…And why the Queensland Government is making the housing crisis worse The Real Estate Institute of Australia (REIA) kicked off a multi-year campaign this week that aims to start a conversation across the country about removing stamp duty fees from the overall cost of purchasing a home. The national campaign is called “Axe the Tax”,…
…And why the Queensland Government is making the housing crisis worse
The Real Estate Institute of Australia (REIA) kicked off a multi-year campaign this week that aims to start a conversation across the country about removing stamp duty fees from the overall cost of purchasing a home.
The national campaign is called “Axe the Tax”, with the REIA saying it’s “inefficient and unfair” and it “penalises those seeking to move to areas where better employment, educational or lifestyle opportunities exist”. This is a campaign we support.
The amount of stamp duty that needs to be paid differs between states, but overall it makes it harder for every single person who is trying to buy a home. If there are no incentives in place to reduce it (like for some first-home buyers in QLD) it can be an additional cost of tens of thousands of dollars. This can be the difference between someone choosing to buy a home or investment…or not.
We have repeatedly said the solution to the current rental crisis is to increase supply. The REIA estimates that “the removal of stamp duty could increase sales and rental listings by up to 50 per cent within existing housing stock”.
An initiative like this is what Australia needs. It is what Queensland needs and it is certainly what the Sunshine Coast needs. It is crucial we make it easier for investors to invest – for the benefit of everybody! The reality is that many people rely on the rental market as purchasing a home is not a viable option right now for everyone. Due to the low stock, families are having to move away from the region or live in their cars. To retain these families on the Sunshine Coast, investors need to be able to purchase properties. Removing stamp duty is just one hurdle that will make it easier for them to do this.
What we don’t support is the Queensland government adding yet another hurdle for investors at the end of the year by introducing land taxation laws. Essentially, from 2023 the state government will tax Queenslanders on properties they own outside of the state. This is on top of the tax investors will have to pay to the state the property is located in…double dipping by Queensland and an absolute slap in the face. The Real Estate Institute of Queensland (REIQ) slammed the land tax this week, saying “property investors are in for a rude awakening” as “the tax manages to hurt landholders, renters, companies, and small businesses all together”.
Chief executive officer Antonia Mercorella was quoted as saying “I would have thought that the Queensland economy would benefit from attracting businesses to operate in our state, bringing skills, innovation, and jobs for our growing population.”
Now, what is great is that we have two industry bodies making media this week, encouraging discussion around important issues. But where to from here? It is one thing to talk about an issue…but we need action to create change.
This is why we have created the Homes for Everyone initiative. We are building numbers and support so we can approach the local, state and federal governments and say, for example, “If we penalise investors the rental crisis will only worsen and here are the people who agree with us”.
Here at Direct Collective, we are extremely passionate about supporting everyone. We work with first home buyers, renters, investment property owners, developers and hotels to collectively promote opportunities synergies and efficiencies. Everything we recommend is to better the whole community and investors play a key role in making that happen.
These changes will see more supply in the market, relieving pressure across the board. Importantly it will support more incentives for residential property investors so they can provide more rental properties, which will help ease the crisis and stem the rise of first-time homelessness.
You can support these initiatives and more and be part of the change – https://www.homesforeveryone.com.au/