Putting Property On Poll

Newcastle Herald

Thursday January 4, 2007

By ALYSSON WATSON Property Editor

HUNTER MPs will be asked to back real estate agent calls for the State Government to drop land tax on residential real estate and give stamp duty relief to over 65s ahead of the March election.

Real Estate Institute Hunter chairman and newly-elected NSW vice-president Wayne Stewart said yesterday that the statewide campaign aimed to make real estate a key election issue.

Dropping residential land tax would lure investors back, alleviating the rental crisis in which rents were rising and vacancy rates falling, and helping over 65s downsize would boost their savings and free up homes for families.

"The property market stopped overnight when the State Government introduced its disastrous vendor tax and broadened land tax [in 2004], and it hasn't recovered," Mr Stewart said.

"Stimulating property investment is the best way for the state to increase its bottom line."

Mr Stewart said investors had traditionally made up 10 to 15 per cent of residential sales, but that figure had fallen to below 1 per cent.

An exodus that started during the boom of 2003-04 picked up with tax changes, and investors went interstate or to the stockmarket.

"What we want to do is see policy in place that encourages, not discourages, investment," Mr Stewart said.

Questionnaires will go to the Hunter's 11 state MPs asking their position on real estate investment, housing affordability and the rental crisis.

"We want to reinforce how important the property market is to employment, the economy and the viability of the state," Mr Stewart said.

Attention will be drawn to the Hunter's large baby-boomer and elderly population, who could be encouraged to downsize through stamp duty relief.

"Many older people are in big homes that they can no longer manage, but don't move because of the huge cost of stamp duty," Mr Stewart said.

"Encouraging them to move into smaller properties, like villas, town houses or apartments, frees up some of their savings for superannuation and frees up big homes for families."

© 2007 Newcastle Herald

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