Home' South Gippsland Sentinel-Times : December 30th 2015 Contents THE SOUTH GIPPSLAND SENTINEL-TIMES, WEDNESDAY, DECEMBER 30, 2015 - PAGE 31
FEW things have as detrimental an impact as stamp
duty on household finances, according to the Housing
Industry Association, the voice of Australia’s residential
This is based on the results contained in the HIA’s Sum-
mer 2015 edition of Stamp Duty Watch publication.
During November 2015, the typical stamp duty bill
nationally rose to $19,045 from $17,653 in June, an in-
crease of 7.9 per cent.
The cost of stamp duty is equivalent to almost four
months’ worth of earnings, with stamp duty causing
mortgage repayments to increase by $1165 per year, or
$34,955 over a 30-year loan term.
“The cost of stamp duty has a significant negative multi-
plier effect causing a downward financial spiral for house-
holds,” explained HIA senior economist, Shane Garrett.
“Apart from the immediate effect of being over $19,000
worse off, stamp duty results in mortgage interest pay-
ments increasing by about $15,900.
“Damage from the tide of stamp duty doesn’t stop there.
Homebuyers have smaller deposits after stamp duty is
paid and must bear larger mortgage debt.
“As a result, significantly higher LMI charges must then
be paid. On a standard home purchase of $527,000,
stamp duty can push the LMI premium up by another
“If that’s not bad enough, a further layer of mortgage
interest is added on top of the LMI premium if it is capi-
“The end result is that the typical stamp duty bill of
$19,045 can snowball up to about $50,000 once LMI and
mortgage interest are factored in.
“This is an unacceptable burden to place on ordinary
“As state governments rely more and more on revenue
from stamp duty, they have been blinded to the obvious
consequences of these costs have on prospective first
“The recent Productivity Commission report also noted
the huge disincentive that stamp duty places on older
households wishing to downsize,” Mr Garrett said.
During November 2015, NT homebuyers continued to
suffer the highest stamp duty bills ($25,600), followed by
Victoria ($24,700) and NSW ($23,600). Queensland con-
tinued to offer the lowest stamp duty bills by a comfort-
able margin ($6300) followed by Tasmania ($9300).
Stamp duty bills are the fourth highest in the ACT
($18,400) with WA in fifth place ($16,300) and SA in sixth
of Stamp Duty
VICTORIAN coastal towns will be bursting at the seams
with tourists over summer and for real estate agents, it’s
always a busy period.
REIV data shows many of our coastal areas are still
among the most attractive places to live, whether it’s per-
manently or as a holiday home location.
In fact January sales often account for a large part of
agents’ annual turnover.
Holiday homes can be a good investment and with re-
search and planning, can open future options.
These can include swapping with other holiday home
owners to vary the destination, relocating or retiring
there in future and even a long-term sea change or tree
Portarlington recorded a significant increase in 2014
summer sales, up by 20 per cent over the same period
Sales in Wonthaggi, a picturesque town, rose by 27 per
Other coastal areas that saw summer sales growth
were Inverloch up 10 per cent and Cowes up nine per
Anglesea on the Surf Coast experienced a six per cent
summer sales growth and Warrnambool, at the end of
the Great Ocean Road, five per cent.
But it’s not only coastal towns benefitting from sum-
Holiday destinations in other parts of the state are also
generating interest from out of town buyers.
Double-digit summer sales growth was recorded in
Ballarat East - home to the replica gold mining town,
Sovereign Hill –up more than 50 per cent over the same
period in 2013.
Moe also saw a significant increase in summer sales in
2014, up 40 per cent over summer 2013 figures.
The town is often a stopover for tourists on their way
to the popular town Walhalla and retreats around Mt
Solid increases were also experienced in Sale (17 per
cent), Kilmore (16 per cent) and Swan Hill (15 per cent).
For those planning to buy a weekender, and rent it
full-time or even part-time, it’s worth checking with lo-
Many regional agents offer property management,
making it easy for time poor city dwellers to handle re-
pairs and renting out the property.
By Enzo Raimondo, CEO REIV
AN ultra-efficient display home at The
Cape in Cape Paterson has set a new bench-
mark in affordable living, costing only $500
a year to run or 15 per cent of the power and
water bills needed to run an average Victo -
The double-story, four-bedroom house –
the first of 220 homes at The Cape, Austra-
lia’s most energy efficient housing develop-
ment – has undergone cost-of-living analysis
by the Alternative Technology Association.
The results show a genuinely bill-busting
home, with good design, efficient appliances
and solar energy making the house 85 per
cent cheaper to run than the average Victo -
These day-to -day savings will wipe off four
years from the average 25-year home loan.
The Cape Paterson display home, built for
$390,000, creates more energy than it uses.
It is rated 8.2 stars for its energy efficiency,
fitted with industry-leading seven-star heat-
ing and cooling systems, employs passive
solar design, LED lighting and solar energy.
The home is designed to operate without
the use of increasingly expensive gas, and
will maintain a comfortable temperature
range in all weather conditions with minimal
heating and cooling required.
The home won the Master Builders Best
Sustainable Home, South East Victoria,
The $100 million Cape development has
been recognised in the design category of the
Premier’s Sustainability Awards in 2012.
“The Cape home provides a glimpse into
the future of sustainable housing in Austra-
lia, and shows how innovative design, hard
work and common sense by builders and de-
velopers can help residents avoid expensive
bills, maximize comfort, and dramatically
reduce carbon emissions in the housing sec-
tor,” Damien Moyse, the Alternative Technol-
ogy Association’s Policy and Research Man-
“We compared the annual running costs
and comfort levels of The Cape sustainable
home against typical existing and new Victo-
“Across all categories the Cape home out-
performs current practice in the building in-
dustry by a wide margin.
“With the Cape home, householders can
pocket up to $2,250 in tax free savings per
annum compared with a typical Victorian
gas/electric home of the same size.
“When all 220 homes are built to this stan-
dard at The Cape, the community has the
potential to pocket $500,000 tax free per an-
num in avoided energy bills.
“If electric vehicles are taken up across the
community into future, these annual savings
could easily rise to $1 million per annum.
“If householders reinvest those savings
into mortgages, these homes save over
$200,000 over a 25-year mortgage, and will
reduce the mortgage by several years.”
Friendly challenge to others
The people behind The Cape are local Bass
Coast builders, Small Giants – the company
responsible for the successful Commons
building in Brunswick, one of the most sus-
tainable residential developments in Austra-
lia – and project director Brendan Condon,
whose vision has been to prove that sustain-
able housing can be affordable.
Mr Condon believes people should have
the option of living in comfortable family
homes that are environmentally-friendly and
cheap to live in, instead of the energy-guz-
zling homes currently on offer in new hous-
“This home is climate safe – protecting our
community from rising energy bills and ris-
ing temperatures,” Mr Condon said.
“Residents can purchase a two to three
bedroom home fully fitted out with all the
sustainable bells and whistles and energy
systems for under $300,000.
“We are also pleased that the home saves
around 14 tonnes of CO2 per annum com-
pared to conventional homes.”
Local builders TS Constructions have
worked with energy efficiency experts and
architects to design and construct the dis-
play first home at The Cape residential com-
“The methods we have used here to achieve
these results are able to be followed by the
large volume builders across Australia, and
we hope our project kick-starts a period of
innovation in Australia’s housing industry,”
Mr Condon continued.
“We have developed a design hub of sus-
tainable builders, designers and trades now
forming around this project in Bass Coast
and all future buyers here will have access to
this expertise in developing super-efficient,
high quality, affordable homes.
“Our project is one of the only places na-
tionally where you can access housing built
to these standards.
“Today we throw out a friendly challenge to
the large developers around Australia to get
on board – if we can do this in Bass Coast it
can be done anywhere. It is undoubtedly the
way of the future.”
For more information on The Cape, see ad-
vert this issue, or to see the display home for
yourself, visit The Cape sales office at 140
Seaward Drive, Cape Paterson. The sales
office is open every day during the holidays
from 12pm to 4pm, or call 0413 265 362 to
organise an appointment.
Analysis by the Alternative Technology Association has found a double-storey, four-bedroom house at The Cape is Australia’s most
sustainable display home.
Australia’s most sustainable
home is at ‘The Cape’
FEEDBACK is sought for a Consumer Prop-
erty Law Review into the conduct of real estate
agents, conveyances and owners’ corporation
The Consumer Property Law Review raises a
number of issues for discussion, including the
licensing and conduct of estate agents and con-
veyancers, addressing poor conduct and those
who should be excluded from holding a licence.
Public submissions are also sought on top-
ics including training and experience require-
ments for estate agents and conveyancers, trust
accounting requirements, the role of property
managers and the conduct of owners’ corpora-
The issues paper ‘Consumer Property Acts
Review Issues Paper No 1: Conduct and insti-
tutional arrangements: estate agents, convey-
ancers and owners corporation managers’ is
the first of three to be released in the next few
This is the first public stage in a wide-ranging
review of consumer property laws, including
the Sale of Land Act 1962, Estate Agents Act
1980, Conveyancers Act 2006 and Owners
Corporations Act 2006.
The subsequent papers will cover issues re-
lating to the management of owners’ corpora-
tions and the sale of land in Victoria.
Submissions will be used to develop an op-
tions paper on potential legislative changes
which is expected to be released in mid-2016.
Submissions on the options paper will help
the state government to decide on the final
suite of reforms.
Submissions are open until March 11.
For more information and to make a sub-
Law review looks over agent conduct
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