All Topics / General Property / NSW: stamp duty payable on sale of investment prop

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  • Profile photo of _se7en__se7en_
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    Heard on ABC radio that mini bugdet will make stamp duty payable on the sale of investment property.

    Hope i heard wrong

    Profile photo of lazolazo
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    @lazo
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    Yep its true – 2.25%

    But no stamp duty on PPOR up to $500,000.

    Personally I hate the concept but basically because I am selfish. I would prefer to see a reduction in stamp duty across the board rather than an exemption only for low property prices, and lets face it, within sydney you can’t find a place for less than 500,000 that you would be happy to bring up a family in. I certainly can’t find it anyway.

    Not sure about timing but assume very soon…

    Profile photo of Mortgage HunterMortgage Hunter
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    This has been touted before.

    I think it a good thing.

    Stamp duty paid on sale helps people get into a home or IP. It means their deposit goes much further.

    It also means SD is paid out of profit which is easier than finding it up front.

    Most importantly it is a godsend to the buy and hold investors!

    I am sure that if adopted there will be provisions for people who have paid it not to have to pay it again on sale!

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Mortgage HunterMortgage Hunter
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    This has been touted before.

    I think it a good thing.

    Stamp duty paid on sale helps people get into a home or IP. It means their deposit goes much further.

    It also means SD is paid out of profit which is easier than finding it up front.

    Most importantly it is a godsend to the buy and hold investors!

    I am sure that if adopted there will be provisions for people who have paid it not to have to pay it again on sale!

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of _se7en__se7en_
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    Stamp duty still payable on all property purchase unless you are a first home buyer (up to $500,000)

    Profile photo of lazolazo
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    that’s my read of it too se7en.

    the 2.25 is in addition to the existing ad valorem rates to be paid up front.

    I understand the motivation – it is moving the duty burden from ‘battlers’ purchasing low value houses to live in, and putting it on the investors.

    That move is bad for me so being a typically selfish human I am disapointed in the decision.

    I get the impression it is signed sealed delivered too…[glum]

    Profile photo of RugbyfanRugbyfan
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    This sounds like the biggest rort in years. Where does the NSW state gov get off increasing the taxation of people who are just trying to create wealth for their retirement.

    I sincerely hope it is a bad joke otherwise I feel there will be alot of agro coming up very soon. I would suggest that maybe 35 – 40% of houses in Sydney are over 500,000. So that affects so many people.

    ‘Eat rich food, barbeque a yuppie’ [greedy]

    Profile photo of _se7en__se7en_
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    Profile photo of RugbyfanRugbyfan
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    Thank you but I had already checked it out and am horrified.

    It means if you buy an investment property in Sydney you are more than likely up for:

    When you buy

    1. Stamp Duty (NSW Gov)
    2. Land Tax (NSW Gov)
    3. Stamp Duty on Mortgage (NSW Gov)

    When you sell

    1. Stamp Duty (NSW Gov)
    2. Capital Cains Tax (Fed Gov)

    Where are the incentives to purchase property in this climate now?

    ‘Eat rich food, barbeque a yuppie’ [greedy]

    Profile photo of lazolazo
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    Slightly deeper though still v superficial reading of parliamentary speech seems as though 2.25% is payable only where CG greater than 12%.

    Profile photo of lazolazo
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    @lazo
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    date – to be finalised in may and effective no later than 1 july

    Profile photo of lazolazo
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    @lazo
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    final clarification before i get back to work – exemption only applies to first home buyers.

    have fun working out how it will effect you all!!

    And if anyone has a crystal ball please let me know!

    BTW, I much prefer Brogden’s 10% across the board alternative. How do we let labour governments ever be in power??

    Profile photo of hgwellshgwells
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    Not Happy Jan, the Govt is just taking more and more money from our pockets. They should abolish stamp duty for a first home buyer completely and lower the rates for every one else, I guess they have to fill their black hole somehow and we the investor who is trying to do something for their retirement is suckered again. I know how I will vote next time, and it ain’t for Mr Carr.[angry2]

    Profile photo of noxfordnoxford
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    What i would like to know is what has happened to all the extra stamp duty that was collected over and above the treasury estimates. I feel this is a very unfair slug at a certain type of people, namely those who wish to better themselves by trying to be property investors.

    Call me a cynic, would this policy have been announced 12 months before his term is up no way.

    Noxford

    To be financially independent is no longer a dream, it is now a real life plan

    Profile photo of jparriejparrie
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    Well, this is fair isn’t it?

    Taxed when you buy property, taxed when you own property, taxed when you sell property. Taxed 1/2 of what you earn, taxed on 2nd hand cars, marginally taxed on savings, taxed an extra 15% on Super if you earn a reasonable amount, taxed 10% on everyday shopping, etc etc ad infinitum. Yep, sound about right for Australia and it’s treatment of the poor old tax payer.

    Tax in it’s own right is fine, it’s just the quantity that makes you think, well, is it all worth it?

    JP

    Profile photo of wealth4life.comwealth4life.com
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    This reads as a yearly tax of 0.4% PER YEAR for any properties other than your own home in NSW.

    Queensland is looking good to me how about you.

    [email protected] [cigar]

    go to http://www.nsw.gov.au for the manuscript

    Profile photo of AdministratorAdministrator
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    I understand that early last century there wasn’t any income tax in this country.

    When income tax was introduced it was supposed to be a temporary measure only.

    So much for politicians’ promises.

    Until people stand up for themselves they will continue to be played for a sucker.

    The government continues to grow its expenditure, it will always find ways and means to spend the money. Indeed it always appears to have a shortfall thence the continuing looking for new ways to raise revenues.

    Yet, essentials are by and large overlooked.

    We will shortly have another election. Have a look how, in a desperate attempt to get into (or remain) in power, promises are made which can only be funded by desperately looking for additional ways of raising revenues.

    This world, this country, is sick. The politicians for making irresponsible concessions and promises and the public for being so shortsighted that they don’t appear to want to
    know about the fact that there is always a price to pay, there aren’t any free lunches.

    Apathy costs.

    Pisces

    Profile photo of kay henrykay henry
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    How would we build roads, schools, hospitals, public transport, if there was no income tax? Guess we could all voluntarily put in a bit each week.

    kay henry

    Profile photo of AdministratorAdministrator
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    >> How would we build roads, schools, hospitals, public transport, if there was no income tax? <<

    Congratulations Kay. With one sweeping statement you have now solved all the ills of the world, and all that is wrong with the system has now been justified.

    There doesn’t appear to be any room in your thinking to see what is wrong with the system.

    The system allows pressure groups to milk the government’s resources to the detriment of the greater good.

    Just one very relevant example : Health. The government KNOWS what can be, should be, done to improve the public’s health but aren’t prepared to take the steps necessary to attain that worthy goal.

    As a consequence people make themselves ill (yes, they do it to themselves) with a lot of help from the government.

    Isn’t it the government’s task and responsibility to educate people so as to discourage them to continue to take and eat certain harmful substances which cause such serious illnesses like heart problems, diabetis, cancer etc etc.

    Billions are spend on subsidising medicines whilst the illnesses themselves could by and large have been avoided in such an easy way.

    Whilst on the one hand the medical profession comes up with more and more discoveries to extend one’s lifespan at the same time it isn’t in their interest either to educate people.

    How would they otherwise pay for their tennis courts if their waiting rooms are empty because the populations’ health stanfard has been improved so as to all but eliminate many of the social illnesses of the last 80 years ?

    Still not convinced ? Walk into any club and have a look at the multitude of older people, all very busy pulling the poker machines.

    Bloody monkeys. Sorry, that is probably offensive and unfair to monkeys because I would think that monkeys eventually would wake up to themselves.

    Why would the government encourage such a scourge on society ?

    Yeh yeh yeh, I can already hear some idit pundits saying ‘Oh, but the government isn’t encouraging this as they have strict control over the number of machine licences.’

    Yeh, that would be right. They are really interested in the quality of life of the older lonesome people, give them something to do.

    It sure isn’t because the government wouldn’t be able to function without the poker machine tax revenue they collect.

    Pisces

    Profile photo of RugbyfanRugbyfan
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    I’m going to try to get the topic back on course here.

    As I think this can be a very balanced forum sometimes with views ranging from close to socialism to far right wingers, I would like to know if anyone can explain to me the benefits of the stamp duty/land tax changes of this mini budget.

    I am horrified with what will be brought due to the Carr Government’s mismanagement. But I am also aware that I may be heavily biased too.

    Can someone please give me the plusses so I can at least get some sleep tonight worrying where I am going to get my extra Land Tax from?

    Thanks

    ‘Eat rich food, barbeque a yuppie’ [greedy]

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