Given the current state of the property market, there is a call for change. Also, stamp duty has been tweaked on many occasions in recent years, making it an option that is likely to be considered. As you would expect with many issues in the property market, your opinion on the matter is shaped by your position concerning the proposed change.

If you are looking to buy property, it is easy to see why the change is of interest. Moving the stamp duty payment from the buyer to the vendor gives the buying party one less cost to worry about. Given the cost of buying property these days, a reduction in cost will be welcomed by many buyers.

Vendors have costs to consider too when selling their home

Of course, selling your home is costly too. If you are a vendor, the thought of paying stamp duty on top of the other fees you pay may influence you to take your home off the market. If this leads to a further decrease in the supply of property to the market, it is easy to see it can lead to additional challenges in the market.

There is also the consideration that if buyers are forced to pay the stamp duty, they will find a way to increase the sales price of the property. This act will save them from being responsible for the money and will place the additional cost back on to the property buyer.

However, as the mortgage can now absorb the cost, some buyers may find this acceptable. Stamp duty has to be paid at the time of the property transaction, and it places buyers under pressure. Some buyers may find that spreading the cost of the purchase over the lifetime of their mortgage is preferable. Then again, there will be some buyers who are already stretched to their limit concerning the mortgage, and an additional payment may be too much for them.

Each buyer and vendor is affected by stamp duty changes

A significant issue with any change to stamp duty, or any factor in the property market is it affects people in different ways. There is no universal solution that pleases everyone, and if some individuals are happy, then others will be unhappy. However, this is very much like the property market and the relationship between buyers and vendors.

If you are planning on moving soon, you don’t need to worry about the proposed changes. There is nothing to suggest this proposal will come to fruition, and if it does, there is no guarantee the change will come soon.

However, if you are thinking longer-term, it is something to bear in mind. Depending on your timeline, if you buy before a change comes, you’ll pay the stamp duty when you buy, and then if the proposal is introduced, you’ll likely pay again when selling your home.

If you are looking for guidance in the property market, and you want to be fully informed, contact Austin Property Services. We are pleased to say we offer a property service, so book a valuation today.