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Boost on real estate market since tax cuts took effect
Tuesday, 25 August 2009
There are reports of a spurt in activity in the real estate market since the reduction in taxes earlier this month.
Under the new tax regime, the vendor of a property now pays 5.5% in transfer tax and stamp duty down from 10.25% while the buyer will have to pay 1.5% stamp duty down from 2.75%.
Word from the Realtors Association of Jamaica is that there has been an increase in real estate transactions following the August 1 cut in stamp duty and transfer tax.
Edwin Wint, President of the Association, says most of the new transactions involved residential properties.
"Some owners who might have been deferring their sale have moved it forward given the revision. We don't have any empirical evidence to substantial this, but several leading brokers have indicated that they've seen an (increase) in the number of properties coming on the market since the reduction in the taxes," he said.
Mr. Wint added that it will take another three months before the exact increase in the market can be determined.
Tuesday, 25 August 2009
There are reports of a spurt in activity in the real estate market since the reduction in taxes earlier this month.
Under the new tax regime, the vendor of a property now pays 5.5% in transfer tax and stamp duty down from 10.25% while the buyer will have to pay 1.5% stamp duty down from 2.75%.
Word from the Realtors Association of Jamaica is that there has been an increase in real estate transactions following the August 1 cut in stamp duty and transfer tax.
Edwin Wint, President of the Association, says most of the new transactions involved residential properties.
"Some owners who might have been deferring their sale have moved it forward given the revision. We don't have any empirical evidence to substantial this, but several leading brokers have indicated that they've seen an (increase) in the number of properties coming on the market since the reduction in the taxes," he said.
Mr. Wint added that it will take another three months before the exact increase in the market can be determined.