Stamp duty on the rise for Aussie owner-occupiers
It turns out soaring house prices are not the only deterrent to Aussie homebuyers, after industry body HIA revealed that the average stamp duty bill in Australia has risen by 16.4% over the past year.
The finding came out of HIA’s most recent Stamp Duty Watch report which also showed that Aussie owner-occupiers can now expect to pay an average stamp duty bill of $20,725.
“On the owner occupier side, stamp duty drains family coffers of $107 each and every month over a 30-year mortgage term,” said HIA Senior Economist, Shane Garrett.
The 16.4% growth in stamp duty comes despite dwelling prices increasing by just 10.5% during the same period.
Garrett said that the spike in stamp duty is a considerable burden that residents feel throughout the life of their mortgage.
“Shelling out so much in stamp duty drains the household piggy bank of vital funds for their home deposit. Families are then forced to take out larger mortgages and incur heavier mortgage insurance premiums,” he said.
A state-by-state breakdown saw Victoria and New South Wales rank as the most expensive regions, incurring an average stamp duty bill of $30,470 and $25,640 respectively. Meanwhile, prospective homebuyers in Queensland and Tasmania can expect to pay just $7,000 and $9,333 respectively.
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The report also took a look at the hefty stamp duty costs for international investors who now pay almost $100,000 in transaction taxes when buying a standard Sydney apartment.
Garrett believes asking foreign investors to pay quadruple that of a local buyer could prove to be a serious issue for Australian rental markets.
“Foreign investors are a vital component of rental supply in cities like Sydney and Melbourne. With rental market conditions now so tight in Australia’s two biggest cities, should we really be placing more and more barriers in the way of new supply?”