The Queensland real estate market could be due for its biggest shake up yet, especially if reforms proposed by one major industry body are brought into force. The Real Estate Institute of Queensland (REIQ) is not only calling for the abolition of stamp duty, but also for measures to help first-time buyers onto the property ladder.
Stamp duty stifles growth
The REIQ's main reason for abolishing stamp duty is that it believes the tax is hindering growth in the real estate sector,potentially dissuading buyers from securing homes for sale. CEO Antonia Mercorella explained that the state's property industry is currently in recovery mode, which is why every attempt should be made to ensure this is able to continue.
"It's a regressive tax which imposes additional costs on property transactions, thereby discouraging turnover of housing and distorting choices between renting and buying," Ms Mercorella noted.
She argued that stamp duty leads to "reduced investment in the property market", which is something the economy might not be able to cope with at the present time.
Giving first home buyers a helping hand
The REIQ has also suggested that first-time buyers in the state could do with some extra assistance getting their feet onto the property ladder.
One of the biggest barriers to buying real estate in Brisbane is building a deposit, the body noted, which could be solved by giving people access to their superannuation savings. However, it is important to note that these buyers would be required to repay the withdrawn amount within a certain time frame.
Another possibility is reintroducing first home owner grants, which should provide extra assistance to anyone finding it difficult to get onto the ladder.
Better service for property buyers
In a separate release, the REIQ has called for the real estate sector to make professional development compulsory for all practitioners. This will help ensure higher standards are maintained, while giving consumers access to a more well-rounded service.
Ms Mercorella commented: "In today's complex legislative landscape and highly litigious society, it's naive to assume that initial training to obtain a licence or registration will suffice without further ongoing training."
She stressed that real estate practitioners need to take whatever steps are necessary to make sure they prevent the risk of "errors, claims and litigation". To date, professional development hasn't been mandated in the profession, which is something the REIQ hopes to see rectified sometime in the near future.
