STAMP duty relief has been revealed as the key factor to help the housing industry rebound from near historic lows in 2013, a national survey has found.
The survey by mortgage broker Loan Market which asked "what action can the government take to stimulate the housing market in 2013" found an overwhelming majority of 55% of respondents citing stamp duty relief as the key to a strong 2013 for the housing industry.
Sunshine Coast Loan Market mortgage broker Carol King said the survey of the 450 Australian mortgage brokers showed, that while stamp duty charges differed from state-to-state, the tax was a considerable obstacle for consumers looking to purchase an established home.
"Stamp duty serves as an important source of revenue for state-based governments looking to create balanced budgets, but in many cases this tax can erode a significant chunk of a home buyer's savings and sway their buying intentions," Ms King said.
"What stamp duty often does to consumers is reduce their deposit level so that they end up in Lenders Mortgage Insurance territory and have to pay an additional cost to establish the loan."
Ms King said most lenders don't charge LMI if you have a deposit of at least 20% of the property price, however, in many cases stamp duty charges were reducing deposit sizes so that the consumer must pay the insurance that protects the lender if the client defaults on their loan.
"If you act at the right time, you can save a significant amount of money that can allow you to pay your home off faster."
Ms King said a range of stamp duty concessions were available for consumers who were purchasing their first home, building or significantly upgrading an existing dwelling.
"In every state first home buyers have some type of concession that helps them avoid this cost, however, for those looking to purchase their second home or an investment property this is an unavoidable cost," she said.
"With the RBA interest rate reductions in 2012 having a minimal impact on the housing industry it may be necessary for state-level governments to look at making further concessions to stamp duty charges so that housing sector can rebound."
Ms King said that those buyers looking to save extra money on stamp duty or receive a government grant should keep a close eye on the legislative talks of their respective state governments.
"Changes to grants and concessions do not happen overnight so it's best to be well researched on what policies are being discussed," Ms King said.
Ms King said that a mortgage broker was well placed to offer the latest news on stamp duty and home owner grants as well as find the right home loan for a borrower's personal circumstances.
The Survey Results:
What action can the government take to stimulate the housing market in 2013?
a) Create more stamp duty relief - 55%
b) Lower property taxes - 10%
c) Reintroduce or amend state level grants - 32%
d) Release more land for home construction - 3%
For more on finance in property, pick up your copy of Domain free in Saturday's Sunshine Coast Daily.
Domain: find what you are looking for here
* Professional offices on 2 levels and dine-in Coffee Shop Will sell separately * Main street frontage with high volume traffic in the heart of the Ipswich CBD...
Located in a prestigious and convenient pocket of Flinders View, this property is situated on an 800m2 elevated block and is surrounded by some of Ipswich's finest...
Multiple development options including Retail, professional offices, restaurant, convenience shopping, fast foods, hardware, car sales and entertainment (subject...
Perfectly positioned & tucked away at the end of a quiet cul-de-sac, this hidden gem will make an excellent investment! This solid brick home has many features in...
If you enjoy entertaining whether indoors or outside, this immaculate family home has it all. Boasting modern, stylish sophistication and uncluttered...
This stylish 4 year old ex display home is too good to resist. Sitting on a 937sqm block with plenty of room for a shed, pool or granny flat. Easy access into...
The owners of this Brassall Hi Set are keen to sell and the property location of the property is one of its draw cards. The property has two street frontage so...
This brand new Simonds home is built and ready for you to occupy..now! Positioned high in the new Sovereign Pocket estate at Deebing Heights. A family friendly...
If you would like to get into the market and you're on a budget, then you have to make the time to inspect this property! - Perfect for first home buyers just...
This property has been designed for the children in mind with its huge 1038m2 fully fenced block. If you have a family member who needs wheel chair access this...
Join the Community.
Get your local news, your way.
Update your news preferences and get the latest news delivered to your inbox.