Speculators who get into the property market to make a quick buck are sure to feel the pinch after the government unveiled its latest news and measures to curb the property market.
Seller's stamp duty was significantly raised in an attempt to discourage rapid buying and selling of properties for profit, commonly known as 'flipping'.
Up to a whopping 16% of the property price may need to be paid by the seller of the property if they decide to sell within a year, up 13% from last year's paltry 3%. Should the property exchange hands within 2 years a 12% stamp duty will be incurred, an increase of 10%. For a sale to occur within a 3 year period an 8% stamp duty fee will apply, up 7% from last year's 1%. If the property is sold within a four year period a 4% stamp duty, more than any other level previously will be imposed, up from the 0% that used to apply.
Flippers and speculators may be more cautious when they are buying, but will the new measures have the desired effect the government have been searching for since property prices hit an all time spike? That remains to be seen.