The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
OtherStaff WriterTue 13 Jun 17

Do Buyers Really Understand Stamp Duty Changes?

TUD+ MEMBER CONTENT
stamp-duty
SHARE
print
Print

Bracing for a flood of investors departing the market on 1 July - or for a wave of first-home buyers entering it - requires belief in a number of assumptions that simply don’t bear fruit.

When the Victorian Government announced new changes to stamp duty a few months ago, it’s fair to say the property industry sat up and took notice. Marketing plans shifted, developers upped incentives for post-1-July sales while others brought their projects forward.

The media noticed, too. Headline after headline professed the government’s intention to make housing more affordable. It was pretty hard to ignore, right?

You would think so, except for one problem. The majority of purchasers out there just don’t get stamp duty.

We polled around 40 Victorians online, of purchasing age and means, and found that awareness of the new legislation was a key challenge.

One in three respondents were aware of the legislation change in Victoria, while of those who were aware, only 30 per cent felt “fairly confident” in their understanding. When we asked people to summarise the stamp duty change, three in 13 people (who all said they were “fairly aware” of the legislation) were kind of correct and even they didn’t fully get it.

A sample size of 40 people isn’t statistically significant. However, it does suggest that for major change to happen, a bit of education is needed.

Stamp duty has long been a puzzle that most regular buyers fail to piece together fully. As with any tax, it is also confusing. Salta Managing Director Sam Tarascio wrote a great LinkedIn piece breaking down the changes – and it isn’t a simple Sunday afternoon story.

Major change requires major education. Let’s start with educating buyers.

While the stamp duty changes were communicated extensively in traditional media, these outlets aren’t where first-home buyers are getting their information. And they didn’t go into the detail that Sam does in his piece.

As such, the industry cannot assume there is going to be a difference in the market on 30 June compared to 1 July, it is going to take longer than that. This might sound obvious but let’s see some more education and fewer incentives. An educated market is a fair market.

In this new legislative environment, developers have an opportunity to build a meaningful relationship with potential purchasers by helping them understand it.

Don’t give, don’t get.  

 

About The Author

Roxanne Millar, 

General Manager at Bastion Effect, specialises in driving commercial results for major tier one developers via media relations, social media and direct engagement strategies.

   

ResidentialAustraliaFinancePolicyPolicy
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/buyers-really-understand-stamp-duty-changes