The Real Estate Institute of WA (REIWA) has found that while median house prices in Perth have increased 836 per cent over the last 25 years, stamp duty thresholds in WA have remained unchanged, giving way to massive increases in stamp duty costs and having a significant impact on housing affordability. The REIWA told a senate inquiry,
“With the stamp duty impost now representing 4.1 per cent of the median house price, many purchasers buying the median priced house or more expensive dwellings are unlikely to have ready access to funds to cover stamp duty ($19,200 for the current Perth median house price) and would therefore borrow this money as part of their mortgage arrangements.
“Whilst amortising stamp duty across the life of the loan removes the immediate burden, the real cost of the stamp duty after interest payments is significantly higher,” it said.
RIEWA said the cost of a $19,200 stamp duty over a 25 year loan at an interest rate of 9 per cent was a massive $161 a month.
While First Home Buyers have been given stamp duty relief with a $500,000 tax free threshold, trade up buyers and investors are feeling the pinch and with WA's strong demand for labour, the REIWA recommends housing stamp duty be lowered to reduce the high cost of moving interstate.
Join the discussion on Everything else about home loans
|