The managing director of a national mortgage broking franchise has called the nation's inconsistent treatment of first home buyers “unfair”, while applauding Victoria’s recently introduced stamp duty initiative.
Commenting on Victoria’s newly introduced stamp duty concessions for first home buyers, MoneyQuest managing director Michael Russell has called on other state and territory governments to follow suit.
“We just can’t be asking first home buyers to have to pay up to $26,830 and $29,700 in stamp duty when purchasing an established or newly constructed home for $600,000 outside of Victoria,” he said.
“We are one nation where all first home buyers are deserving of an equal opportunity and this sort of variation is simply unfair.”
Victorian Premier Daniel Andrews announced over the weekend that stamp duty has been abolished for first homes purchased up to $600,000 and reduced for homes from $600,000 to $750,000.
Mr Russell welcomed the changes and said they are “good news”, pointing out that at $600,000 it’s a saving of $15,535 and at $700,000 a saving of $12,357.
He highlighted that criticism of first home buyers as having poor savings discipline is both “naïve” and without substance.
“First home buyers are saving - but with Melbourne dwelling prices up 13.8 per cent in the year to February, this represents an increase of around $71,972 in the median dwelling price.
“That means that in the past year alone, first home buyers have had to save an extra $7,197 to be able to pay a 10 per cent deposit on today’s median dwelling price of $610,000. Add stamp duty etc. and it’s been an uphill battle.”