Western Australia Outlook Changing Market Conditions Interest rates are expected to remain unchanged, although some allowance is made for some increases before the end of 2011, of between 0.25 and 0.5 per cent. Based on the sur vey, 54.5 per cent of WA respondents thought they would remain unchanged, and 45.4 per cent thought they could increase. The Governmentâ€™s move to introduce a carbon tax is not, in the main, supported by First National WA members. However, more customers will seek energy efficient features when looking to buy a new home, due to the rising household energy costs and the challenge of maintaining a healthy home budget. Western Australia members are divided on whether they believe stamp duty should be abolished altogether â€“ although if it stays it should be reduced to a more equitable rate and the shor tfall could be covered by a small property tax that all property owners pay. But this amount would have to be minimal compared to the current Stamp Duty. However, replacing Stamp Duty with another form of tax, such as a broad-based land tax or death duties should be completely quashed. Similarly, it was considered that any talk of abolishing negative gearing should cease immediately.
36 First National Real Estate 2011 Property Market Outlook