pic courtesy themorningbulletin.com.au
The announcement is fresh so the details are still sketchy. But here’s the latest news for home buyers from the Queensland State Treasurer and today’s budget:
If you’re buying a home after July 31st you will now pay more stamp duty. For the median Brisbane house of $430,000 it will be $6,575 extra (for a new total of $12,875 going out of your pocket into the government coffers.) Concessions will remain for first home buyers spending less than $500,000, not that there’s many of them left any more. The duty on an investment purchase remains unchanged.
On our best estimates the number of real estate transactions in Brisbane were lower in 2010 than they had been for more than a decade. This year has so far been the slowest in many agents’ memories, well down on 2010, maybe by as much as a further 30%. So how does increasing the tax on each of these make any sense at all? It’s hard to keep an open mind when the mindlessness of it is breathtaking.
Why the change? Well the government seems to be struggling with balancing the books and had to fund some “headline” good news stories. Here’s the explanation from the budget papers: “The government has introduced a temporary $10,000 Queensland Building Boost grant towards the construction or purchase of a new home for six months commencing 1 August 2011. The Community Ambulance Cover levy is to be abolished from 1 July 2011. These changes are to be funded by the removal of the principal place of residence transfer duty concession.”
I must be missing something here. If the Treasurer thinks the new home market operates in isolation of the established housing market he’s badly misguided. Smacking home buyers around the teeth with an extra $6000 or $7000 of tax will further slow the whole real estate market – established and new. So they won’t be handing out too many of those $10,000 cheques for new homes……
Ahhh – I think I understand!
Please share your thoughts on these changes. And to calculate your new tax go to the stamp duty calculator.
## Thursday 16th June update: Some news today from the State Opposition in their budget reply speech:
“Today we also announced our commitment to reintroducing stamp duty concessions on family homes, a saving that was ditched by Labor in the 2011-12 Budget. We understand that this 125 per cent increase will cost Queenslanders dearly, which is why we oppose it. Our policy will save Queenslanders around $7,000 on the average home.”
I am wild with these proposed new changes. After re-locating to a new area, our Brisbane home which did not sell in this pitiful market needed to be rented out. We were hoping when we sold it we could buy a home in the area we have re-located to. Now, this new tax will add $7,000 to the cost of the Brisbane home (if it ever sells as home buyers will now look at building a new home to get the $10,000 grant) and I will have to pay an extra $7000 when I eventually do buy a new home in the area I have re-located to. To save $113 on the ambulance levy, looks like will cost me $14,000. Not happy Anna, in fact, I am WILD at such a dumb move. This new tax will leave a plethora of older homes sitting on a slow market whilst new ones pop up everywhere.
I agree that the new changes are horrid, but I think that when it really boils down to the difference in building or buying established homes sensible investors will know that they will need to pay a lot more on building a new home to get something at the same standard as a well presented established home. My husband & I have just be investigating the Cairns market for the past couple of weeks to buy a new family home (after leaving the NT) and we have definitely found much better value in established homes with gardens, pools, fencing & other ‘add-ons’ to the building process that would definitely cost a lot more when building. You may loose some of the prospective buyers, but there are also a lot of people who don’t want a new home on a tiny block in a cramped estate with roads so small that they’re basically one-way.
I’m a single Mum. I am presently trying to sell two houses before I default since times got hard, after I had an accident, and got into financial difficulty after my insurance company wouldn’t pay out on my income protection insurance. It was too low an amount anyway as they wouldn’t increase it to real income after a small claim years ago. It is an impossible real estate market as it is, competing with much other stock on market. I’ve already dropped my prices huge amounts. What is this going to do to my buyers? They will want another $30K off each house for the $14k odd this will add, and will negotiate further I’ll bet until they get a reduced price from someone. Stamp duty is astronomical enough now. $35k-$40K on mine. You have just killed any prospective sales for me Anne Bligh. And you will plunge us into real depression.
So what will I do, maybe put my small equity if there is anything left after all of this, into an SMSF and apply for govt housing and a pension and rent assistance! Or I could go and emigrate to NZ and buy a house there where the whole transaction to buy costs around $500! No stamp duties, transfer/mtge registration fees. Those who try to provide for themselves to be independent are penalised yet again. How hard can you make it for the average person. There are many others just like me out there.
When is this govt going to stop playing Robin Hood, and creating a false real estate market with these gifts to first home owners. First home owners should be allowed to use their own Super to fund their first house, not government handouts. This teaches them none of the values of saving when they receive a handout. Easy come, easy go. Look how many overpaid for houses during the last financial boost, creating a boom and silliness that shouldn’t have been. Is it those same ones now bailing out due to mortgage stress, because they still don’t know how to save.
Roll on election before August! And Campbell, I hope you reverse this. Abolish this total grab on our hard earned monies, as it will sink so many people.
There is no incentive for anyone to work hard and save in this country and politicians with their fat salaries and big super are just living in another world.
This proposed new changes to Queensland Stamp Duty’s will trigger the start of the Australian Property Reastate Depression many investors overseas have being warning Australians is coming.
Instead of providing economic stimulus to off set the depression in Reastate that is to come. such as lowering stamp duty or new tax incentives to lure a greater amount of sales / investment and building activity?
This Government New Great Big Tax will cause more economic pain for Queensland then the Cost of all the natural disasters put together.
Think About it for a Minute less investment in Queensland will hurt all business right across the board right across the State.
How much new Building activity will we see if first home buys know that their will be no Rea-sale market or very little chance of reselling their home they built because future buyer’s will shun the Queensland Reastate Market Due to the Government’s excessive stamp Duty’s.
The market in Queensland is Weak already Now is Not the time to for the Government of the Day to destroy the property market With it’s Great big New Tax!
This is Not How to Recover the State Already Weak Economy!
Some news today from the State Opposition in their budget reply speech:
“Today we also announced our commitment to reintroducing stamp duty concessions on family homes, a saving that was ditched by Labor in the 2011-12 Budget. We understand that this 125 per cent increase will cost Queenslanders dearly, which is why we oppose it. Our policy will save Queenslanders around $7,000 on the average home.”
Forest Gump said it all, “Stupid Is as Supid Does!”