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



Big ambitions: Mayor outlines bold plans for 2017

BIG PLANS: Mayor Chris Loft has big plans for the year ahead.

The key, he insists, is "using what we've got.”

Guilty plea to crashing car into Urangan home

Damage to a house at the corner of Pulgul and Miller streets in Urangan after a 4WD ran into the bedroom.

The 58-year-old was five times over the legal alcohol limit.

Married at First Sight: M'boro dad to feature on reality TV

LOOKING FOR LOVE: Farmer Sean Hollands, 35, from Maryborough will feature on the upcoming new season of Married At First Sight.

A bull riding accident put everything into perspective for Sean.

Local Partners

Hervey Bay group to do final act of kindness before closing

"It was formed mainly to assist with camaraderie among ourselves and to support local charities in the Bay.”


Puppetry of the Penis secrets revealed ahead of show

The famed Puppetry of the Penis is coming to the Sunshine Coast for shows in Noosa and Caloundra.

WARNING: This interview contains adult themes and traces of nuts

Noll meltdown won't affect Gympie Oz Day concert

Shannon Noll

Photo Contributed

Shannon Noll is still expected to perform in Gympie next Thursday

What's on: 11 gigs coming up at the Brolga

Xavier Rudd will be performing a benefit concert at the Brolga Theatre on January 21.

There's a gig for everyone with lots happening in coming months.

Your chance to drive like Magnum P.I.

Tom Selleck in Magnum P.I. with his trusty 'side-kick' Ferrari.

FERRARI that appeared on classic detective show goes to auction.

Ocean Sleeper discuss being 'Six Feet Down'.

Ocean Sleeper make waves with their new EP. Photo Contributed

Gippsland band shines at Unify

Bowie's final music EP No Plan released

NEW: Artwork for David Bowie's posthumous 2016 EP, No Plan.

David Bowie's 28th and final album

Married At First Sight: Ipswich bachelor seeks love

READY FOR IT: Ipswich man Simon McQuillan will appear on the upcoming new season of Married At First Sight.

Romance would top off recovery for Booval man

Dinky-di Denyer: Family Feud favourite hosts Oz Day party

Grant Denyer will host Channel 10's Australia Day concert from the Sydney Opera House.

GRANT Denyer shares his Australia Day traditions ahead of concert.

Chelsea Handler blames the Kardashians for Donald Trump win

Chelsea Handler pictured in a scene from her talk show in Los Angeles.

TALK show host blames rise of reality TV family for election result.

Collapsed Coast company could owe up to $5 million

Staff, ATO, landlords among those out of pocket.

Ipswich block of dirt sells for $582 a square metre

JUST SOLD: A property on the Brookwater golf course sold for a record-breaking $612,000.

Property smashed 2007 record by close to $100,000

Sunday auction for historical home

Former Catholic school sure to attract spirited bidding

Looking back, looking ahead in Noosa

NEVER-ENDING GLORY: Looking towards Laguna Bay and Hastings St from Noosa National Park.

Natural appeal of Noosa continues to attract buyers

Thousands of jobs part of $1b retirement village project

THIS YEAR: An artist impression of the new Aveo retirement village in Springfield.

Aveo Springfield unveiled this month, homes ready by July

Ready to SELL your property?

Post Your Ad Here!