Budget 2014: Impact on the Property Market
With three major policies detailed in the 2014 Budget set to be put into effect between January 2014 and April 2015, the property market is set to deal with an array of changes. The biggest and arguably most discussed, policy is the increase of the Real Property Gainers Tax (RPGT) from 15% for two years to a whopping 30% for a period of three years. The banning of the Developer Interest Bearing Scheme (DIBS) and Goods & Services Tax (GST) are also set in place. We take a look at both sides of the coin before its looming implementation. Doubling the RPGT At a glance it may seem that the RPGT will hit first-time home buyers the most, but a closer look will reveal that property ‘flippers’ will be the ones who feel the pinch most. Increasing the rate of 15% for two years to 30% for three years effectively removes the convenience of buying and selling properties for a quick profit. Disposals after four years and five years will be increased to 20% and 15% respectively. This increa...