Realmark Group Managing Director, John Percudani said, “One of the greatest hurdles for buyers is the stamp duty which adds significant financial pressure or increased loan request amounts. It is a major deterrent to investors both residential and commercial entering the market as well as first home buyers, it is important to have investors and first home buyers active to create a healthy and balance property market that in turn assists the wider WA economy. With recent changes in market conditions, we have seen an increase in consumers looking to buy into more established areas, although house prices have seen a fallen in recent years the stamp duty charges remain as a present hurdle.”
REIWA President Damian Collins has come out on behalf of REIWA stating “ REIWA urges the WA Government and the Opposition to put stamp duty on the agenda at the next state election, as it is costing West Aussies around $20,000* when they purchase their home, which could add up to five years onto the life of a mortgage.”
Speaking to Capita Finance Mortgage Broker Stephen Geel, he stated, “The impact of stamp duty adds additional pressure to a buyer who is already in financial pressure to come up with a deposit. Taking on average house price in an established area of for example Duncraig where prices sit around $660,000, a 20% deposit on average to eliminate stamp duty would be $132,000 and stamp duty on top of that of $25,365, plus a mortgage registration fee of $174.70 and transfer fee of $304.70, which is a huge obstacle.”
REIWA has asked for the government to consider a land-based tax regime, “By moving towards a land-based tax regime, there would be a number of flow-on benefits including providing the government with more income to re-inject into the economy. It would allow for greater housing mobility across the community. Households could locate closer to employment and activity centres, thus reducing congestion,” Mr Collins said.