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

Former Scout leader pleads guilty to child porn charges

Brock Dittman.

Brock Emil Dittman pleaded guilty to accessing child porn.

10 ways to manage exam stress

Boonah State High School students from left, Tahlia Wilson, Tess Wimmer, Natalie Milligan and Luke Pressler cram in some last minute study leading into their final exams.

Four students who are going through end of year exams offer practical advice

Is Woolworths departure good news for Ipswich CBD?

Artist impression of the Ipswich Mall for the rejuvenation project to be undertaken by Ipswich City Properties

Council is on track to release a detailed plan before December

Local Partners

Workmates honour crash victim with tribute

UPDATE: Tanya Lyell is being remembered as a young mother dedicated to her family and work as the town she called home mourns its loss.

WATCH: NASA space station is live, see the view from above

In this picture taken from NASA's International Space Station from April 2015, the SpaceX Dragon is captured with the 57.7-foot-long Canadarm2 robotic arm before its installation to the Harmony module.

See the world from a new perspective as space station passes Rocky

Artist feeds us pop straight from heart

FEED THE BEAST: Singer-songwriter Emma Dean is this week's featured artist.

Emerge's Calen Le Couteur recently caught up with Emma Dean

Your guide to a great night out in Ipswich

Dennis Knight and the Black Cats play Club Services Ipswich Saturday night

Check out some live entertainment this weekend

The Bachelor contestants find love with each other

Former Bachelor contestants Megan Marx and Tiffany Scanlon have confirmed their relationship on social media.

MEGAN Marx and Tiffany Scanlon confirm relationship on Instagram.

Liam Payne wants to wed Cheryl Fernandez-Versini

Cheryl Fernandez-Versini and Liam Payne

Liam Payne reportedly wants to marry Cheryl Fernandez-Versini

Bindi Irwin 'honoured' to make MAXIM HOT 100 list

Wildlife Warrior named among Australia's most beautiful women

Len Wiseman files for divorce from Kate Beckinsale

Kate Beckinsale

Len Wiseman has filed for divorce from Kate Beckinsale

First look at Gilmore Girls: A Year in the Life series

Lauren Graham and Alexis Bledel in a scene from the TV series Gilmore Girls: A Year in the Life.

NETFLIX drops first trailer for its revival of fan favourite.

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Is Woolworths departure good news for Ipswich CBD?

Artist impression of the Ipswich Mall for the rejuvenation project to be undertaken by Ipswich City Properties

Council is on track to release a detailed plan before December

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?