SA tax changes

[kum yin lau]

Hi SA people, I think we need to protest against the proposed changes to stamp duty etc.

While I haven't got all the little details, what I heard is that the state govt proposes to replace stamp duty with an annual fee on home loans. Something like that.

I can't see how that can be good for anyone at all except the govt who obviously is trying to get some cash.

I fear that if no one comes out with a violent outburst, this will go ahead.

KY

 

[D.T.]

I'd rather an ongoing cost than an upfront cost, personally

 

[Terry_w]

I think there is a related thread:
http://somersoft.com/forums/showthread.php?t=106163

 

[hugh72]

If it means no or less stamp duty up front but a yearly fee it won't stop me buying in SA. Hope it doesn't become a way of double dipping to increase state government revenue though

 

[jim1964]

a yearly fee it won't stop me buying SA.

They are spruiking a $1200 per year figure.If you had a handfull of properties already,and have paid Stamp Duty already,how is this fair?On top of ESL,Land tax once again the property owner gets targeted.
For arguments sake,you have 5 properties X $1200 =$6000.Do you pass this on to the tenant? I wouldn't think so,so you have to dip into your own pocket once again.

 

[D.T.]

They are spruiking a $1200 per year figure.If you had a handfull of properties already,and have paid Stamp Duty already,how is this fair?On top of ESL,Land tax once again the property owner gets targeted.
For arguments sake,you have 5 properties X $1200 =$6000.Do you pass this on to the tenant? I wouldn't think so,so you have to dip into your own pocket once again.

2 things Jim

1) You're commenting on it being unfair but haven't even heard whether existing properties incurring stamp duty would be fully/partially exempt yet. Don't jump up and down until you know the full story

2) Returns will always return to status quo. People expect X% return to be worth their time/risk/etc. If it's lower they dont buy, if its higher they buy more quickly and both of these scenarios affect variables until status quo is achieved again.

 

[jim1964]

Don't jump up and down until you know the full story

Just putting it out there. I have absolutely no Trust in this government with fairness,they wouldn't know the word.

 

[hugh72]

Maybe it might be a grandfathered agreement for existing property owners or a reduction in existing land taxes or a threshold increase to make it fair?