More help for the baby boomers .....

Discussion in 'Property Market Economics' started by Tattler, 23rd Feb, 2017.

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  1. Tattler

    Tattler Well-Known Member

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    What, stamp duty concessions for baby boomers to downsize? As if they don't have enough equity?

    ‘Masterstroke’ stamp duty proposal to ease affordability crisis

    Stamp duty concessions for Baby Boomers is groundbreaking for affordability

    FINALLY, someone is doing something about the housing affordability crisis. Let’s just hope the rest of the states are brave enough follow suit.

    West Australian Premier Colin Barnett has promised a $15,000 stamp duty discount for seniors who want to downsize — the nation’s most substantial concession of its type.

    He has promised that if his Liberal party, is re-elected it will provide the stamp duty discount for the purchase of new and established homes valued up to $750,000, as well as a concession of up to $10,000 for vacant lots up to $400,000.

    This is a significant announcement for housing affordability because the high cost of stamp duty is widely regarded as a major force driving skyrocketing house prices.

    By discounting the tax for seniors, they will be more incentivised to downsize, thus getting the supply chain moving.

    “Transfer duty creates a significant barrier for seniors over 65 on fixed incomes who are looking to change their lifestyle or down size. The cost of transfer duty on a median house price of $520,000 is $18,715, which is almost equivalent to the entire annual standard aged pension of $20,745.40,” Real Estate Institute of Western Australia (REIWA) President Hayden Groves said.

    “The $15,000 concession the Government have committed to, which is capped at $750,000, will make a substantial difference to those seniors looking to ‘right size’ into more suitable accommodation, and will help address the issues of housing affordability, choice and livability.”

    ..... <Please see link for the rest of article>
     
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  2. MTR

    MTR Well-Known Member

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    This must be a joke...... ... we don't need supply, we currently have oversupply. This premier has lost his marbles.
     
  3. Perthguy

    Perthguy Well-Known Member

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    Good policy. Makes sense. Of course millennials get a boost too with a $15k FHOG for new dwellings and zero stamp duty if the price is below a certain amount.
     
  4. Perthguy

    Perthguy Well-Known Member

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    Aww! Poor old pensioner granny stuck in her 4x2 with no money for food!
     
  5. WestOz

    WestOz Well-Known Member

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    Its a confusing election for me, don't like all of what either of the majors are proposing, as usual their both making promises they can't keep, spending up big with $'s we don't have, which means even more debt.

    Would rather neither of them got in but in the end one of them will, even if like federal they have to make deals with many minors.
    Its hard work voting on the minors because we never know where their preference goes, what they really stand for, less publicity/marketing budget etc, how they'll perform if they get in there etc.

    I don't like the westminster system, but wouldn't want what they have in the USA either.
     
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  6. Tattler

    Tattler Well-Known Member

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    The fully thing is that now REINSW is asking NSW government to do the same for NSW baby boomers (see rest of article in link of original post).

    Yep, selling their $2 million bucks house to downsize to $1 million bucks apartment, it is just too hard for them and they need stamp duty concession ...

    ___________________________________________________________________

    "REINSW is calling on the NSW government to provide retirees with a 50 per cent reduction in stamp duty for a residential property purchased to replace an existing residential property up to the value of $1 million.

    But in addition to aiding supply by unlocking larger homes left largely unused by Baby Boomers and creating a chain reaction, Mr Gelavis noted that incentivising seniors to downsize will also free up space for new development.

    “Reducing [stamp duty] will have a threefold benefit — the large infill property will become available for development, helping to meet density targets; infill lots will become more readily available, reducing the squeeze on prices that comes with lack of supply; and most critically, seniors will be able to find and move into a home that is suitable for them to age in,” he said."
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    It will also get them off the pension as they will fail the assets test - $1M in the bank, sorry Granny you're out on your fanny.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    Agreed. I think the days of picking a side and sticking with it are long gone. I have heard good policies from both majors this time around. I like Labor's outer harbour plan. Libs underground rail to Forrestfield is good. Labor's cancelling Roe 8 is stupid and metronet needs a lot of work. No party in this election appeals to me one bit. I will probably vote strategically to keep someone out instead of supporting a candidate.
     
  9. dabbler

    dabbler Well-Known Member

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    I like that, Perth is deflated, but the pin is not letting air out quick enough, so they want to bring in a steam roller to really help lower those prices.

    I wonder if they have been forced into a test for the other states, they will be jumping off buildings if stamp duty gravy stops flowing in NSW, remember what Carr and Co did years ago ?
     
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  10. kierank

    kierank Well-Known Member

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    I hope they bring this stamp duty concession into Queensland at the State Election next year.

    It will bring my retirement and PPOR downsizing forward by about ... 5 minutes!!!

    I just remembered - I am already retired and have already bought our downsizing PPOR. It is being rented.

    I haven't crunched the numbers but I would have a guess that more money is to be made doing it this way than waiting for some S/D concession that may never come.
     
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  11. Phase2

    Phase2 Well-Known Member

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    Sorry, but on what f'ing planet does the high cost of stamp duty drive sky-rocketing house prices???!!!

    Did I read that wrong??? Or have I misplaced about 100 iq points?

    Donkey vote for me this year...
     
  12. Phase2

    Phase2 Well-Known Member

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    Agree. I like the outer harbour idea too, I also don't like ROE 8, and it isn't necessary if they build the outer harbour. However, labor couldnt manage a good time in a brothel... The libs, well they'd blow all of our money there in 1 hit!!!!
    :(
     
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  13. Perthguy

    Perthguy Well-Known Member

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    It's shocking isn't it? If you took the best policies from both sides and tidied them up a bit you would be onto something. All you would need is a government to implement them! :p
     
  14. WestOz

    WestOz Well-Known Member

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    That's how I feel, but usually the case with most elections, State or Fed. Regardless who wins their power is moot, even if the opposition (either one) believe something proposed is a great idea they slam it, prevent it from going through, just to make the party "apparently in charge" look incompetent, then when the other gets in its payback time, all at the detriment of.....

    Re Roe 8/9 - without getting into the environmental/Beeliar concerns, I drive through these areas doing deliveries a few times a week, peak or non-peak, use the Stirling to get up North or back South etc.
    At times congestion can be an issue, especially if a breakdown, accident, roadworks etc, but no worse than any other major road across the State including the so-called freeway (slow-way). High St & Stirling Hwy intersection would be the worst of it which isn't included in 8. IMO if its gunna happen it would be better to get 9 done first.

    The Roe will avoid traffic lights, wear & tear, soot coming out of exhausts etc for a small area in the scheme of things, however not all trucks are going too/from the port, there will be a toll (1st in WA, either avoided or extra expense someone will have to cover).
    However taking trucks out of the equation through these areas isn't really going to make a significant difference, congestion will still happen, imo for now better management on existing infrastructure, improvements to public transport, is all that's needed.

    For those unaware, before the Kwinana Freeway extension we'd rat run across to Rockingham Road then go down through Wattleup, Hope Valley, Naval Base. Behind the Ten Mile shops (now virtually gone) were many homes. All this land/area south to the speedway, allot of it owned by the State/us, is zoned industrial, far from residential, sitting there for years doing nothing, perhaps waiting for an outer harbour, employment, with possible access from four roads too/from the freeway, just south of the existing Roe, to head North, South & East.

    Like Barney did with Elizabeth Key, due to land sales it's "apparently" now cost the State/us nothing, sell off parcels of land at Freo Port to major hotel, apartment, shopping centre developers etc (retain the cruise ship terminal), use the funds for the outer harbour and road improvements, = construction and ongoing employment at both locations.
    Freo no-longer looks like industrial shiet, becomes a major tourism/entertainment hub with not only cruise ships but also train access to City and Airport.

    Make to much sense so politics won't let it happen.
     
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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's an interesting proposal (the stamp duty exemption for senoirs)

    From my perspective and reading into it, it is not about boosting the economy, almost far from it, it's about freeing up a section of the market which has low turn over and making more of it available and therefore more affordable.

    Housing affordability is artificially constrained, in one sector (and especially in other states) by over 60s staying in their family homes which are too big for them as they either don't want to or can't afford to change over to something smaller.

    If those people were incentivised to leave their 4 x 2 large block homes and move into low maintenance houses/apartments (which BTW we in Perth do have a glut of) it would shake up the market IF it was taken up on a largish scale. The over supply of smaller places would be eaten into quicker and more family homes would come onto the market.

    In the future it may help encourage diversity to offer better over 55s housing together with the proposed reduction in over 55s density bonus to two dwellings instead of 5. Or just better diversity with more 2 bedroom options rather than everything being 3 and 4 bedders.

    I don't believe any of the "baby boomers had it easy" whinging and whining. I think they did well with what they had and never ate an avocado or had a take away coffee until they were at least over 40. They started small and moved up in their housing status, they didn't start with a 4 x 2 in the inner suburbs and have paid stamp duty many times over to do that.
     
  16. WestOz

    WestOz Well-Known Member

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    This is more about infill, REIWA have been pushing the changes for a long-time.
    REIWA Commends Government For $15,000 Transfer Duty Concession For WA Seniors

    Areas close to the city have many single widows, elderly etc still living on the 1/4 acre blocks suitable for multi dwelling they bought in the ~50's.

    I recon regardless some will still want to stay put, wanna be carried outta there in a coffin, but others have been waiting for this.
     
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  17. Phase2

    Phase2 Well-Known Member

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    Agree. High-rise would look so much better at Freo port than container cranes and oil storage tanks. Let Packer build a high-rollers casino out there too, it will hoover up the Cruise passengers! Freo might become a lively cashed-up place again.
     
  18. Marg4000

    Marg4000 Well-Known Member

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    I'm retired, so are most of our friends.

    When discussing the pros and cons of downsizing, no one has ever mentioned stamp duty as a consideration. The arguments are always about lifestyle.
    Marg
     
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  19. Angel

    Angel Well-Known Member

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    True Marg, but I bet you live in a modest home and have a modest lifestyle.

    Not like the 100 year old pensioner widows in Ashgrove and Bardon who live in multi-million dollar cash-sucking character homes that they cant afford to pay the rates on, let alone fix the gutters and downpipes.

    Would Great-Grandma move into something smaller (read newer) if she didn't have to fork out $20 or 25K in stamp duty? Actually Hamilton-Grange-Granny is probably too obtuse because she could have done so twenty years ago. Maybe her kids are still more concerned about their precious inheritance than what is best for her. Maybe she is petrified that if she downsizes she will lose her pension. Having been an Ashgrove girl, I have heard it all before.

    They used to discuss this 40 years ago when an Ashgrovian was three times the value of a normal house and my parents couldn't fathom why we bought our first home in Lawnton (not even as nice as Strathpine) and it was one quarter of the price of a typical non-renovated Ashgrovian.
     
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  20. Marg4000

    Marg4000 Well-Known Member

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    Ummmmm....not sure where you got that idea from.

    Still live in the big house where we raised our family..... been here for 38 years!

    And I was raised in Ashgrove too. Not sure what that has to do with anything. Finally sold mum's home about five years ago after she had to enter care.
    Marg
     

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