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



Learning the tools of the trade

Shadow Minister for Employment and Workplace Relations Brendan O'Connor MP today joined local Federal Member Milton Dick MP at WesTec Trade Training Centre in Springfield to discuss local skills and training. L-R: Woodcrest SHS Principal Pat Murphy, Harry Cooper, Corey Mulholland, Kenau Seluka, Kobi Tupai, Pathways Officer Tegan Wolhuter and WesTEC Manager, Alfio Balsamo.

First-class facility providing real futures for local students

Car hits three children, adult outside busy school

THREE children and one adult have been struck by a car

5 reasons you're tired of Domino's, according to Domino's

Pineapple on pizza is not one of them, oddly enough.

Local Partners

Show legend returns to post after being run over by float

FOR absolute total dedication to the Ipswich Show look no further than 85-year-old Kalbar farmer Syd Haag.


Paddinton Bear is coming to Ipswich

IN TOWN: Annette Kitching plays the part of Paddington Bear in The Cute Little Bear From Peru at the Incinerator Theatre.

FAVOURITE children's character set to delight in new show

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

IPSWICH SHOW: What's on at the showgrounds today

Ipswich Show 2017. Sasha Bondzulic and Kirra Peel.

THE show fun continues today with plenty of rides, games and stunts

The Voice is just the beginning for Ipswich dad

BELLBIRD Park singer Arthur Bristowe vows to continue his year of music after performing John Legend hit in knockout round.

Hervey Bays to star in international horror flick

Cage Dive, written and directed by Gerald Rascionato, is now screening in the United States of America. It had scenes filmed in Hervey Bay.

And our visiting humpback whales also make appearance.

Cher, 71, and Celine Dion wow world at Billboard Awards

“I’m 71 yesterday and I can do a five-minute plank, OK.”

Judah's return to The Voice stage is a knockout

Judah Kelly performs during his knockout round on The Voice.

QUEENSLAND singer nails Adele hit.

Wentworth star Daniielle Alexis: "I was born a boy"

Wentworth star Daniielle Alexis has revealed she was born a boy

Dwayne Johnson, Tom Hanks announce White House bid on SNL

Dwayne Johnson is “officially” running for president in 2020

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

The face of the Sunshine Coast's overpriced rental crisis

Alyx Wilson had to rent a $385 unit in Currimundi because the market was too competitive for cheaper rental housing. She is now renting a room from friends who own a house in Currimundi, and says its much more affordable.

Young people feel the strain in competitive, expensive rental market

WATCH: Take a tour of a tradie's dream home

5a Bruce Hiskens Court, Norman Gardens, going for $720,000. INSET: Lea Taylor.

Huge block with potential for anything

Deputy Premier makes massive call on controversial sand mine

Aerial view of the proposed Forest Glen sand mine.

BREAKING: State Government makes huge call on Coast sand mine plans

REVEALED: The worst places to rent in Ipswich

SEE if your suburb makes the list

Works to start on club's $13.8M expansion project

KICK OFF: Rohrig managing director Glenn Rohrig and Brothers chairman Greg Walsh at the official signing for the $13.8 million Brothers Leagues Club expansion.

It will create 120 jobs during construction and 30 permanent jobs

Ready to SELL your property?

Post Your Ad Here!