Property investment may have the potential to provide great returns; however, exorbitant stamp duty costs have become increasingly burdensome for even the most intrepid investor.
Property investors who purchase an average home in Sydney or Melbourne are likely to pay more than $30,000 in stamp duty costs—the equivalent of buying a new SUV.
The governments of NSW and Victoria are currently raking in huge earnings from property taxes, and this is likely to continue into the foreseeable future as property prices are expected to rise in Sydney and Melbourne.
On the other hand, it is worth remembering that in less dynamic capital city property markets, investors are being hit hard by hefty taxes. In Perth, for example, the average property investor has to settle over $17,000 in stamp duty.
Overall, all levels of government rake in more than $45bn annually in property taxes.
Since 2010, annual property tax collections by the government have increased by 42% throughout Australia. In contrast, total GST collections have increased by a mere 17% since 2010.
To ease this large taxation burden, more and more property investors are taking advantage of legitimate tax benefits that flow from investing in property. In fact, just one tax depreciation report for an investment property can generate thousands of dollars in potential tax savings annually.
Tax depreciation benefits associated with owning investment properties can be equivalent to approximately 60% of the annual rental income of an investment property. For the initial cost of a tax depreciation report, clients can enjoy thousands of dollars in tax benefits each year from their investments by legitimately claiming their full depreciation allowances.
Rising Stamp Duty Rates Are Blocking Homeownership In Sydney And Melbourne
Discover More Investment Opportunities Through Newly Built Homes
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out