Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Wednesday, 6 April 2016

Stamp!

Stamp!

A bit of debate around about the abolition of stamp duty in favour of land taxes, which the states will naturally reject. 

The New South Wales Office of State Revenue reported that in December NSW collected was an astronomical $1,215,028,347.

This represents a gargantuan increase of +$500 million or +70 per cent from December 2014.


Transactions will likely be lower for the calendar year 2016 following APRA's crackdown on investor lending. 

However, you can see from the chart above why the states will stand in direct opposition to any such reform. 

Land taxes do already exist in Australia, of course, as do rates, but the family home is what is being suggested for increasing the scope of the tax.

It's a worthy debate, but personally I don't think it will happen. 

Firstly because a tax which lowers the value of what it is actually taxing may be considered somewhat self-defeating. 

Secondly, because, as noted above, the states are utterly addicted to stamp duty like a drug addict to their substance of choice. 

And thirdly, because higher annual land taxes will be a tough sell to the millions of homeowners who have already paid their stamp duties in good faith (land taxes are levied every year and therefore would be a discouragement to home ownership if levies were to be set too high).

The abolition of stamp duties would have the advantage of making purchase prices cheaper, and could encourage labour force mobility.

However, reforms will face a sharp backlash for the reasons noted above. 

Another interesting one to watch unfold, but not expecting to see any major changes.

The AFR explains here why the land tax won't replace stamps - the revenue shortfall would be vast and in turn the costs to average homeowners far too high to be palatable to the electorate.