The recent news that stamp duty on housing loans could be abolished as a result of the Henry Tax review has been hailed as more good news for real estate agents and the property market. Nationally it would seem that real estate agents have welcomed the proposed abolishment of the stamp duty saying it will provide another incentive for buyers to enter the property market.
The move that has been highly anticipated, and one that has been highly lobbied. The Henry review has been inundated with submissions calling for the end of stamp duty, and for a few reasons. Although the tax on moving house may be easy to collect, it leads to poor use of housing stock and poor labour mobility. The prospect of paying stamp duty discourages many people from moving house and this is particularly evident when it comes to elderly people holding off on moving to more appropriate accommodation.
Although there are already signs that the property market is beginning to recover, additional incentives to encourage activity are applauded by real estate agents across the nation, and the lure of not having to pay stamp duty is certainly one. In addition to the extension of the first home buyer boosts and continuing low interest rates, the market is expecting to see an increase in activity with the abolishment of the stamp duty.
Many of us at Century 21 are certainly seeing things begin the climb back in the property game, as I have mentioned on several occasions through this blog. The likes of the recent Westpac-Melbourne Institute index of consumer confidence increasing by a near-record 12.7% in June to 100.1 points illustrates that positive movement in the market is on rise, but of course everyone in the industry, or the property market for that matter, welcomes any move that encourages more people to get back into real estate.