How much is stamp duty costing you?
Stamp duty could be costing you more than $90 a month, a housing lobby has claimed.
The Housing Industry Association (HIA) has released its Stamp Duty Watch report, claiming stamp duty is adding significant material cost to mortgage repayments. The report found that during June 2016, the average stamp duty bull for a non-first home buyer owner-occupier was $17,811. The HIA said this added an additional 3.6% to the cost of purchasing a home, or the equivalent of four months of after tax income.
“By eroding deposits and making home buyers borrow more, stamp duty is estimated to add $91 per month to household mortgage repayments for a median priced home,” HIA senior economist Shane Garrett said.
Garrett argued that stamp duty was “hurting ordinary households”, as well as restricting economic activity and obstructing the national dwelling stock “from achieving its full potential”.
“Including the new FIRB application fee, foreign investors in Australia’s biggest rental markets now face major costs on entry. This is most severe in Melbourne, where the purchase of the typical unit involves almost $65,000 in stamp duty and fees. The situation is not much better in Sydney, with foreign investors hit for over $58,000 on the acquisition of a unit of average price. Under the new rules, foreign investors in Brisbane units will be charged $29,000 in transaction taxes alone,” Garrett said.
Garrett said foreign investors were a “key tent” of supply for rental markets, and that rental conditions would tighten in their absence.
“These additional costs will act as a deterrent,” Garrett said.