When the iron ore heiress, Angela Bennett put her mansion at Mosman Park for sale, little did she know, that the sale of her residence would create a record in the Australian real estate market. The mansion that was listed with a price stag of a whopping $57.5 million, was bought by Aussie millionaire, Chris Ellision, who is well renowned name in the mining industry. However, what made this sale extremely unique was the staggering $2.95 million spent by Mr. Ellison on stamp duty for the mansion.
Real estate agents and many experts have expressed their concern over the heightened stamp duty costs in Western Australia, which has also become a major contributing factor for the decline real estate sales in the region. The stamp duty price is the isn’t the only thing that’s keeping property buyers away from Western Australia, the rising interest rates for properties is also a major hurdle in boosting property sales in the region. The stamp duty figures can be measured as for a $500,000 property, a buyer has to pay nearly $20,000 in stamp duty, wherein the buyers many a times are forced to take additional loans to complete the transaction.
According to Joe Lenzo ( Exec Director, Property Council of Australia),
“It makes the whole affordability issue hollow because people are having to hand over thousands of dollars in stamp duty. The property industry, while showing some recovery, is still fragile. With interest rates going up, not everything is rosy for the property market.”