Home News Tax hike an added burden for Canberra first home buyers

Tax hike an added burden for Canberra first home buyers

Font size :
It is not easy being a first home buyer these days, but those in Canberra have it harder with a tax hike facing ACT apartment owners. Unit owners will see taxes jump an average of 20 per cent from July next year as part of the ACT government’s five-year tax plan.

According to chief minister Andrew Barr, this could pave the way for “a more even balance in terms of the distribution of the rates burden,” since units and townhouses make up a significant portion of new homes built in the ACT.

However, the tax increase could also spark tightening rents if investors pass on the extra cost to tenants, with first home buyers being the hardest hit.

“Cost certainly plays a part in a lot of investors’ decisions,” said Independent Property Group project marketing director Wayne Harriden. “The unit market, it is where first home buyers buy. At the end of the day, they want to get in the market.”

Still, Derek Whitcombe of Colliers International in Canberra believes that the tax hike would only represent a small increase in dollar terms for most people, such as investors and downsizers.

“I think apartment people have felt fairly blessed in the past in that there’s been a considerable gap between the cost of rates on apartments versus that on free-standing houses and townhouses,” he said. “I don’t think it will have a huge impact on most owners, maybe with the exception of first home buyers.”

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Jul 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords