Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 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's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Thursday, 4 May 2017

NSW stamp duty receipts rebound to near-record levels

Stamp duties boom

New South Wales stamp duty and land transfer receipts rose to above $9.5 billion over the year to March 2017, according to the Office for State Revenue (OSR). 

The rolling annual number of transactions is down from previous heights, but has recently rebounded with so many apartments being constructed. 

A heady combination of record supply and record high prices is proving to be a truly massive windfall for the state government coffers. 

The spike in November was revised up to notch record monthly receipts of $1.83 billion - there had been a change in purchase duties for non-residents in addition to the $16 billion Ausgrid sale.

The NSW state budget surged into a massive $4.7 billion surplus in 2015-16 on the back of this boom.

This result was well ahead of forecasts and left the state government with net debt of less than zero, putting the state government moved into a cash positive position for the first time ever.  

To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole in the economy that will be left by declining housing construction from 2018 forth.

More taxes

There have been many calls for a land tax to replace stamp duty over time, though there is a risk that this actually increases borrowing power and has other unintended affects. 

The Australian Capital Territory (ACT) is experimenting with replacing stamp duty with a land tax, and has seen the vacancy rate for houses in Canberra drop to just 0.6 per cent, while rents are rising faster than in any other capital city, up by 7.5 per cent in 2016.

While this may be because investors have elected to look elsewhere to avoid the annual land tax payments, but the sample of data to date is too small to draw strong conclusions.