Powered by MOMENTUM MEDIA
the adviser logo
Borrower

Variation for FHBs ‘unfair’ says franchise boss

by Francesca Krakue4 minute read

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.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“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.”

Advertisement
Advertisement

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.”

[Related: 50% of FHBs bought property to escape ‘revolving rental train’]

Variation for FHBs ‘unfair’ says franchise boss
michaelrussell
TheAdviser logo
michaelrussell

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Anja Pannek CEO PLAN

Anja Pannek named MFAA CEO

The board of the Mortgage & Finance Association of Australia (MFAA) has confirmed that Anja Pannek will be the...

READ MORE
mike felton mfaa ta jdayl5

Aggregator heads reflect on Mike Felton’s legacy

Following on the news that Mike Felton is to retire next month and step down as chief executive of the Mortgage &...

READ MORE
melanie kiely afg ta mzh8zm

AFG non-executive director steps down from board

Australian Finance Group Ltd (AFG) has advised that Melanie Kiely will be stepping down from the AFG board to...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more