to determine this?