Yellow Brick Road Home Loans Executive Chairman Mark Bouris says he believes stamp duty is going to be better “paid up front”, after assessing the NSW government’s new approach to the land tax.
First home buyers in New South Wales will be able to choose between paying the upfront cost of stamp duty or a small, annual property tax payment – as revealed in the state budget on Tuesday.
“It’s pretty good policy in terms of borrowers, particularly first home buyers, who struggle to get the stamp duty,” Mr Bouris told Sky News Australia.
“But what you’ve got to remember is that the stamp duty that we pay upfront, we pay on the purchase price, whereas the other tax … we pay on the unimproved value of the land and we pay it annually,” he said.
Mr Bouris said potentially, as a lender, he would assess the borrower differently because they have “an expense every year” that they had never had before if they chose to pay the land tax instead of the stamp duty.