The Real Estate Institute of Western Australia (REIWA) urged the Government of Washington State and the opposition to take further action regarding the stamp duty.
Annual building sales in WA increased from more than 71,000 in 2013 to less than 41,000 in 2018. Stamp duty has had a significant impact on sales because the tax costs buyers thousands of dollars on the purchase of their home, according to REIWA President, Damian Collins [
"Instead of a large initial tax bill requiring additional borrowing for many people, homeowners could choose to pay a much smaller annual fee based on the immutable value of their land, which would be distributed over several years. , creating a steady stream of reliable revenues for state and territory governments, "Collins said.
Under the present system, a deposit of $ 50,000 for a house at the current median price of $ 495,000 would result in a stamp duty of $ 17,765. Taking into account the cost of the lenders mortgage insurance of $ 16,010, a buyer should incur a larger mortgage, worth almost 95% of the property value, to cover costs.
"By moving to a land-based tax system, there would be a number of indirect benefits, including providing the government with more revenue to re-inject into the economy. This would allow greater mobility of housing in the community. Households could be closer to the centers of employment and activity, thus reducing congestion, Collins said.
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