HOME BUYERS COULD GET $7000.00 MORE WHEN BUYING THEIR HOMES, iF THE GOVERNMENT CHANGES.
NB. THIS IS TAKEN STRAIGHT OFF THE INTERNET AND HAS NOT NEEN CHANGED EXCEPT FOR HIGHLIGHTS FROM NERANG REAL ESTATE.
In Queensland, Australia, there’s a State Election looming! The election is to be held on Saturday March 24th, 2012 will elect 89 members of the Legislative Assembly. The two main candidates are Campbell Newman for the Liberal National Party and Anna Bligh for the Labor Party. Labor have been in power since 1989 in Queensland.
Late last year, the Bligh Government introduced changes to the Stamp Duty rate payable by home buyers in Queensland. The rate increase was significant and had an immediate effect on property sales and values, particularly in South-East Queensland. Labor abolished the principal place of residence concessional rate of stamp duty which cost property buyers an extra $7000 to buy a home.
Campbell Newman’s policy is to reintroduce the ‘principal place of residence’ concessional rate of stamp duty and to cut red tape, including the ‘Sustainability Declarations’. It is claimed that ‘Red Tape’ in the Queensland Real Estate Industry is costing tax payers around $7B per annum.
However, the uncertainty of who will lead Queensland for the next three years, coupled with the prospect of a massive Stamp Duty cut in a few weeks is without doubt impacting on consumer sentiment when it comes to purchasing a home!
Most real estate agents are reporting a distinct absence of enquiry from prospective buyers. March and April are historically two of the better months for real estate transactions across Australia, but this month in Queensland will probably show a record low number of transactions as the public wait for the result on March 24th!
Having endured half a dozen State and Federal elections over the past twenty years, it is quite normal for elections to slow the local property economy down in the weeks prior. But this time we have the added bonus of a potential reduction in purchase costs for property buyers, should Campbell Newman win the election. And let’s hope he does!
Labor has been accused of massive waste in Queensland. Their lack of responsibility in not obtaining disaster insurance for the state led to a $7B levy being placed on all Australian tax payers. The scrapped Traveston Dam project was another Labor disaster that cost tax payers $600M. $16 million went missing from Queensland Health, despite the Auditor-General warning months prior of risks from lax financial controls across government. And there was the Health pay debacle that cost $283M. And Gold Coasters saw waste of $1.1B in the Tugun desalination plant.
It is likely there will be a land slide against Labor, with most Queenslanders appearing to be fed up with the lack of direction and disaster after disaster from Labor. Queensland is a state in twice as much debt as New South Wales which has double the population. Despite the largest mining boom in history taking place in Queensland, the state is in massive debt.
South-East Queensland has a huge unemployment problem and the tourism industry is in tatters. No wonder the real estate industry in Queensland is enduring pre-election jitters!