[staringclown]

John Brumby's $3.6 billion stamp duty steal

This is awe inspiring journalism. I have a vague feeling the property juggernaut wants stamp duty reduced... They're getting angry.

Quote

Despite more than 92 per cent of heraldsun.com.au readers calling for relief from the tax slug from the Government and the Opposition, the Premier sang the praises of Victoria’s huge stamp duty take - the highest in Australia.

Quote

The tax grab is set to become a major election issue, with new figures showing the stamp duty rip-off increased by $800 million last year to $3.6 billion.

More than 92 per cent of the 2600 readers who have voted in a heraldsun.com.au poll this morning are demanding the State Government reduce the tax burden.

Another 805 had signed a heraldsun.com.au online petition by 10am this morning.

Fill out our petition to end the stamp duty rip-off

Quote

REIV spokesman Robert Larocca said it was time stamp duty tax was cut.

Can anyone else see the problem with this survey question? Only the most heartless could say 'no'.

Quote

Should the State Government end its stamp duty rip-off to help struggling home buyers?
Yes
No

[tor]

staringclown, on 16 September 2010 - 09:02 AM, said:

...Can anyone else see the problem with this survey question? Only the most heartless could say 'no'.

Have you stopped beating your wife?

[ummester]

In most states, most FHBs don't pay stamp duty anyway. Cutting it out is only going to help investors, and why shouldn't the gubberment gets it's share of the investment ponzi? Not that they are doing anything with it apart from trying to stimulate the same ponzi but hey. I went No - must be heartless then.

Does beating them help?

This post has been edited by ummester: 16 September 2010 - 09:27 AM

[tom]

staringclown, on 16 September 2010 - 09:02 AM, said:

Can anyone else see the problem with this survey question? Only the most heartless could say 'no'.

I dashed straight over there and said "no". But here I said yes and no. I only speak the truth on simplesustainable and no was the most correct answer of the yes and the no for me the options given by the herald sun.

Stamp duty is an impediment to an efficient market sure but I am afraid because other parts of Australia's housing market are so regulated taking the regulation off here would increase prices of homes.

At present stamp duty is one impediment to getting a loan. i.e. on top of saving a deposit you have to also save to pay this assuming you are not a FHB but in vic even these guys have to pay it, I think? This was the case when I lived in vic in 2005 to 2007. Of course this is why RE agents and financiers would want to get rid of it, it eats into the starting equity so either they take on more risk or don't extend the same amount of credit a lose lose for them. So overall I think they should keep it unless we had an efficient market on the supply side which we do not, i.e. no matter what prices did enough land was released that each new block on the fringe only moved with inflation as house construction does...

So I would be all for it's removal on new homes only. This is currently the case in NSW at 50% but really doing very little to supply due to the short dated nature of it. What developer is going to get a development through knowing an incentive has a 6 month validity. I think there it was to aid in clearing stock at stupid prices like all our government policies seem to be in aid of not to bring on new supply.

[Pr0]

I have said a bit fat NO!

If Labour lose the election it won't because of the Stamp Duty, there are so many other issues........

What will it help? FHB my foot, will it help in reducing prices? NO! Will it help Real Estate Agents? Yes!

Will it get rid of those people who have multiple IP's? No

2 properties just sold in my street, 2 bedroom flats actually. 1st one went for $710,000 2nd went for $567,000 I would say if stamp duty was cut the prices would be even more!

My street is a million $ street, very very strange indeed!

There is an answer to reduce to the prices of property, however no one has the stomach to do it!

[Dose]

I LOVE this.

Eliminate stamp duty! I say YES!

Suddenly you have a massive gov't tax hole AND property crashes.

Bring it on Big Thinkers! Sooner the better! HezzaSun say YES! Vote NOW!

[Turkey]

Another issue is that stamp duty is a deterrent to house flipping.

I could imagine it becoming quite a frenzy if it is removed or significantly reduced.

I'm generally not a major fan of big taxes but in this case its benefits may outweigh the negatives, I'm not sure though.

[staringclown]

Dose, on 16 September 2010 - 11:58 AM, said:

I LOVE this.

Eliminate stamp duty! I say YES!

Suddenly you have a massive gov't tax hole AND property crashes.

Bring it on Big Thinkers! Sooner the better! HezzaSun say YES! Vote NOW!

Are you sure? A $20000 discount on property for everyone. This is stimulus 2.

[Dose]

staringclown, on 16 September 2010 - 12:06 PM, said:

Are you sure? A $20000 discount on property for everyone. This is stimulus 2.

I'm taking the piss but absolutely!

We have a situation where government needs to start finding money to keep the oldies happy while the property investment lobby calls to cut billions from the public purse.
This is fantastic stuff!
Ideas....? Where's Brumbles going to find the money to entertain this "proposal" from the PropLob? At some point it will be tempting for gov't to say it's the price and not the tax at the root of the problem.

[Pr0]

The Victorian State Government won't budge on stamp duty, it is not as though it is the 1st time that this has come up in Election time. Have not heard too much from the opposition the point being this is revenue what will they replace the tax with more speed cameras?

The root cause of the problem is what people are paying for properties, the only reason for the increase of revenue is because of the the ridiculous prices that people are paying and still paying for property.

The average wage in the Stonnington-Prahran/Windsor area is apparently $82,700, there have been articles of the nature that prices are dropping. From what I am seeing around Prahran, Sth Yarra, Malvern, Sth Melbourne, Port Melbourne, Albert Park and even Glen Iris is that property prices are still increasing. Auction rates maybe dropping however there does not appear to be many properties long after with the For Sale sign still on them.

Stamp Duty revenue will only be reduced if the prices of property drop and looking at this spring and summer it has yet to be seen that prices will drop.

The amount of banter or articles is no different to previous election times in Victoria. Brumby is a stickler this election will be lost on crime, utility prices, Miki etc.

The Liberal party if it wins will only be for change, this state is a Labour State. Liberals would be lucky to go 2 terms!

Everyone is hoping for price reductions and unless there is a GFC 2 which I doubt, the only other way is a increase in Rates, unemployment goes up very fast.

If the Federal Government abolishes Negative Gearing and Banks double the rates for Investment Properties!

What about regulation being introduced for properties?

The chances of this happening are very slim indeed.

Good times are rolling on, people are out and about again eating, shopping and buying properties at higher prices etc.

REIV are licking their lips of the prospect of a bumber Spring and Summer

Don't wan't to be a party pooper, good times are rolling on...

That Balloon or Bubble is going to get so big it will carry Australia to the top of the world!

The discussion on Stamp Duty is only that as nothing will come of it!

[Bernard L. Madoff]

[quote name='Pr0' date='16 September 2010 - 11:07 PM' timestamp='1284644279' post='33198'

Good times are rolling on, people are out and about again eating, shopping and buying properties at higher prices etc.



[/quote]
You reckon? Retail figures suck. The only good sales are with heavy discounting. When a family on an average income is burning $40K a year on the shelter there isn't a lot left to play with.

[Pr0]

Bernard L. Madoff, on 16 September 2010 - 03:22 PM, said:

You reckon? Retail figures suck. The only good sales are with heavy discounting. When a family on an average income is burning $40K a year on the shelter there isn't a lot left to play with.

Is this family one you know or is it families shown in the media? I ask solely on the thought of having to spend $40K a year on shelter quite excessive, the payments are monthly or fortnightly?

The Cafe's and resturants are filling up again, what do I have to do film it for you? go out and see with your own eyes, Chapel street as of late has been buzzing. Yes been sales on as always, the past 12 months have been discounts here, city, Chadstone etc point is before was a little too empty now with its getting busy, busy and busy.

The Stores are they really discounting or is it marked up prices still with a discount sticker?

The Economy is in good shape, don't you think? Australia is an incredible place to be!

[Bernard L. Madoff]

Pr0, on 16 September 2010 - 10:38 PM, said:

Is this family one you know or is it families shown in the media? I ask solely on the thought of having to spend $40K a year on shelter quite excessive, the payments are monthly or fortnightly?

The Cafe's and resturants are filling up again, what do I have to do film it for you? go out and see with your own eyes, Chapel street as of late has been buzzing. Yes been sales on as always, the past 12 months have been discounts here, city, Chadstone etc point is before was a little too empty now with its getting busy, busy and busy.

The Stores are they really discounting or is it marked up prices still with a discount sticker?

The Economy is in good shape, don't you think? Australia is an incredible place to be!

A $450,000 home loan @7.5% paid fortnightly is $40K a year.

Just bought a $1000 laptop for $550; Bought some label jeans (made in China) for $19.

Buying a Panini and an Espresso for $15 on the visa is no reflection on the Australian economy.

[Charles Bukowski]

I just bought a 50 inc panasonic plasma for $900 and a new microwave for $49 and a sandwich maker for $9.
And WA isnt known for its bargains.

[Pr0]

Bernard L. Madoff, on 17 September 2010 - 04:47 AM, said:

A $450,000 home loan @7.5% paid fortnightly is $40K a year.

Just bought a $1000 laptop for $550; Bought some label jeans (made in China) for $19.

Buying a Panini and an Espresso for $15 on the visa is no reflection on the Australian economy.

$450,000 that is a fair size loan, is that with Stamp Duty or without it?

Sizable amount of money in anyones terms, you would think that would be affordable if one gets that type of loan including Rate rises, Utility rises and Council Rate rises?

I think that being positive about everything which includes all the beautiful figures and statistics that are produced day to day on the Australian Economy past and present is correct as for a while back there I was getting a little upset thinking it cannot be real, taking the time to reflect and have a little holiday. Made me look a little at my own views and have seen that maybe I was a little too harsh in my critism of properties, economics and Debt.

The truth is people are still buying whether it be housing or personal products, renovations seem to be going on most places that I walk around so more money there. Alot of products that are made overseas are always cheap to buy, otherwise we would have factories here, the costs are cheap and they are marked up to ensure that there is profit.

What we may see as discounted is really still marked up as you would not sell something and make a loss on it, I don't think it is really good business. Same for the foods at the Safeways and Coles etc may have the weekly specials but you really know that they are still marked up to ensure that the profit line is always greater in the year ahead. You know it is probably cheaper to grow it yourself, though not many people want to nor do they have the backyards anymore as there is a building in it!

I have just purchased a Hot Water unit, a Fridge and a couch several thousands of $ yet I would not do it if I could not afford it, initially on the Credit card as is mostly everything else though I can pay it off when due as why would I buy if I could not.

Surely people can obviously afford to pay off the card, I mean why have it if you cant?

Whats the specs on your laptop? are you happy with it?

I suppose we should be grateful we dont have stamp duty on everything that we buy!

Australia looks like it is going to hold up and obviously property prices are still growing, I have said that my street is a million $ street these days I would not of thought this years ago, though it is now. I have 3 years on my 10 year plan to go so I am trying to be more positive on everything. Not being a Bull as I don't agree with them though being a Bear I was too Grizzly so now want to be something more positive and believe in what is in the Economy is the real deal.

Australia is a great place to be!

[Chimerica]

Pr0, on 16 September 2010 - 10:38 PM, said:

Is this family one you know or is it families shown in the media? I ask solely on the thought of having to spend $40K a year on shelter quite excessive, the payments are monthly or fortnightly?

The Cafe's and resturants are filling up again, what do I have to do film it for you? go out and see with your own eyes, Chapel street as of late has been buzzing. Yes been sales on as always, the past 12 months have been discounts here, city, Chadstone etc point is before was a little too empty now with its getting busy, busy and busy.

The Stores are they really discounting or is it marked up prices still with a discount sticker?

The Economy is in good shape, don't you think? Australia is an incredible place to be!

Melbournites have seen their 'wealth' increase by 18% this year through rising house prices so they are more confident to flash the cash or whack it on credit. It's why continuing rising house price values are essential in consumer confidence and gets the numpties spending.

[Charles Bukowski]

Pr0, on 17 September 2010 - 08:30 AM, said:

Australia looks like it is going to hold up and obviously property prices are still growing,

Obvious to who? Not obvious to me

[wim]

Quote

$450,000 that is a fair size loan

Yet this is the cost for new entrants to an average (read median) place. Glad we can agree on something.