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Loan writers based on Australia’s state borders have revealed the challenges that come from dealing with two sets of bureaucracies.
Paul Kavanagh of Mortgage Finance Solutions in Albury-Wodonga said it can be challenging for clients to deal with two sets of regulations and government schemes.
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“Being on the border here we come across issues from both NSW and Victoria,” he told The Adviser.
“For example, first home buyers will get a discount on stamp duty in Victoria, but not in NSW.
“On the other hand, if you build a new home in Victoria you get a $10,000 grant, but will have to pay some stamp duty on your block. In NSW, you will be granted $15,000 with no stamp duty.”
Mr Kavanagh said while the most important thing is for clients to find their preferred location, different states can offer different benefits.
“Depending on their background, their financial situation, whether they’re a senior or a first home buyer, it might mean there is a better scheme for them in one state over the other,” he said.
Julianne Brewer of Provincial Home Loans who works near the border of the ACT and NSW said different state rules could make a big difference for clients who decide to invest.
“With the tax laws as they currently stand, there are special benefits to buying a property in ACT, for example,” she told The Adviser.
“So it’s quite common to get a flurry of investor activity between now until the end of June, because that then gives them more deductions that they can claim against their tax by the end of the financial year.”
Ms Brewer said this balancing act was what made her job so interesting.
“That’s why I’m in the industry, I love the challenge. It’s about gathering the information and the intelligence to then make a reasonable assessment for the client. After all, the broker role is really about information and education,” she said.
