<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.</p>

<p>Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.</p>

<p>"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;</p>

<p>The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.</p>

<p>ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

<p>Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.</p>

<p>Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.</p>

<p>"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.</p>

<p>"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.</p>

<p>"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.</p>

<p>The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.</p>

<p>According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.</p>

<p>Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.</p>

<p>The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."</p>

<p>The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.</p>

<p>With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

<p>Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.</p>

<p><a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.</p>

<p>The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.</p>

<p>Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.</p>

<p>Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.</p>

<p>Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.</p>

<p>"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.</p>

<p>The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.</p>

<p>The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;</p>

<p>Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.</p>

<p>Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.</p>

<p>It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.</p>

<p>With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.</p>

<p>The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.</p>

<p>Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.</p>

<p>"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.</p>

<p>Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.</p>

<p>That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."</p>

<p>Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.</p>

<p>Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.</p>

<p>That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.</p>

<p>"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.</p>

<p>The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.</p>

<p>The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."</p>

<p><img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" /></p>

<p>Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.</p>

<p>Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.</p>

<p>"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."</p>

<p>Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.</p>

<p>Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.</p>


Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Stamp Duty

<html><body>
<div>AFG released its mortgage index for the September 2017, and it too showed a switch towards first homebuyers. </div>
<div> </div>
<div>First homebuyer activity has been buoyed by stamp duty concessions in New South Wales and Victoria. </div>
<div> </div>
<div>The average mortgage size rose to an all-time high of $491,952, up from $479,101 a year earlier.</div>
<div> </div>
<div>However, regulatory intervention has slowed the pace of the increase. </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-cDne2REAVJI/WeBUKQ-ez0I/AAAAAAAAmmI/56Y6ViVGspc7IB05l26LtM7zEAeqhF8awCEwYBhgL/s1600/AFG2.jpg"><img src="https://3.bp.blogspot.com/-cDne2REAVJI/WeBUKQ-ez0I/AAAAAAAAmmI/56Y6ViVGspc7IB05l26LtM7zEAeqhF8awCEwYBhgL/s640/AFG2.jpg" width="640" height="384" data-original-height="830" data-original-width="1380"></a></div>
<p> </p>
<div>The increase in mortgage size was driven by Victoria, Queensland, and South Australia.</div>
<div> </div>
<div>Elsewhere, macroprudential measures have evidently slowed the mortgage market.</div>
<p> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-10_x__ClhRU/WeBULX4Q45I/AAAAAAAAmmQ/cIzsSH9pYfUExKK7Xc1yWqfkHP76ANnnACLcBGAs/s1600/AFG1.jpg"><img src="https://4.bp.blogspot.com/-10_x__ClhRU/WeBULX4Q45I/AAAAAAAAmmQ/cIzsSH9pYfUExKK7Xc1yWqfkHP76ANnnACLcBGAs/s640/AFG1.jpg" width="640" height="392" data-original-height="826" data-original-width="1345"></a></div>
<p> </p>
<div class="separator"> </div>
<div>The figures for total lodgement volumes at the state level are necessarily seasonal, but simply underscore the sheer strength of the lending growth in Victoria. </div>
<div> </div>
<div>Victoria appears to be the only state where cooling measures have not had a material impact. </div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-PgbEKU0aL5c/WeBULOvd8AI/AAAAAAAAmmM/f9ZXSkoQD5geXz_-Sp6VXvi7UUlHDkC4wCLcBGAs/s1600/AFG3.jpg"><img src="https://1.bp.blogspot.com/-PgbEKU0aL5c/WeBULOvd8AI/AAAAAAAAmmM/f9ZXSkoQD5geXz_-Sp6VXvi7UUlHDkC4wCLcBGAs/s640/AFG3.jpg" width="640" height="386" data-original-height="819" data-original-width="1353"></a></div>
<p> </p>
<div>There has been a massive shift away from investors, down to just a 29 per cent market share, from above 40 per cent at the peak.</div>
<div> </div>
<div>The other notable trend was the shift away from the major market lenders.</div>
<div> </div>
<div>Market share was down to 64.4 per cent for the main players, the lowest such result since the global financial crisis. </div>
<p> </p>
</body></html>

pwargent-M4siyDbqQY

The return of the first home buyer: Pete Wargent

<html><body>
<p>Stamp duty isn't a much admired tax.</p>
<p>Except by governments that is!</p>
<p>The arguments against stamp and transfer duties include that they discourage labour force mobility, while making life challenging for first home buyers.</p>
<p>It's not hard to see why governments like them, though.</p>
<p>Over the year to February 2017 the NSW Office of State Revenue (OSR) alone recorded astronomical receipts of $9.4 billion.</p>
<p>Stamp duty is now accounting for more than a quarter of state government revenue in NSW.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/30/Chart-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Chart-1.jpg" alt=""></p>
<p>I noted last year how the NSW government has smashed its budget targets to leave itself with net debt of less than zero for the first time, largely thanks to this remarkable windfall.</p>
<p>A proposed alternative would be to put an annual tax on the unimproved value of residential land, including for the family home (there is already a land tax threshold in place, but it doesn't capture all homeowners due to an exemption on the family home).</p>
<p>The main challenge is that with residential land values in New South Wales of $1,657 billion, the annual tax would have to be quite significant to raise the equivalent $9.4 billion.</p>
<p>Recent proposals have included an annual land tax of 0.75 per cent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/30/Chart-2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Chart-2.jpg" alt=""></p>
<p>There are now just over 3 million dwellings in New South Wales, so another way to look at it is that households and owners of other residential dwellings may have to stump up on average $3,100 per annum to raise the equivalent amount of tax.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/30/Chart-3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Chart-3.jpg" alt=""></p>
<p>A proposed land value tax would typically deliver comparatively little pain for those living in an apartment, since the land value content of such dwellings is relatively low.</p>
<p>On the other hand I think of the retirees on my street who now have very valuable land under their homes, for which the annual land tax bill would be impossible for them to pay.</p>
<p>So the argument goes, by taxing people on their homes they will be 'incentivised' to move somewhere smaller and more appropriate for their needs.</p>
<p>It could certainly happen over time, though it would be a brave move politically.</p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Stamp duty bonanza: Pete Wargent 

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<p>First home buyers should pay attention to market conditions, not the incentives on offer.</p>
<p>According to recently released housing finance data from the Australian Bureau of Statistics, the volume of new loans to first home buyers in New South Wales and Victoria has climbed substantially over recent months as value growth has slowed and even begun to fall in Sydney and Melbourne. </p>
<p>First home buyers must be vigilant about purchasing homes and not just be lured into buying at the peak of the market because of attractive incentives.</p>
<p>In New South Wales, from 1 July 2017 first home buyers don’t have to pay stamp duty for both new and existing homes for properties up to $650,000.</p>
<p>Stamp duty payable is reduced for buyers paying between $650,000 and $800,000.  In Victoria, if you buy a new or established home from July 1 2017 no stamp duty is payable on homes worth less than $600,000 and stamp duty is reduced for properties worth between $600,000 and $750,000.</p>
<p>The removal of stamp duty has resulted in a substantial increase in first home buyer housing finance commitments. </p>
<p>Over the six months from July to December 2017 there were 14,279 first home buyer finance commitments in New South Wales and 18,675 in Victoria.  To put this into some sort of perspective, over the six months prior to the new incentives going live there had been 7,891 first home buyer housing finance commitments in New South Wales and 12,683 commitments in Victoria.  This represents an increase in first home buyer volumes over the two six month periods before and after the changes to incentives of 81.0% in New South Wales and 47.2% in Victoria.</p>
<p>Since the stamp duty changes, average loan sizes have increased by 1.3% in New South Wales compared to an increase of 1.1% over the previous six months.  This seemingly suggests that the first home buyers entering the market are not using the removal of the stamp duty barrier to borrow more. </p>
<p>In Victoria, it is a bit of a different story with average first home buyer loan sizes increasing 7.0% over the past six months compared to a 2.7% increase over the previous six months.  This would seem to suggest in Victoria, the stamp duty concessions are leading to mortgagees borrowing more.</p>
<p>The most concerning thing for any potential first home buyer in the current New South Wales and Victoria markets should be the lure of entering a market which has been growing rapidly for many years.  In fact, recent data for Sydney and Melbourne indicates that values are now declining. </p>
<p>Across all of New South Wales, values have fallen -2.4% from their August 2017 peak to January 2018 with values -3.1% lower in Sydney and not yet declining in regional New South Wales.  In Victoria, values are -0.1% lower than their November 2017 peak with declines of -0.4% in Melbourne and no declines as yet in regional Victoria.  An important point to note is that the rate of value growth is slowing in regional areas of New South Wales and Victoria although the slowdown is greater in regional New South Wales to-date.</p>
<p>While those declines may sound quite minor, first home buyers are generally most sensitive to changes in interest rates.  Although the cash rate is expected to be on hold until early 2019, the combination of already falling dwelling values and potentially higher mortgage rates in the medium-term, these factors should raise some alarm bells for potential buyers. </p>
<p>For first home buyers there may be a sense that the removal of stamp duty along with the falling share of investors in the market creates the opportunity for entry however, ideally you do not want to be buying into a market which has only recently entered a downturn. </p>
<p>The best bet for potential first home buyers may not be to jump at the incentives which are currently available.  With values declining and investor demand continuing to trend lower a better option may be to remain on the sidelines somewhat longer as values potentially continue to slide.  By doing this you potentially avoid going into negative equity immediately, you potentially buy at a lower price and you have time to save an even larger deposit for your mortgage. </p>
<p>Furthermore, for well qualified borrowers with substantial deposits banks are competing heavily and offering substantial discounts for owner occupiers taking out principal and interest mortgages so if you take time and shop around you may be able to get a really good mortgage rate.</p>
<p><em>Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://www.propertyobserver.com.au/https://www.corelogic.com.au/taxonomy/term/28"><span class="s2">here</span></a>.</em></p>
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ckusher-ujnxiKuFQs

Market conditions more important than incentives on offer for FHB's

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<p>RE/MAX Western Australia’s managing director Geoff Baldwin has spoken out against potential changes to current stamp duty dispensations for first home buyers, saying that if the relief was decreased or abolished there would be dire effects across the market.</p>
<p> “The negative affect the ceasing of stamp duty relief for first home buyers would be extremely damaging however, when this segment of the market stagnates it ripples up through all price ranges and the effect would be crippling”, said Baldwin.</p>
<p>“If you take a line through New South Wales and Victoria where subsidies have been abolished, first home buyer activity has dropped to 8% and 12% respectively, compared to the current 22% in Western Australia (RP Data).</p>
<p>“Historically, in a healthy market, first home buyers account for around 25 to 30% of all buyers.</p>
<p>“The established home market has already taken a massive hit through the government’s recent actions in changing the First Home Owner Grant whereby those building new homes receive $7,000 and people buying established only $3,000.</p>
<p>“To abolish first home owner stamp duty concessions would be extremely short sighted as it will a negative impact the whole market and hence the Industry, just at a time where we are again experiencing some prosperity in the property sector.”</p>
<p> </p>
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jrichardson-uRX5hFdKfN

Rumoured cuts to stamp duty relief for first home buyers would be “extremely damaging”: RE/MAX

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<p>As many predicted some time ago, the newly created investment market, where we have seen approvals for high-rise apartments hit levels never seen before, will now see a massive correction.</p>
<p>In December 2008, the rules for off-the-plan apartments had a significant change when the ratio for foreign investors was moved from 50 per cent to 100 per cent. Developers could not believe their luck, as this decision created new rivers of gold, albeit an eight year run.</p>
<p>The governments then got involved by increasing stamp duty for foreign buyers, the Chinese government shut down the facilities permitting vast amounts of monies to be withdrawn from China and the major Australian banks stopped lending to foreign buyers. When combined, this has created the perfect property storm although the gamble of relying on foreign buyers acquiring the majority of these new apartments was always fraught with danger.</p>
<p>What we will see in 2017 is thousands and thousands of apartments off-the-plan coming back onto the market and the big question that remains unanswered is; what will be the percentage drop from the original contract prices? It has already been mentioned that analysis of every new development in Australia that settlement defaults will be between $1 billion and $1.5 billion every month over the next twelve month window.</p>
<p> </p>
<p>A saving grace will be that the existing housing market will continue to go on-wards and upwards simply because fewer and fewer households are selling due to the exorbitant selling costs – namely stamp duty. If you look at the approximate 700 hundred suburbs that make up Sydney – it would be fair to suggest that at least 70 per cent of these suburbs are not creating any new houses for consumption.</p>
<p>The NSW government has gone down the track of high density with next to no new infrastructure to absorb this construction so in many areas our roads will become gridlocked.</p>
<p>At some stage an independent body will commission a report to look at all the bushland within Sydney to then ascertain how many tens of thousands of residential building blocks can be created to ease the demand of all those wanting to live in Sydney.</p>
<p>We need to bear in mind that the population within Sydney will hit 5 million in a matter of months and our population growth is years ahead of initial projections. Building tens of thousands of apartments does not in any way, shape or form ease the demand for established houses.</p>
<p>Of course, there is always a few who throw in that recession word and don’t forget that a few some years ago suggested that 2016 would see Australia fall into a long overdue recession. They would have been somewhat aggrieved when last quarter Australia posted 25 years of economic growth.</p>
<p>Many property forecasters were quick to say, at or about this time last year, that the Sydney property market was easing (which it did) and that this was the start of a price correction. As a few of us pointed out this was more the case of buyer fatigue (which it was) with 2016 posting greater price growth than 2015. Whichever way you want to look at this the heart of the problem is that demand for established housing far exceeds supply.</p>
<p>A significant correction in the new apartment market will have next to no effect on the established housing markets because they are two different buyers. Secondly, the vast majority of the new apartment investor markets are foreign buyers so if they default there is absolutely no knock on effect into the established housing markets.</p>
<p>If anything, we will see the Australian buyers cherry-pick this market, given the cash rate will go lower and then, in turn, will chase returns. The family home is at record highs so via negative gearing households will be mopping up the newly created apartment markets at much lower entry levels with so many apartments expected to default.</p>
<p>Some will be saying what could possibly go wrong following Australia’s unprecedented 25 years of economic growth? Wages have fallen from 3.5 per cent growth in 2012 to 2 per cent in 2016. A positive sign is that population growth in 2012 was 1.8 per cent and in 2016 it dropped to 1.3 per cent. Household income growth and consumer spending are in decline so those economy drivers will be closely monitored in the September quarter of 2016.</p>
<p>Whilst some are saying retirees are doing it tough, we need to keep in mind that their homes are at presently at the highest value ever so many are taking advantage of that by taking out reverse mortgages – otherwise known as spending the kid’s inheritance (SKI).</p>
<p>The major problem with Sydney house prices is that planning by state governments, at best, has been appalling. Even today there is no plan – rather, approve thousands and thousands of new apartments, sell them offshore and bank the stamp duty and land taxes.</p>
<p>So next time you are caught in traffic, just think, how is Sydney going to cope with all these thousands of new apartments under construction?</p>
<h4>MOSMAN – 2088</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 52</li>
<li>Number of houses on the market last week – 52</li>
<li>Number of houses on the market this week – 47</li>
<li>Number of apartments on the market this time last year – 51</li>
<li>Number of apartments on the market last week – 34</li>
<li>Number of apartments on the market this week – 32</li>
</ul></ul>
<h4>CREMORNE – 2090</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 7</li>
<li>Number of houses on the market last week – 9</li>
<li>Number of houses on the market this week – 9</li>
<li>Number of apartments on the market this time last year – 22</li>
<li>Number of apartments on the market last week – 12</li>
<li>Number of apartments on the market this week – 14</li>
</ul></ul>
<h4>NEUTRAL BAY – 2089</h4>
<ul><ul>
<li>Number of houses on the market this time last year – 3</li>
<li>Number of houses on the market last week – 11</li>
<li>Number of houses on the market this week – 4</li>
<li>Number of apartments on the market this time last year – 29</li>
<li>Number of apartments on the market last week – 21</li>
<li>Number of apartments on the market this week – 19</li>
</ul></ul>
<p><em>ROBERT SIMEON is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. </em></p>
<p><em>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000.</em></p>
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robertsimeon-hRNTwJyXkQ

Some property markets are correcting – other markets booming: Robert Simeon

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-183755154986059073" class="post-body entry-content">
<div>New South Wales stamp duty and land transfer receipts were back up to $9.4 billon over the year to January 2017.</div>
<div> </div>
<div>The rolling annual number of transactions is down from previous heights, though remains high with so many apartments being constructed.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/21/NSW.jpg" target="_blank">Click to enlarge </a></div>
<div> </div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/NSW.jpg" alt=""></div>
<div> </div>
<div>
<div><span>With a record construction boom and rising Sydney dwelling prices, it shouldn't be a surprise that stamp duty and transfers paid rose to record highs in FY2016.</span></div>
<div><span> </span></div>
<div><span>In fact, the NSW state budget surged into a massive $4.7 billion surplus in 2015-16.</span></div>
<div><span> </span></div>
<div><span>This result was miles ahead of forecasts and left the state government with net debt of less than zero.</span></div>
<div><span><br>Yes, the state government moved into a cash positive position for the first time ever.  </span></div>
<div><span> </span></div>
<div><span>To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole in the economy that will be left by declining housing construction from 2018 forth. </span></div>
</div>
<div><span> </span></div>
<div><span>Plenty more where this came from in 2017 as apartment completions hit the market (recall too that the 2016 NSW Budget introduced a 4 per cent surcharge purchaser duty on the acquisition of residential real estate by foreign persons from June 21, 2016.).</span></div>
<div><span> </span></div>
<div><span>It's important to recognise that the record windfall represents a surge in pre-sold apartments as much as any recent increase in market liquidity, as stock on market levels to date remain relatively low.</span></div>
<div><span> </span></div>
<div>
<div><span>The number of transactions jumped to above 25,000 in November 2016, and total receipts seared to an unprecedented $1.78 billion in the month.</span></div>
<div><span> </span></div>
<div><span>Just to put that number in context, the prior year equivalent figure had been only $729 million, and the previous record for any individual month was just $1.2 billion.</span></div>
<div><span> </span></div>
<div><span>The November number was so much higher than the prior year that it seemingly defies logic, although there had been a change in purchase duties for non-residents, and then there was the $16 billion Ausgrid sale.</span></div>
<div><span> </span></div>
<div><span>In January 2017 there were 17,473 transactions, a slightly lower figure than in the prior year.</span></div>
</div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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NSW stamp duty boom continues in 2017: Pete Wargent  

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<p>An absolutely wild $8.63 billion in stamp duty and land transfer duty receipts was raised over the year to September for the NSW Government, according for the Office of State Revenue (OSR). </p>
<p>This is a totally unprecedented windfall for any state or territory in Australia.</p>
<p>Note how annual stamp duty receipts (red line) have remained above $8.6 billion even in the face of lower volumes (dotted blue line) this year.</p>
<p>Simply, this is due to higher dwelling prices in Sydney. </p>
<p><a href="/images/2016/12/NSW.jpg" target="_blank">Click to enlarge</a></p>
<h3 class="post-title entry-title"><img src="/images/2016/12/NSW.jpg" alt=""></h3>
<div id="post-body-5759172691898837383" class="post-body entry-content">
<br><div> </div>
<div>NSW's budget surged into a massive $4.7 billion surplus in 2015-16.</div>
<div> </div>
<div>This result was miles ahead of forecasts and leaves the state Government with net debt of less than zero.</div>
<div> </div>
<div>The state government is now in a cash positive position for the first time ever.  </div>
<div> </div>
<div>To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole that will be left by declining housing construction from 2018 forth. </div>
<div> </div>
<div>With commodity prices recovering, financial markets have priced in a change in the outlook, with Australia's 10 year government bond yield now sitting back at 2.37 percent, having slumped quite sharply since May. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Stamped out NSW duties

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<p>Higher priced properties in Sydney and Melbourne is not the only obstacle stopping people from entering these markets.</p>
<div>
<p>Varying from state to state, another factor contributing to the high entry cost to housing is Stamp Duty, particularly in Australia’s largest two capital cities.</p>
<p>Levied by each state and territory and payable by the receiver when a property is transferred, stamp duty varies remarkably across the states and territories based on the price of the property, the type of buyer (owner occupier / first home buyer / investor) and the type of property. </p>
<p>CoreLogic head of research Tim Lawless said, “Calculating how much stamp duty is applicable on a property purchase can be confusing due to the significant differences regionally, but also due to the complexity of rules, concessions and limits that are applied to the calculation of stamp duty.” </p>
<p>Based on the median dwelling value across each capital city, stamp duty estimates can range from a whopping $32,680 in Melbourne to a modest $9,000 in Brisbane.</p>
<h3>Median dwelling value</h3>
<p><img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image1.jpg" alt="2016-12-12--image1" width="500" height="261"></p>
<p>Mr Lawless said, “Even though the median dwelling value is $200,000 higher in Sydney compared with Melbourne, the cost of stamp duty on the median valued home is actually slightly lower in Sydney, at $31,763, due to higher stamp duty rates in Victoria.”</p>
<h3>Estimated stamp duty payable<br>on median value dwelling</h3>
<p><img src="https://corelogic.com.au/resources/property-pulse/article-graphs-img/2016-12-12--image2.jpg" alt="2016-12-12--image2" width="500" height="543"></p>
<p>In some states, first-time home buyers can be offered substantial concessions on stamp duty; however there is generally an upper limit. </p>
<p>For example, first home buyer property transactions in Victoria with a price tag of $600,000 or less will enjoy a 50% reduction on their rate of stamp duty. </p>
<p>In Queensland, first home buyers purchasing a property priced less than $550,000 can realise a discount of more than $8,000.</p>
<p>Stamp duty rates can also be higher for investors. </p>
<p>Surprisingly, Mr Lawless observed that New South Wales, which is the state with the largest proportion of investors, does not charge a premium rate of stamp duty on this segment of the market.</p>
<p>The three largest states also charge a stamp duty premium on property purchasers by foreign buyers.</p>
<p>He said, “Because stamp duty costs are percentage based, as dwelling values move higher, stamp duty costs can rise disproportionately faster due to bracket creep. </p>
<p>Over the past five years dwelling values in these two cities have increased by 62% and 38% respectively which implies at least a commensurate rise in stamp duty costs in these cities.</p>
<p>The high transactional costs associated with housing are likely to be one factor that is contributing to a slowdown in the number of sales across the country.” </p>
<p>While stamp duty is generally the largest transactional cost associated with buying, there are other costs such as building and pest inspections, conveyancing, removalists and more that also need to be factored in and are likely to be dampening participation in the housing market. </p>
<p>Mr Lawless said, “Add to this the fact that most lenders will be seeking a 20% deposit and the barriers to entry become even more substantial.”</p>
<p>For state governments, stamp duty is one of the largest revenue sources. </p>
<p>In the 2014-15 financial year, state and local government taxation revenue was recorded at $89.278 billion having increased by 7.0% over the year. </p>
<p>The taxation revenue was comprised of $45.203 billion or 50.6% from property related taxes (mostly stamp duty and municipal rates). </p>
<p>While total tax revenue increased 7.0% over the year, property tax revenue increased by 10.5% highlighting that property taxes are the largest source of taxation revenue for state and local governments and are rising at a rapid pace.</p>
<p>Mr Lawless said, “If transaction numbers across the housing market continue to trend lower, state governments are likely to encounter a budget hole as stamp duty revenue falls.   </p>
<p>For this and associated reasons, we may find state governments become more serious about considering a broader based land tax that is applicable to all property owners rather than a stamp duty that is payable only across the small percentage of properties that transact each year.”</p>
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tlawless-5VLUrbAk9s

Stamp duty an obstacle for first home buyers entering the market

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<p class="Body"><span class="Body__Char">The developer lobby is the boy who cried wolf in Australian real estate. He’s actually right about something and desperately wants to be heard, but no one is listening anymore.</span></p>
<p class="Body"><span class="Body__Char">The recurring topic is the cost of housing. It’s absorbing far too much time and energy for stakeholders everywhere, because politicians find the obvious solutions unpalatable.</span></p>
<p class="Body"><span class="Body__Char">If politicians stopped taxing real estate to within an inch of its life, life for home-buyers would become so much easier. The cost of a new home for a first-timer could be massively reduced. One estimate suggests the typical new home in Sydney could cost $250,000 less.</span></p>
<p class="Body"><span class="Body__Char">The developer lobby argues that stamp duty is the single biggest problem. I have to agree that stamp duty is an obscenity. Having to cobble together a deposit is a big enough challenge for property buyers, without having to save to pay an exorbitant and unjust tax as well.</span></p>
<p class="Body"><span class="Body__Char">Stamp duty on the median priced dwelling in Sydney ($752,000 according to RP Data) is almost $30,000. It’s similar sum for the same purchase in Perth, while anyone buying a home at that price in Melbourne would pay over $40,000.</span></p>
<p class="Body"><span class="Body__Char">It’s tantamount to paying a fine for the crime of buying a home or an investment to fund your retirement.</span></p>
<p class="Body"><span class="Body__Char">The developer lobby has been targeting this issue with one of its endless campaigns. It wants stamp duty scrapped. It presents some compelling evidence, but I doubt anyone important will take any notice because builders and developers have been crying wolf on multiple issues (e.g. the mythical housing shortage crisis) for years.</span></p>
<p class="Body"><span class="Body__Char">And its proposal overall is a massive turnoff. Its argument essentially is this: everyone should pay more tax so that the development industry can make more money.</span></p>
<p class="Body"><span class="Body__Char">The Property Council of Australia, arguably the most self-absorbed group in society, is suggesting that stamp duty should end and the lost government revenue be recouped by increasing the GST. </span></p>
<p class="Body"><span class="Body__Char">The proposal, therefore, is that everyone should pay more for everything they buy so that real estate can be exchanged cheaper. I’m sure that’ll go over well with the general public and the politicians they elect.</span></p>
<p class="Normal">The council argues stamp duty is inefficient and "a runaway cash grab that's hurting Australia's economy and locking out potential home buyers". It says the community should be outraged at figures like these:</p>
<p class="List_0020Paragraph">The cost of stamp duty to a home buyer with an average-sized mortgage has increased 795% in Melbourne and 749% in Sydney in the past 20 years. </p>
<p class="List_0020Paragraph">Property owners have become Australia's largest collective taxpayer, contributing 9% of total tax revenue.</p>
<p class="List_0020Paragraph">Property taxes make up as much as 46% of state, territory and local government budgets. Stamp duty alone contributes more than 20% of the total revenues of the NSW,      Victoria, Western Australia and Northern Territory governments.</p>
<p class="List_0020Paragraph">The cost of stamp duty over the life of an average mortgage is now $61,542 in Sydney, $56,616 in Melbourne, $49,701 in Darwin and $35,427 in Canberra.</p>
<p class="Normal"><span style="line-height: 1.3em;">The Housing Industry Association, another noisy member of the developer lobby, says property </span><span class="Normal__Char" style="line-height: 1.3em;">taxes add around $250,000 to the price of a new home in Sydney. That, it says, accounts for 40% or $1,350 per month for the life of a home mortgage.</span></p>
<p class="Normal"><span class="Normal__Char">"Taxes on new housing are a brake on economic activity, and represent a constraint on housing affordability and labour productivity," the association's head of industry policy Graham Wolfe says.</span></p>
<p class="Normal"><span class="Normal__Char">Wolfe says stamp duty is the most inefficient tax in the system. However, he says there are many other taxes on new homes, including developer infrastructure levies, which can add $70,000 to the cost of a new home-and-land package. GST is also levied on new homes, but not existing properties, adding tens of thousands of dollars to the cost.</span></p>
<p class="Normal"><span class="Normal__Char">The problem is: state governments will never give up their property taxes. They’re addicted to them.</span></p>
<p class="Normal"><span class="Normal__Char">We’ve seen what’s happened with the ACT Government. It went to an election promising to eliminate stamp duty within a specific time frame. Now they’re reneging on their promise. They just can’t let go of all that lovely money.</span></p>
<p class="Normal"><span class="Normal__Char">And, for them, the protests of the developer lobby are just background static. No one is listening.</span></p>
<p><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> </em></p>
<p>Terry was recently joined by <em>Property Observer</em> editor at large Jonathan Chancellor for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.</p>
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terryryder-YECXbqmri2

State governments addicted to property tax: Terry Ryder

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<p>The NSW Opposition has promised a staggered stamp duty payments scheme for first home buyers if it wins government at the upcoming March election.</p>
<p>It was an undertaking revealed on the Channel 7/Daily Telgraph leaders debate i<span style="line-height: 1.3em;">n response to an audience question about what Luke Foley and Mike Baird would do to make it easier for first home buyers to enter the hot NSW market.</span></p>
<p>“Look at a scheme where people, rather than being charged 100 per cent of stamp duty upfront, they could pay it back in instalments over several years,” the NSW Opposition leader, Luke Foley suggested, seemingly foreshadowing a more detailed policy announcement.</p>
<p>Advising<span style="line-height: 1.3em;"> the key to lowering prices was increasing the number of houses built, Premier Mike Baird said </span><span style="line-height: 1.3em;">he had introduced a scheme where first home buyers purchasing new dwellings under $550,000 are exempt from paying stamp duty.</span></p>
<p><span style="line-height: 1.3em;">Stamp duty is one of the big upfront costs in buying a house especially if the buyers don't wish to be </span>corralled<span style="line-height: 1.3em;"> into buying a new house or flat.</span></p>
<p><span><a href="https://www.apps08.osr.nsw.gov.au/erevenue/calculators/fhnh.php" target="_blank">Stamp duty is calculated</a> by applying a sliding scale of state government taxation, depending on the value of the property purchase.</span></p>
<p><span><span><span>The NSW first-time buyer concession in place for stamp duty is designed to make it easier for peop</span></span></span>le to get their first home, but only news homes. </p>
<p>NSW is probably the most generous state.</p>
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<p>The scheme was established to assist eligible first home owners to purchase a new home or build their home by offering a $15 000 grant. The grant applies to new homes only and does not apply to the purchase of an established home, vacant land, business premises or a holiday house. The grant will reduce to $10,000 on 1 January 2016. </p>
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<p>The First Home New Home scheme commenced from 1 January 2012 and provides eligible purchasers with exemptions from transfer duty on new homes valued up to $550,000 and concessions for new homes valued between $550,000 and $650,000.</p>
<p>Eligible purchaser buying a vacant block of residential land to build their home will pay no duty on vacant land valued up to $350,000, and will receive concessions for vacant land valued between $350,000 and $450, 000.</p>
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