Maximising Value From Tax Cuts
Although last year saw a number of interest rate cuts extended to those with home loans, these cuts appear to have done little to help the recovery of the property market.
A survey of more than 450 mortgage brokers in Australia was commissioned by Loan Market and revealed that stamp duty cuts, more specifically the reintroduction of or changes made to grants offered by state governments to home buyers, would make the most favourable difference to the market.
Paul Smith, a Loan Market spokesperson, said that: “It may be necessary for state-level governments to look at making further concessions to stamp duty charges so that the housing sector can rebound.”
This call has followed the Victorian Government increasing stamp duty to cuts for first home buyers to 30%. By September 2014, the Victorian Government intends to increase this cut to 50%.
The Victorian Treasurer, Kim Wells, has emphasised that while the cuts have been favourably received by first-home buyers, their ultimate impact on the market is not yet evident.
Reduction of property taxes and freeing up more land for home construction have also been suggested as strategies for reviving the property market.