Sydney developer, Mark Bainey, has slammed the NSW Government’s stamp duty surcharge on foreign buyers, claiming it is turning overseas buyers away:
“We offered the rebate to try to encourage more overseas purchasers in our projects, but the 12 per cent total stamp duty levy they must now pay has made them feel as if they are not welcome here… Paying the extra stamp duty has killed the market”…
“If we remove these surcharges we would see more overseas buyers purchasing and its something we should be actively encouraging.”
These surcharges have been implemented by the various state governments in order to limit demand from overseas buyers, thereby improving housing affordability, while also bringing in much needed budget revenue to pay for infrastructure and services. It is excellent policy.
Curiously, Mark Bainey admits that the surcharge has had the desired effect of targeting development toward Australian families, where it is most needed:
As a result of the retreat of investors, Mr Bainey said Capio was undertaking more owner-occupier style townhouse developments…
“Townhouses are very popular at the moment. The target buyers are young families who can’t quite afford a house and downsizers”.
Sounds like an excellent policy outcome, wouldn’t you say?
