iBuyNew's Mark Mendel says more needed to be done on affordability by governments

iBuyNew's Mark Mendel says more needed to be done on affordability by governments
iBuyNew's Mark Mendel says more needed to be done on affordability by governments

The NSW government should hit foreigners buying property in the state with a 3 percent surcharge rather than 1.5 percent if it is serious about improving housing affordability, according to a leading online property agency.

The iBuyNew CEO Mark Mendel said the surcharge on foreign investors that has been flagged as a possible measure in the June 21 state budget is a “good move” that will help ordinary Australians to buy property.

“Foreigners buying property in Australia should be paying a tax but the 1.5 percent surcharge that has been flagged isn’t high enough,” Mr Mendel said.

“They should be slugged with a 3 percent surcharge instead.  

"By charging foreigners a higher surcharge, this gives the ordinary Australian property buyers a fair go at purchasing their own property.

“A higher surcharge will also allow foreigners to help contribute additionally to communities in the areas where the tax is collected.

“I believe it is a fair proposition for foreign buyers of real estate, who enjoy the benefits of capital growth from the property they purchase, to help contribute to the infrastructure and liveability of the communities they are investing in via this tax proposal.”

Mr Mendel said the Victorian government last year introduced a 3 percent stamp duty charge and a 0.5 percent land tax levy for foreigners.

“There has not been a noticeable impact on foreign demand for Victorian real estate since then and in fact the State Treasurer Tim Pallas has announced the stamp duty surcharge will rise to 7.0 percent and the land tax levy to 1.5 percent,” he said.

“There has continued to be a steady stream of foreign interest in Australian real estate despite these charges which are helping to ensure communities benefit from the best services and infrastructure.”

Tags: 
Stamp Duty Nsw Government

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