Despite the fact that property is likely to be the biggest purchase most people will make, the impact of the rise in GST will have little affect on home buyers. That’s because there is usually no GST payable on residential property and since buyers don’t usually pay the agent commission, they are only likely to see a slight increase in legal fees and any specialist reports on the property that they commission.
Sellers will have an added expense with GST payable on agent’s commissions, but looking at the big picture it’s not really a significant amount. Remember too the reduction in personal tax is likely to make many home owners better off.
October 02 2010 06:36 am | Market opinion