Taxes take 30% of south-west Sydney land and house packages: Monarch

Taxes take 30% of south-west Sydney land and house packages: Monarch
Taxes take 30% of south-west Sydney land and house packages: Monarch

High taxes are taking a toll on new house and land packages built in Sydney’s South West, with taxes comprising about 30% of the cost to produce them, according to research by developer The Monarch Investments Group (Monarch). 

Taxes for an average sized house and land package include GST of $65,909, stamp duty of $26,813 and council and state contributions $30,500, Monarch said in a media release.

Monarch chief executive Peter Icklow said the government should look at various measures to improve housing affordability for the younger generation. 

These include reducing the GST on new houses, perhaps placing that shortfall of revenue on all houses and lowering stamp duty as well as reducing infrastructure levies, he said. 

"Ten years ago in Macquarie Links Estate a house and land package on a 800 square metres lot was $700,000, today it is over $1.1 million for the same size home,” Icklow said.

"The tax percentages have remained the same however, with the increase in land and house prices the amount the government is pocketing is vastly different.

"They are billions of dollars richer from the capital growth in property and land.

"Since 1955, we have developed over 6,000 land lots in our masterplanned communities, with over 50 per cent located in South Western Sydney. The biggest change we have witnessed is the shrinking land lots."

Ten years ago the average sized lot in Macquarie Links was 800 square metres, whereas now Monarch is building triplexes on 180 square metres at The Meadows. 

“Land is simply too expensive. We are building smaller lots to meet purchaser demand,” he added.

“The first home buyer market is alive and well in the South West. In recent years, we have witnessed first home buyer city dwellers renting apartments now moving into the suburbs. They are after space to raise children and good infrastructure and facilities. The South West is providing this with billions of dollars being spent in the region from both the private and public sector,” Icklow continued.

He said first home buyers have bought more than 90% in The Meadows in Bardia while at the finished Ingleburn Gardens Estate, their proportion was 80%. 

“We are finding that downsizers from inner city locations that have built up good equity are also now starting to move out. Many people are selling homes worth around one to two million, purchasing a new home in the South West for around $700,000 and then using the excess for holidays or hobbies.”

The Meadows will have 210 houses and more than 30% is already sold. It is located directly beside Monarch’s Ingleburn Gardens Estate and across the road from the company’s first flagship development in the area, Macquarie Links Estate.

The development will have a swimming pool, playground and recreational facilities. 

Prices start from $669,950 to $789,950 (average $709,950) for a three bed duplex and range in lot size from 230 square metres to 300 square metres. 

 

Tags: 
House And Land Property Tax

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