In the lead up to the WA State Election, a recent Real Estate Institute of Western Australia survey* of WA property seekers found 90 per cent of respondents considered state property taxes to be a barrier to owning or investing in property.
REIWA President Hayden Groves said the survey responses overwhelmingly illustrated that state property taxes, like transfer duty, were a significant burden on home buyers and investors.
You can read the full REIWA report here: http://reiwa.com.au/about-us/news/reiwa-survey-reveals-state-property-taxes-a-significant-hurdle-for-home-owners-and-investors/
Now I've always understood that taxes were usually placed on items for government revenue-raising where a product or service was so desirable that people would buy it regardless of the tax imposed - especially the case for things that are considered bad for us like alcohol and tobacco.
But then increased taxes and charges for the sale of desirable goods sends a message that these things are not encouraged. So why then are there so many high costs imposed on buying a house for your family to live in?
In many cases, the costs involved in the transaction can outstrip the deposit used to get the mortgage for the property. It's quite a sobering thought.
So, is our government (regardless of the party running the show) telling us that we are not supposed to want to own our own home? Or to not sell it to make a change too often?
Surely a future which enables homeownership is one we don't want to see go up in smoke?
Let me know your thoughts on transfer duty and other home buying taxes on our facebook page.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected] or send us a message via our website for a quick response.
Thanks for reading,