Starts from last Sat, 3rd April.
“Heard on ABC radio that mini bugdet will make stamp duty payable on the sale of investment property.”
Ohh, I feel a NZ real estate boom coming on even more so now.
To derive positives you have to put on your socialist cap and see the equality it brings in allowing low income earners access to the residential property market.
However the flaw here is that we are only talking about lowish income earners on the borderline of buying residential property, NOT seriously underprivileged people.
They are in no more need of a tax break than you or me who has probably just saved harder and worked harder to get to where we are. It won’t kill first home buyers to save for another 6 months to cover the stamp duty, especially in a fairly stagnant market. In fact that is basically what I have just done.
Also because I want what I consider an average house in an average suburb in sydney I am spending more than 600,000. What a ridiculous cap $500,000 is.
Or maybe I’m just being selfish…..
Do you guys think this will push property
price even higher? Vendors need to take into
account of stamp duty when they decide the selling price.Redlilia
I’m hoping in the short term it means some quick fire sales. I have been trying to negotiate for a property for about 6 weeks. This may help it over the line for me.
In regards to increasing costs, it will surely make sellers rethink their prices but wether they get the extra 2% they want is a different story.
‘Eat rich food, barbeque a yuppie’ [greedy]
Detail:
*Owners of investment property will pay a stamp duty of 2.25% upon the valoe of the properyt when it is sold. This measure does not apply to a person’s principal place of residence or to farms. To ensure that only property profits are being taxed, properties will be exmpt from the duty in cases where the vendor’s sale price does not exceed 12% of their original peruchase price.
*Currently a tax applied to owners of homes with a land value of 1.97M or more, this arrangement will be abolished and in future the Premium Properyt Tax will be applied as a marginal stamp dute rate of 7% on that peart of the value of the properyt that exceeds $3M.
Errr I think you still need to pay stamp duty even with purchase price less then $500,000.
It’s only benefit for the FIRST HOME BUYERS which can wave off the stamp duty with a purchase price less then $500,000.
which I think the benefit for first home buyers around $18K.Just to clarify, does this mean we pay stamp duty upon purchase AND upon sale? or only upon sale?
kay henry
For an IP or if it is not our first home, we pay both ends.
‘Eat rich food, barbeque a yuppie’ [greedy]
Here’s some of my hit predictions of a few implications:
* a drop in flips
* buy and hold forever -> less properties on the market -> increasing demand for IP’s. Either that can be made up by new stock. Older, more affordable stock will increase in price for those new to the market who can’t afford the new stuff.
* less stock on the market may lead to a lack of interest in RE in the community generally. Maybe investors will be able to benefit from a flat market.What do other people think?
kay henry
MMM then there is bracket creep..
Any new tax will be passed on to the consumer. As well as the higher building costs associated with the new workcover rules comming into effect. This will make it harder for first home buyers to get into the market.
If this is the excuse from Bob Carr (make it easier for first home buyers) to why he is introducing the new tax then it is flawed as is most of his failed management.
If they had sound management they could recoup the budget blow out and turn it back to black without any new tax.
Luckily our Premier invests in New Zealand ……[baaa]… he doesn’t have to worry about any stamp duty taxes on purchase or sale. This maybe the way to go ?
raising taxes by any means just ebcause you cant do your sums, or because you really dont know where it all want, which boils down to the same thing….stinks.
Forget providing the infrastructure, or services, they have failed miserably in that regard. Outsourcing? cutting costs, isnt the way to go either.
I recall the 3×3..you know roads and all that…I recall GST being introduced to overhall the tax system, trouble is, they didnt finish the job. Why still have stamp duty? Why increase it for certain groups? Why ask people to fund their own retirement? why slug people on their super, not once mind you, talk about double dips!
Why enforce super? Oh right- to help when this aging population can no longer sustain itself once it retires? Well there wont be pensions, so this will hit the mum and dad investors, the young and the not so young, they force you to take action, you do and now they rub their grubby little hands together saying GOT YA! you sell we sting you, you hold we sting you, cause land tax will get you, you buy in other states, it makes no difference, they will have their little grubby hands their too.
I pay far more than most people already, so the way I see it, you get penalised, the way I see the ones on benefits, man you got it made! The govt keeps you, helps you gives you this that and the other….you dont have to work or save, like some investors doing it tough to better themselves. I know we have choices, and I wouldnt want to be on benefits. But where is the incentive, after all I house three people on benefits, guess the government would be happy to find them alternative accommodation if the time comes that I have to sell…or want to.
SHort sighted politicians, rort of tax in the so called attempt to provide services etc..well they cant have their cake and eat it too…..
oh I get mad! lol
Sorry I ahve rambled but it gets me blood boiling.
” a blind man may see what a sighted man may not”
for first home buyers… no stamp duty is a major saving though… there is little more than the deposit left to pay considering the $7000 grant also
glad I waited a little [biggrin]
oops… investors forum… *runs away and hides*
Jack, you’re right. I don’t have my own PPOR, but I might be able to afford it now
kay henry
Errr I dont’ think you can buy cheap property. I just think that all the low price range proeprties will increases up to the $500,000 mark (since first home buyers dotn’ have to pay stamp duty and the price sure will be increase). But on the down side since properties over the $500,000 without such benefits I think that might drop specially the property between $550,000 because it’s hanging in between the stamp duty free margin.
[baaa]
I too was hoping it was all a bad joke …. might as well follow Bob Carr’s lead and buy offshore …. what incentive is there to continue investing in property in NSW considering the average medium property is now $500,000 plus …. time to sell I think and move offshore!!! In saying all this I think it is great for the first home buyers but not for those who are trying to set up for comfortable retirement.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
