Don't hold off buying due to rumours of stamp duty removal...

Talk of state governments potentially scrapping stamp duty is positive, although experts warn that the tax won’t be scrapped without a replacement. This could possibly be more expensive over the life of your property purchase.

By Rachael Griffin

28-07-2020
Just as sellers are being told to get their homes on the market now, rather than waiting until spring, buyers shouldn’t hold out for a change in the tax system.

While talk about removing stamp duty is getting louder, the murmurs about scrapping stamp duty has been around for years and so far the ACT is the only state or territory that has made the change.

If stamp duty is scrapped, home owners will likely end up paying the another tax in some way, shape or form it’s just unlikely to be upfront.

While the amount of stamp duty depends on which suburb a buyer chooses to purchase in, across the states and territories more generally, the higher the value of a property, the more a buyer will pay. Prospective buyers will need to brace themselves for a new ongoing bill as the trade-off to the removal of stamp duty.

Tax reforms will take time to legislate, so buyers could be waiting a long time before anything new is set in stone.

If you find the home of your dreams, and you can afford it now – even at a stretch with stamp duty included – is it worth putting off the decision? You might end up paying more money with a new, unknown tax in the long run. Plus you could snag a bargain while others are sitting on the fence

Investment legend, Warran Buffet, once said, “Be fearful when others are greedy and greedy when others are fearful”.