Wednesday, June 15, 2011

Changes afoot

Hi Guys

Wanted to post this to my business page but it is down for some reason - the tecchies are working on it now. So I will regale you all with my thoughts:

This article appeared in my inbox today:

Industry slams new stamp duty legislation

Wednesday, 15 June 2011

Matthew Sullivan
"The Real Estate Institute of Queensland (REIQ) has slammed the Queensland state government’s decision to remove the stamp duty home concession.
From 1 August, the government will remove the concession which non-first home buyers receive when buying a new or established home as their principal place of residence.
In addition, the government said it would also introduce a $10,000 grant to people that are building or buying a new-build home or unit priced up to $600,000.
REIQ chairman Pamela Bennett said while the incentive to increase housing supply and create jobs in the construction sector is a positive for the economy, the removal of the stamp duty concession for non-first home buyers will wreak havoc on the Queensland property market.
“The government is obviously trying to fill the financial void that has been left by the weak property market, and the subsequent lower stamp duty receipts given the marked reduction in property sales over the past 18 months,” Ms Bennett said.
“A better way to stimulate the economy would have been to provide financial incentives for all buyers of all types of properties which in turn would have increased activity and therefore helped the government’s bottom-line.”
According to the REIQ under the new legislation, home buyers purchasing a median-priced house in Brisbane will now be hit with more than $15,000 in stamp duty – an increase of more than $7,000."

So what does it all mean:

1: get in quick and buy a house before August 1st if you are thinking about it

2: get in and buy a block of land and build a new house if you are a first time buyer and get $17000 as grant before January 2012

3: get in and buy an investment property becasue prices are down, interest rates are down and the stamp duty thing hasn't changed for you

4: if none of these apply - take some advice from "The hitchhikers Guide to the Universe" - DON'T PANIC
The reduciton in stamp duty for buyers of a Principal place of residence was introduced as a result of the GFC to help stimulate the housing economy somewhat. Australia is in pretty fair shape still and indications are that we will remain in good shape for the foreseeable future. So this in one way is an indication of that - but more importantly there will always be a percentage of the population "on the move" - stamp duty or no stamp duty this won't change. People have to move for work, family reasons, lifestyle changes and nobody is going to sit put because of this - in fact in six months time nobody will even think about it - death and taxes it comes to us all.

( the real estate daisymum)


Mrs A said...

not just another slug to the economy, it will make people think twice about changing residence and then affect how much they can spend on the actual house, it will make it more difficult for a lot of people. How are RE sales in your neck of the woods?

daisymum7 said...

Actually Mrs A things are ticking over in all price brackets in our area quite well.

Over the next 7 weeks we expect a lot of sellers and buyers to be trying to move prior to the new rates taking effect.

Then after that I woulod expect the post end of financial year lull to be a bit longer perhaps and by Spetember all will be back to "normal" - whatever that is !!!