Property

Hip pocket hit by stamp duty

STAMP duty relief has been revealed as the key factor to help the housing industry rebound from near historic lows in 2013, a national survey has found.

The survey by mortgage broker Loan Market which asked "what action can the government take to stimulate the housing market in 2013" found an overwhelming majority of 55% of respondents citing stamp duty relief as the key to a strong 2013 for the housing industry.

Sunshine Coast Loan Market mortgage broker Carol King said the survey of the 450 Australian mortgage brokers showed, that while stamp duty charges differed from state-to-state, the tax was a considerable obstacle for consumers looking to purchase an established home.

"Stamp duty serves as an important source of revenue for state-based governments looking to create balanced budgets, but in many cases this tax can erode a significant chunk of a home buyer's savings and sway their buying intentions," Ms King said.

"What stamp duty often does to consumers is reduce their deposit level so that they end up in Lenders Mortgage Insurance territory and have to pay an additional cost to establish the loan."

Ms King said most lenders don't charge LMI if you have a deposit of at least 20% of the property price, however, in many cases stamp duty charges were reducing deposit sizes so that the consumer must pay the insurance that protects the lender if the client defaults on their loan.

"If you act at the right time, you can save a significant amount of money that can allow you to pay your home off faster."

Ms King said a range of stamp duty concessions were available for consumers who were purchasing their first home, building or significantly upgrading an existing dwelling.

"In every state first home buyers have some type of concession that helps them avoid this cost, however, for those looking to purchase their second home or an investment property this is an unavoidable cost," she said.

"With the RBA interest rate reductions in 2012 having a minimal impact on the housing industry it may be necessary for state-level governments to look at making further concessions to stamp duty charges so that housing sector can rebound."

Ms King said that those buyers looking to save extra money on stamp duty or receive a government grant should keep a close eye on the legislative talks of their respective state governments.

"Changes to grants and concessions do not happen overnight so it's best to be well researched on what policies are being discussed," Ms King said.

Ms King said that a mortgage broker was well placed to offer the latest news on stamp duty and home owner grants as well as find the right home loan for a borrower's personal circumstances.

 

The Survey Results:

What action can the government take to stimulate the housing market in 2013?

a) Create more stamp duty relief - 55%

b) Lower property taxes - 10%

c) Reintroduce or amend state level grants - 32%

d) Release more land for home construction - 3%

 

For more on finance in property, pick up your copy of Domain free in Saturday's Sunshine Coast Daily.

Domain: find what you are looking for here

 

 

Topics:  finance, housing, market, property, rates




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

'I apologise every day that I am not the person he married'

My battle with postnatal depression...

'My husband lasted 6 weeks as a stay at home dad'

APN Hey Mummy Feature for online - stock images. Katie Dykes being interviewed for the webisodes. Photo Marc Stapelberg / The Northern Star

FROM the outside, being a stay at home mum looks like a breeze.

THE EXPERT: Stop judging working mothers

SUPER MUMS: Being a working mums comes down to perfecting time management.

"WORKING for money is all right; so is working because you want to.”

Health and nutrition with kids - how do you balance it?

HOW important is health and nutrition in your household?

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Technology and kids: Do you ever cut their wi-fi?

Check out our new video series featuring mums having a chat

UPDATE: Car v house a lucky escape in more ways than one

QFAS, the QPS and QAS respond to an accident where a learner driver is believed to have reversed into a neighbours home at around 2.45pm on Tuesday June 28, 2016.

Lucky escape for a learner driver in Gympie

One third of young mums smoking during pregnancy

A smoker enjoys a cigarette in Sydney, Tuesday, May 3, 2016. The cost of a packet of cigarettes could rise to $40 after Finance Minister Mathias Cormann confirmed the Federal Budget would contain a 12.5 per cent annual increase in tobacco excise over the four years to 2020. (AAP Image/Dean Lewins) NO ARCHIVING

Young mums still not getting the message

Scam warning: Fake Energex workers door knocking in region

Energex warns residents to ask for identification

Latest deals and offers

Concern over Smerdon Rd high-density development

Mick Curran talks about the community's concern over the project which was approved...

Dash Cam of Slip in Snow

Even light snow can be hazardous.

Dash cam shows how easy it is to lose control in even light snow.

Chaos outside Istanbul Airport

Turkish police block the road after an suicide bomb attack at Ataturk Airport in Istanbul, Turkey, 28 June 2016. At least 10 people were killed in two separate explosions that hit Ataturk Airport.

Distress as cars escape Istanbul airport after bombing.

Burnett Heads housing development approved

COUNCIL APPROVED: A Burnett Heads housing development has been approved by Bundaberg Regional Council. Photo Contributed

Councillors approved the development seven votes to four

Three bedroom, 1100sqm block: Is this Qld's cheapest home?

BARGAIN BUY: Is this North Bundaberg property the cheapest home in Queensland?

Becoming a real estate mogul is all about risk and reward