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Let first home buyers delay paying stamp duty

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Australian Broker | 23 Jul 2013, 05:00 AM Agree 0
One broking director says first home buyers should be allowed to delay paying stamp duty
  • NoTimeLikeTheFuture | 23 Jul 2013, 09:37 AM Agree 0
    Lenders will just factor the stamp duty from selling price and we get the same LVR as today.

    Instead Gov't should loan first home buyers the stamp duty at 5% PA in a HECS style arrangement with automatic second mortgage on the property.

    Reduces LVR for home buyer, about 1% will default but more than made up by the 10% or more who otherwise couldn't have paid stamp duty at all - so net gain for Gov't.

    And 5% PA is a decent earn for the gov't at today's bond rates.
  • Papery | 23 Jul 2013, 09:53 AM Agree 0
    Disagree completely....what if the property fails to improve in value. I wonder how the LMI providers would adjust their policies if this idiocy got adopted... who takes priority when the sale goes through (forced or otherwise).
    We are already seeing negative equity situations. If you cant cover the upfront costs then you just shouldnt be in the market. Property values remain high in Australia & verging on being unaffordable for most & thats the issue that needs addressing, not how do we continue to prop up an already inflated market.
  • Scott Beattie | 23 Jul 2013, 10:49 AM Agree 0
    Won't the GST abolish all taxes and the like anyway???
    I guess it's only 2014 and the GST only came in 14 or so years ago......
  • Brado | 23 Jul 2013, 01:16 PM Agree 0
    the system is already in place in the ACT. the buyer has ability to defer the duty for 5 years, with another 5 years to pay it with accruing interest.
  • SIDBROKER | 24 Jul 2013, 09:20 AM Agree 0
    Can we really afford to continue to pay for the extravagence that is having a state govt. at all. Stamp duty along with over priced taxes on our cars and all the rest to my mind are illegal taxes and were replaced by gst supposedly. Why are we all allowing this wroughting to continue. I say lets abolish state govts. all together and simply have Federal and local govt. We have small population and too many taxes and it really has become ridicoulous. Politicians which are public servants seemingly are the only ones making any money these days and it is high time for massive correction!!!
  • dave | 14 Aug 2013, 04:10 AM Agree 0
    abolish negative gearing... put some downward pressure on house prices in a controlled manner... or just let things go and wait for the inevitable crash
  • SunnyCoastBroker | 14 Aug 2013, 09:21 AM Agree 0
    First home buyers in Qld are exempt from transfer duty up to a purchase price of $505,000. That should cover most of them.....
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