It's a "Goods and services" tax, not income tax. Avoiding GST is very easy. Don't spend money on stuff.
No Stamp Duty
- Thread starter Starofdavid
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It's a "Goods and services" tax, not income tax. Avoiding GST is very easy. Don't spend money on stuff.
Stamp Duty is actually good. At least the money goes to government for services. If they abolish them, it just mean moeny would go striaght to the vendor anyway, inflating prices even more.
Sydney REA selling fees, that's what I would be angry about. They do the same amount of work now compare to say 10 years ago, and they get a lot more money doing the same work as 2% of $1M is a lot more than 2% of $500000 house!
Sydney REA selling fees, that's what I would be angry about. They do the same amount of work now compare to say 10 years ago, and they get a lot more money doing the same work as 2% of $1M is a lot more than 2% of $500000 house!
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There should be NO stamp duty for FHB. Its a joke, you save hard for a deposit then they basically take that deposit away from you.
I don't really agree with either statement in this case.
Affordability is becoming harder, but in my experience the biggest hindrance to home ownership is getting together the deposit. Whilst first home buyers do get concessions to stamp duty, for many people coming up with as much as 5% less deposit would make it a lot easier to get into the property market.
There would be some impact on prices as it would bring forward demand, but overall I think it would make home ownership easier if stamp duty didn't exist. It would just mean a lot less revenue for the states. Stamp duty is one of the largest sources of revenue for the states. The other is GST.
REA commissions do increase due to increasing house prices. People salaries have also increased, as has the cost of living and the indirect expenses associated with selling a house (you may pay advertising, but you don't directly pay for the REAs assistant, memberships, compliance, licensing, etc). You can't expect an REA to charge a reduced commission over time unless you're also willing to refuse salary increases over the same amount of time.
There isnt in some states, under a certain purchase price threshold.
Just because you disagree with the ways that the government allocates the budget doesn't equate to waste.
I haven't really studied how the government allocates revenue / tax money to be honest.
There are plenty of examples out there, where the government does not run things efficiently, where they are not efficient I call it waste.
I'm no financial expert or banker, but I have an idea (don't shoot me down for it, I'm sure there's some negatives to it), but... Stamp duty is vital revenue for states yet it is a barrier to entry for home owners and first time investors alike.
Why not just allow property buyers to capitalize it on to their loans? Much in the way that LMI can be capitalized on to the loans. That would keep everyone happy, no?
Why not just allow property buyers to capitalize it on to their loans? Much in the way that LMI can be capitalized on to the loans. That would keep everyone happy, no?
Everyone but the banks. It's an interesting idea, but it would mean that lender potentially don't have any security for the loans they're providing. I'm not sure if there even is a restriction against this, but the lenders and mortgage insurers simply won't go for it.
That's terrible!username checks out
I'm pretty sure it's got two dots on the "i", doesn't it?
Well there is stamp duty concession for FHBers already to help them secure first home. For some states, it only applies to new homes only. So anyone else who need to pay stamp duty are either investors like us, or in some states, they want to buy existing homes which should in theory cheaper anyway resulting in less stamps.
So really the stamp duty only affect investors the most. Hence I think it should stay.
Well I would agree with you if the house price are tracking with inflation. But it is not.
For Sydney the house price rises has been significantly higher than the wage growth in the last 20 years. In the old days the median house price was like 3 times the annual average salary. Today it is like 9 times! It shows that the wage growth is so far behind house price growth.
Therefore I think REA commission % should decrease as a result as they are doing similar work these days compare to say 20 years ago, but they get a lot more money just because the house price rises so much.
Edison you've hit the nail on the head with wage growth vs house prices. The only wage that grows with house prices is a real estate agents...
Oh and they aint selling houses these days. Putting something on the internet and printing papers and standing at a door when theres an open home requires no skill whatsoever. Most agents in Sydney atm stand at a door and dont do jack. All arrogant. Can't wait for the day it turns on them and they beg people to buy the houses they're selling..
Oh and they aint selling houses these days. Putting something on the internet and printing papers and standing at a door when theres an open home requires no skill whatsoever. Most agents in Sydney atm stand at a door and dont do jack. All arrogant. Can't wait for the day it turns on them and they beg people to buy the houses they're selling..
That's why they sold off Telstra, CBA, TAB, Tattslotto, Toll roads, Qantas etc and reinvested the profit.
We then collectively whinge when they mention selling off poles & wires or Oz Post.
...and you'll be the first to cry poor because the agent hasn't brought you 10 offers before the first open.
That day will come, I am old enough to have been through a couple of downturns and watched as agents lost their jobs and RE agencies fought for their survival.
Am also experiencing the lack of interest when searching for a house.
Why would I be crying poor?
Hi
Hi Star of David,
If you don't want to pay stamp duty, then don't buy property maybe look at shares.
I have not issue paying stamp duty as long as I make a profit at the end of the day.
Allot of people complain about the government in Australia since I have been travelling we are still the best country by far to live in.
Hi Star of David,
If you don't want to pay stamp duty, then don't buy property maybe look at shares.
I have not issue paying stamp duty as long as I make a profit at the end of the day.
Allot of people complain about the government in Australia since I have been travelling we are still the best country by far to live in.
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