Any movements in the economy, particularly those surrounding tax, have an impact on the real estate market. With this in mind, a December 9 release by the Property Council of Australia shows that the nation's leaders are gathering this week to discuss tax reforms. It would appear that the ending of stamp duty will be high on the priority list and hotly contested.
Stamp duty is a tax that every Australian territory and state imposes on all property transactions. It is paid by the buyer and can vary significantly in cost depending on the purchase price of the home, its location and the type of loan used. The Property Council's report says that it's "universally recognised as one of the most economically damaging taxes", and it's not hard to see why.
If you're trying to sell your real estate in Bentleigh, this could damage your sales prospects. The extra added cost, which is by no means a small sum, is something that house hunters will have to take into account. The presence of stamp duty could turn people away if it tips them over their financial threshold when combined with the buying price of the home and all other related expenses.
The release points to research by Deloitte, which shows alternative and more effective sources of revenue that could take the place of stamp duty. This solution could also bring a $3.3billion rise to Australia's GDP and a $9.7billion bump to consumption. Whether or not our leaders will bite is something we'll have to wait and see.
Should stamp duty finally be abolished, it could give buyers that extra push to jump on to the market and search for real estate in Bentleigh. Give Matt Hurlston and the team at Ray White Carnegie to see how we can help you secure a great sale on your property.