Stamp duty relief may drive property recovery
Introducing more stamp duty concessions is the key to reinvigorating Australia's residential real estate sector, one report suggests.
According to a survey by Loan Market, a large portion of Australian mortgage brokers believe slashing the tax will revive the ailing industry.
The company's corporate spokesperson Paul Smith said when asked the question 'what action can the government take to stimulate the housing market in 2013', 55 per cent of respondents said stamp duty relief will be the driving force of a strong year for the housing sector.
Mr Smith went on to say the tax poses a significant challenge to would-be buyers.
"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," Mr Smith commented.
"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."
Other actions identified as being a catalyst for growth in 2013 included the reintroduction or amendment of state level grants (32 per cent), lower property taxes (ten per cent) and the release of more land for home construction (three per cent).