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.

UPDATE: Workers rescue woman injured in dog attack

NEW CATEGORY: Menacing dog. Photo: Thinkstock

Two dogs have been seized by the council following a dog attack

Rocks Riverside to party for annual music festival

LIVE GIGS: The band Silken Thomas will be one of the main attractions at this year’s festival.

Festival set to rock the Centenary suburbs.

Ipswich "bomb hoax" culprit still at large

Police and fire fighters are on the scene. Photo: Anna Hartley.

"Prankster" wasn't caught on CCTV, police appeal to public for help

Latest deals and offers

BREAKING: Department confirms new case of black lung

Department of Natural Resources and Mines say it's the eighth case identified since May last year

UPDATE: Workers rescue woman injured in dog attack

NEW CATEGORY: Menacing dog. Photo: Thinkstock

Two dogs have been seized by the council following a dog attack

Rocks Riverside to party for annual music festival

LIVE GIGS: The band Silken Thomas will be one of the main attractions at this year’s festival.

Festival set to rock the Centenary suburbs.

Ipswich "bomb hoax" culprit still at large

Police and fire fighters are on the scene. Photo: Anna Hartley.

"Prankster" wasn't caught on CCTV, police appeal to public for help

Mt Ommaney students riding high on new bike

TOP GEAR: Chris Cox delivers a new bike to Mt Ommaney Special School principal Susan Christensen.

Donation helps get kids riding.

Woman in court for allegedly spitting on police officer

Ipswich Police Station and Courthouse. Photo: David Nielsen / The Queensland Times

Accused one of six charged with alleged offences against police

Learn to empower business with guest speaker

Damian Morgan will exchange ideas with some of West Brisbane and Ipswich business leaders during a series of free seminars he will be holding at The Lions Richlands on Thursday June 16.

Damian Morgan to speak at business leaders seminar

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