Move in the right direction

The Real Estate Institute of New South Wales has applauded property initiatives announced in the State Budget including the reduction of land tax from 1.7% to 1.6% and the bringing forward of the abolition of mortgage duty to September 1, 2007.

“The reduction in land tax duty will improve the position of property investors in New South Wales, which in turn, should eventually assist the chronic undersupply of rental properties,” says REINSW President, Cristine Castle.

“We have recently seen NSW property investors putting their money into States with a more favourable tax regime such as Western Australia. Hopefully, now they will return to the Sydney and regional markets. The land tax relief is a small step, but it recognises that disincentives have been driving investors away from property in NSW.”

Mrs Castle says the mortgage duty tax relief is also welcome as it removes another of the burdens that make home ownership so difficult to achieve for oung families. “Using the example of a $2,000 reduction on a mortgage of $500,000, it is a significant saving,” she says.

“These concessions by the New South Wales Government are a clear recognition that a healthy property market for investors, home-owners and tenants is crucial to the well-being of the entire economy.” 

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