Stamp Duty Cuts in Victoria

[mortgageman]

It will be interesting to see how this will effect the Victorian market. Should give quite a boost to the lower/middle end of the market I would think:

http://www.heraldsun.com.au/news/na...-property-market/story-e6frf7l6-1226004692426

 

[bluestorm]

CUTS to stamp duty are likely to make the first home-buyers' market even more competitive, real estate agents say.

Can't see how. First home buyers get stamp duty concessions currently, so a 20% drop for everyone else will not make any difference to this segment.

Also, if I do a quick calculation of stamp duty around the different states, a 20% drop in VIC, would barely bring VIC in line with all the other states.

Stamp Duty Calculator

I don't believe a $3000 drop in VIC stamp will have any effect boosting the market. It's a one-off cost. A 1% rise in interest rates would easily offset this reduction.

 

[Propertunity]

Can't see how. First home buyers get stamp duty concessions currently, so a 20% drop for everyone else will not make any difference to this segment.

Also, if I do a quick calculation of stamp duty around the different states, a 20% drop in VIC, would barely bring VIC in line with all the other states.

I agree. VIC currently is up there with those states that have the most expensive stamp duty in the country.

If history is anything to go by, all that happens is that sellers jack up the price of their properties by the amount of govt. SD cuts.

 

[Peter_Tersteeg]

I'd say it'll reduce activity a little just prior to July, and then a corresponding increase in July. No real lasting effect though.

 

[Casserole Dish]

What about the OTP market? They are always pushing the "Save on stamp duty" angle. There would be less of an incentive to purchase OTP if all stamp duty is halved by 2014. Or not enough to make a noticable difference?

Sadly I agree that the cut will just sort of get lost in the price the vendor asks anyway, but at least it makes it a bit fairer for us Victorians... maybe.

 

[mortgageman]

Quote:
CUTS to stamp duty are likely to make the first home-buyers' market even more competitive, real estate agents say.

Can't see how. First home buyers get stamp duty concessions currently, so a 20% drop for everyone else will not make any difference to this segment.

Also, if I do a quick calculation of stamp duty around the different states, a 20% drop in VIC, would barely bring VIC in line with all the other states.

Stamp Duty Calculator

I don't believe a $3000 drop in VIC stamp will have any effect boosting the market. It's a one-off cost. A 1% rise in interest rates would easily offset this reduction.

I beg to differ. In my experience the major problem for first home buyers is coming up with a deposit and a reduction in stamp duty, co-inciding with the re-adoption of 95% + LMI loans by quite a few lenders will open up the market to a lot more people.

 

[tom32]

Vic still does not have a FHB concession on stamp duty does it?

 

[Peter_Tersteeg]

Vic still does not have a FHB concession on stamp duty does it?

There is a small consession if you fill out a stat dec that the property is for your PPOR, about $1000 or so. Nothing extra for FHB.

Off the plan will still be attractive. Stamp duty on land goes from $10k to $8k. Stamp duty on completion goes from $25k to $20k. There's still a big gap in all that.