Forums / Property Investing / General Property / Vendor Duty in NSW to be abolished?

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  • Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,173

    This may be good news
    New premier to axe property tax

    Premier-elect Morris Iemma’s first executive decision after Tuesday’s formal coronation by the Labor caucus will be to scrap the hated vendor tax on the sale of investment properties.

    http://www.smh.com.au/news/national/new-premier-to-axe-property-tax/2005/07/30/1122144058479.html

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Profile photo of SonjaSonja
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    @sonja
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    Hi Terry,

    I actually logged on to see if there was anything posted about this. I don’t know much about Mr Iemma but I sure was happy when I saw the front page of todays paper :)

    We only have 3 IPs but all are in NSW – no more land tax and now no more vendor’s tax for us!

    Kind Regards,
    Sonja

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,173

    Hi Sonja

    Looks like we will have to wait a bit longer to see what happens.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of JKMJKM
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    @jkm
    Join Date: 2005
    Post Count: 82

    Hi Guys,

    I hope the Sunday paper was right. I am waiting to list an investment property & it will obviously make a big difference. Our local paper said today we is not confirming. The other problem I see for me is that it won’t start straight away.

    Kim

    Courage is not acting without fear but acting despite your fear.

    Profile photo of foundationfoundation
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    @foundation
    Join Date: 2005
    Post Count: 1,153

    I would not be surprised if this occurred. However, I would be surprised if the following 2 situations did not:

    1) The removal of another disincentive to sell adds to the over-supply problem in Sydney.

    2) House + flat prices continue to fall at increasing speed thanks to supply growing as demand continues to shrink.

    Excellent news for those cashed up and ready to pick up the bargains.
    Dire news for those who have already maximised their ‘leverage’ and find themselves in the negative equity trap.

    It is important to understand that while the vendor tax has not helped push up demand and prices of houses in NSW, it is not the cause of house price deflation. The re-adjustment in values is simply the inevitable result of rampant speculation pushing values up too fast, to a point that they could not be sustained.
    Whenever real estate agents or their spin agents / institutes blame vendor duty for the sorry state of the market, it pays to remember that they are payed primarily for sales turnover, not sale price. If this disincentive to sell is revoked, they will benefit from increased properties on their books, and if this leads to lower prices, the likely increase in turnovers will be the icing on their cake.

    Regards, F.[cowboy2]

    Cheers, F.[cowboy2]

    Profile photo of GPSnetworkGPSnetwork
    Member
    @gpsnetwork
    Join Date: 2005
    Post Count: 313

    I think it wouldbe a must to drop these taxes to gain publicity. It’s just a matter of time.

    I really think this will be a great thing for NSW investors.

    Looking forward to the changes..

    Roy H.
    L.R.E.A., Dip FS (FP)
    Guardian Property Specialists (GPS)
    http://www.gpsnetwork.com.au

    Profile photo of GeoffBeckGeoffBeck
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    @geoffbeck
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    Well it’s now official, NSW property vendor tax is abolished from TODAY.

    http://finance.news.com.au/story/0,10166,16127062-31037,00.html

    What will this do to the property market in NSW now???

    Cheers
    GeoffB

    Profile photo of foundationfoundation
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    @foundation
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    As I said before, I think it will make the decision to sell a property easier, but will not effect buyers. Only lower prices will entice buyers back.
    F.[cowboy2]

    Profile photo of grossrealisationgrossrealisation
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    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    Hi all
    It also removes another little thorn that has been stuck in developers backs for some time.call me a little cynical but this was on the cards for some time.

    Goes like this bob ( no reference or intention to any person just your average bob or joe in the street could have done the same had they known)buys in nz, the tax came in, nz prices then started to climb due to investors leaving nsw, that market is starting to slow, tax comes off and bob/joe is a happy guy.
    Good on you bob the builder.
    hay nothing wrong with that it called big business

    here to help

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