firstone Posted 18September, 2014 Report Share Posted 18September, 2014 Such high stamp duty costs in this country are stifling the real estate market. I believe that if stamp duty were much lower ppl would be inclined to buy and sell more often as their life needs change. Wow. How novel. More sales making greater profit at lower costs. Coles n Woolies proving it well n truly. like it was a secret. The gubberment won't do it as it aids the lending authorities to monopolize. What a surprise. Your thoughts? Link to comment Share on other sites More sharing options...
webrest Posted 18September, 2014 Report Share Posted 18September, 2014 As someone who having a think about a change of lifestyle the issue of Stamp Duty is a player in the thought process. I realise that there are many younger members in PFA and this will be of no interest to them but there are others that are in the age group where it may. Denise and I are considering downsizing [a big decision] from our current home to something smaller. A large factor in the change is the amount of stamp duty we would have to pay out to change to the smaller house. We may not necessarily be be dropping back much in house value when buying and that would mean a heavy duty would affect our purchasing power. So buying off the plan became very attractive to us as new dwellings do not attract duty. However a recent conversation with a friend has revealed that there are considerations for older people, notice how I avoided using the word pensioners, No duty at all up to $330k and a sliding scale up to $750k. Extract. "From 1 July 2011 pensioners and concession card holders in Victoria will receive stamp duty concessions on properties up to the value of $750,000. Currently, the upper threshold is $440,000, a figure deemed as inadequate given today’s property prices. Properties under $330,000 will attract no stamp duty whatsoever and those with a value above that figure up to $750,000 will receive concessions on a sliding scale.The concession has also been extended to include Commonwealth Seniors Health Card holders." This tax has always been a bug bear to most and the words "money for jam comes to mind." The government has absolutely no interest in making housing more affordable when they earn more every time the the housing prices rise. It is even a better gig than speed cameras for them Anyway that is my contribution to the discussion Dave Link to comment Share on other sites More sharing options...
ByronBayChris Posted 18September, 2014 Report Share Posted 18September, 2014 Was not aware of that, Dave. (the duty bit. Not the bit that you're an elder) hanks. Link to comment Share on other sites More sharing options...
Coastr Posted 19September, 2014 Report Share Posted 19September, 2014 Wow lately the forum has been seeking out all my 'vent' button issues A tax on moving is even more ridiculous than a tax on buying anything more than a hose-out model and calling it a 'luxury' car tax. Stamp Duty is a massive drag on the economy as people stay where they are and don't move to release equity, follow new opportunities or do just about anything which might involve buying and selling. It's one reason I decided to go all-in on buying the block of land I want to keep forever, even if the house on top was no good. You can always knock the house over and build a new one without paying stamp duty. But if you move every 7 years or so, you end up way, way behind. Especially if you, like most people, finance the stamp duty as well as the purchase and so end up paying interest on the tax you already paid. However it is good to see that concessions are being made to downsizers as well as first home buyers. Now all we need is concessions right across the board so nobody pays the stupid thing. You're right in that state governments have no intention of releasing their grip on this or speeding camera revenue. And yet I know someone who worked for the state govt, took 9 months paid maternity leave, came back for a bit over 12 months of part time work, and is now preparing to go on another 9 months paid maternity leave with kid no 2. There is delight in her voice as she describes how great it is. Money for jam indeed, that's where the cash goes. Though I confess I'd rather all the state government employees were at home looking after their kids than at work coming up with more ideas to make our lives more miserable. Link to comment Share on other sites More sharing options...
ByronBayChris Posted 19September, 2014 Report Share Posted 19September, 2014 Was not aware of that, Dave. (the duty bit. Not the bit that you're an elder) Thanks. Link to comment Share on other sites More sharing options...
tazzieman Posted 19September, 2014 Report Share Posted 19September, 2014 I hear & feel the pain of the younger folk who may have trouble even starting a mortgage , and those a bit older wanting to downsize. Years ago I decided to try & escape the sheriff of Nottingham (paid my 50c/$ tax for 30 years , not a cent in welfare for my family) by retreating deeper and deeper into the forest. So in '97 we built a house only 12 minutes from the city but in the bush ; much lower rates. A house which was designed to use minimal energy and still be liveable until we are too old to drive down the hill. Thus avoiding the taxes of moving house , moving expenses and of course the social competitiveness of a neighbourhood. The privacy is wonderful & there aren't too many negatives! I doubt I'll see a large capital gain in my pocket at a viable age , but am spending the savings along the way to achieve the same lifestyle end. "You can't always get what you want , but if you try sometime you just might find you get what you need." Clear skies , room to move around , good health and a Porsche. What else could you need? Link to comment Share on other sites More sharing options...
KGB Posted 19September, 2014 Report Share Posted 19September, 2014 Wow. How novel. More sales making greater profit at lower costs. Coles n Woolies proving it well n truly. Coles & Woolies, whisky (Tasmanian version) tango foxtrot you talking about. Link to comment Share on other sites More sharing options...
Hounddub Posted 19September, 2014 Report Share Posted 19September, 2014 Whilst I tend to agree, the system in Singapore is much better if you ask me. Up here there is no stamp duty on your principle place of residence, then becomes an increasing scale for every additional investment property. There is also a very high stamp duty charge for foreigners which is currently 20%! In the end, there needs to be a way to incentivise property ownership, but the cost of investment should be more restrictive. Link to comment Share on other sites More sharing options...
Tit Posted 19September, 2014 Report Share Posted 19September, 2014 http://m.canberratimes.com.au/act-news/stamp-duty-and-rates-changes-on-the-way-in-2014-act-budget-20140527-zrpht.html Link to comment Share on other sites More sharing options...
firstone Posted 19September, 2014 Author Report Share Posted 19September, 2014 I have a young family. 52 43 28 14 11 Our family meet uncovered we all agree we would like to do the 5 acres dogs sheds n space, but for a short time like 5 years then a beach life for 5 which will likely see me and my lady on our own and the kids well grounded. I would like to buy the property so as to give stability and a sense of pride. it seems like letting our two properties and leasing the lifestyle will be a better financial decision. Imagine a young couple starting out scratching up the bucks and dreaming of stamping their mark on a property olny to find out they need to aim much lower in order to afford the stamp duty. Then finally move in, only to have a foul taste because the neighborhood aint so good suddenly. They can't resolve the issues, they can't move. Which leads me to another issue. The mortgage....It is glued to this property. Cannot be transferred to a new property, so must be paid out n start again. Stupid stupid system that seems to work for the government and the banks. Link to comment Share on other sites More sharing options...
Stew F Posted 19September, 2014 Report Share Posted 19September, 2014 We've just recently purchased a new house. Move in on the October long weekend. $23K stamp duty. That's money we could have spent on something worthwhile, like our OS holiday cruising the Greek islands. It's just another form of land tax really when they can't charge you LT on your primary residence. Link to comment Share on other sites More sharing options...
ByronBayChris Posted 19September, 2014 Report Share Posted 19September, 2014 Vic stamp duty is approx double to nsw Link to comment Share on other sites More sharing options...
Coastr Posted 19September, 2014 Report Share Posted 19September, 2014 We've just recently purchased a new house. Move in on the October long weekend. $23K stamp duty. That's money we could have spent on something worthwhile, like our OS holiday cruising the Greek islands. It's just another form of land tax really when they can't charge you LT on your primary residence. It is a land tax, paid up front. If the state governments can't run themselves at a lower expense level (make me premier, please!) then what would be better is to phase in a yearly land tax (on top of rates) paid to the state gov. This is how most places in the US do it, and it goes on properly value. If we transitioned to a system like this, it would smooth out revenues for governments and allow people to budget in their yearly expenses rather than having to come up with a lump sum or borrow it. It also encourages use of land for productive purposes and discourages land banking (people who purchased land in the 1980s are better off leaving it vacant and speculating rather than selling and putting the money into a different property). So if we have to have property taxes, they at least should be assessed yearly rather than paid up front as an impost. You'd have to have a transitionary phase where anyone who has paid stamp duty would be exempt from taxes for x years, but it would actually work out better for everyone in the long run. Link to comment Share on other sites More sharing options...
Guest Harold Posted 19September, 2014 Report Share Posted 19September, 2014 Memory tells me stamp duty on homes totals circa $4.5 billion a year in NSW. Read it somewhere a little while ago. It was forecast to go to $5 billion in a year or two. On the other side I guess we would all agree governments need to have revenue to pay for services they provide. The debate is always what constitutes waste. We bought our current home 6 years ago and the stamp duty cost six figures but I figured there is no way around it so why worry. Link to comment Share on other sites More sharing options...
ArthurK Posted 20September, 2014 Report Share Posted 20September, 2014 Stamp Duty and Payroll Taxes are the biggest scams the States governments have up their sleaves.............. Link to comment Share on other sites More sharing options...
Coastr Posted 21September, 2014 Report Share Posted 21September, 2014 Stamp Duty and Payroll Taxes are the biggest scams the States governments have up their sleaves.............. It's mental, isn't it. We all know cigarette and alcohol taxes are supposed to reduce consumption, tax something, get less of it. So let's whack two massive taxes on jobs and houses? Because we want less people in work and shelter? Link to comment Share on other sites More sharing options...
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