Tax benefits prompt property rush
TWEED real estate agents and developers are bracing themselves for the next big gold rush – Gold Coasters making a cross-border dash to secure homes that could be tens of thousands of dollars cheaper than in Queensland.
But those taking part in the dash over the border might have to be fast, with Tweed Mayor Warren Polglase warning tight Council finances might force a freeze on the development of new housing estates.
“Sometimes you just have to be lucky,” said Consolidated Properties managing director Don O’Rorke, whose company is behind the Casuarina Beach township south of Kingscliff.
Mr O’Rorke yesterday revealed the company is about to release new housing packages in its “town centre” stage which will fall just below the $600,000 ceiling for the stamp duty exemption for off-the-plan purchases of new homes.
The measure, along with a tax exemption for NSW residents aged over 65 who want to downsize to a
newly-built house also valued at less than $600,000, is intended to stimulate the property market and building industry. Both exemptions benefit Mr O’Rorke’s company because they provide a saving of $22,490 in stamp duty on a $600,000 home.
Mr O’Rorke said the “gift of nearly $23,000” was a great marketing tool for his company in selling the new house packages in the long-awaited Casuarina town centre precinct.
He said the houses would be offered on separate titles, although on smaller lots than the usual 600 to 700 square metre blocks so far sold in Casuarina beach.
“It’s also a case of really good marketing for New South Wales over Queensland,” he added.
“Premier Keneally has got one over Anna Bligh (Queensland Premier).
“The Tweed Coast has great natural attributes that would make families want to live there.”
However Cr Polglase put a dampener on the enthusiasm, saying the Government’s decision to push ahead with limits on fees that councils charge developers for infrastructure could force the Council to impose a development moratorium.
With developers’ fees set to be capped at $20,000 for each new block of land, Cr Polglase said the Council would either have to halt development, provide development without sufficient infrastructure or raise rates on existing Tweed residents.
Stamp duty abolished for two years for off-the-plan new homes valued at under $600,000
Property owners over 65 exempt for over-65’s who downsize to a new home.
Tweed faces a development freeze because the council is banned from charging developers more than $20,000 a block for infrastructure.