if stamp duty abolish & replace by land tax

Discussion in 'Property Market Economics' started by samiam, 22nd Mar, 2016.

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Stamp duty has a benefit of tempering flipping activities which could drive prices to unrealistic levels. It also acts as a barrier to any fool buying such a fixed asset by imposing a savings obligation as lenders dont usually lend on duty. If they scrapped that every houso with low income might try to take on loans they cant meet.

    The only people I hear asking for duty to go and those without property, flippers and those who want more property. All reasons that support the potential for it to be a price inflationary problem.

    States wont give up their cashcow without a replacement
     
    Paul@PAS, 29th Mar, 2016
    #21
  2. kierank

    kierank Well-Known Member

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    ****, I am just about to pay $139k in Stamp Duty on my latest purchase. Surely that is enough to keep the QLD Government happy!!!

    There is no way I want to start paying Land Tax on this purchase
     
    kierank, 29th Mar, 2016
    #22
  3. Northy85

    Northy85 Well-Known Member

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    This will just make flipping easier and will cause inflation. Rents will rise because literally every investor will have a LT obligation every year, so across the board there would be a rise. I think the rent rise would be more pronounced than if negative gearing was scrapped because NG affects investors all differently.
     
    Northy85, 29th Mar, 2016
    #23
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