Heard about the new changes to Stamp Duty and thought they were a great idea? Unfortunately, not many are considering the effects on house prices. If you’ve missed the update – The Government has announced a housing affordability package that will remove stamp duty for first-home buyers for properties up to $600,000, and offer stamp duty concessions for properties worth between $600,000 and $750,000.
My concerns are pretty simple. Putting the stamp duty savings in buyers’ pockets will mean they will bid more on auction day, pushing house prices even higher. I predict that prices will rise by about 2 to 3 per cent as a result. Meaning a $600,000 property with a 3 per cent rise would add $18,000.
Will that push those still saving for a deposit out of the market? Find out here.