The state government of Queensland has abolished stamp duty on houses up to Five hundred thousand dollars in value. This abolishment of stamp duty will benefit the first buyers of home. The Treasurer of Queensland is of the view that the variation and the option of an administrator interest rate cut this week should bring in new life into the state's housing market. The Reserve Bank is likely to introduce the cut to interest rates for seven years soon. The housing market will have a big knock from the increasing interest rates.  This cut in the stamp duty and the new plan will be surely welcomed by the buyers as well as the sellers. It will be needful and will increase the sale of property and the property sector will be benefited an lot. The cut in stamp duty will also be greeted by industry.

The present scheme will make the buyers to come forward to buy a new house for their own. Because of the mortgage stress and the high interest rates and the burden on debts and loans there had been a set back of buying properties. Now because of the intervention of the government by abolishing the stamp duty many potential buyers will surely come forward to buy houses. This will in fact provide an affordability transom. The stamp duty cut will also help the sellers and builders to sell their property. The first house buyers will be the most benefited one. The sellers and builders can also find a good market value for the house property.

However some of them are of the view that due to abolishing of the stamp duty the sellers and the builders may increase the value of the property thus putting a burden on the buyers and the buyers may be put to hardship. If this is the situation buyers may not come forward to buy houses. Hence the economists feel that the state government should come to the rescue of the buyers and see that the value of the property is not much higher than the actual market rate. The interference of the state government will surely help the home buyers from facing any difficulties. Already the repayment of mortgage loan has become a curse to the people in the country. The mortgage stress and the high interest rates has made the people to just watch the daily market and situation instead of coming forward to invest on properties. The current abolishment of the stamp duty will surely be a boon to the buyers and all parts of the people. The federal government should appreciate the state government of Queensland for introducing the cut in stamp duty and the same has to be implemented in other parts of the country too.

Therefore the state government’s indulgence in abolishing the stamp duty has satisfied the public and all sectors will benefit from this. However it will be good if the Reserve Bank and the federal government take steps to reduce the interest rate at least to half a percent to benefit the people who are planning to buy a new house. This will also help the housing market to develop a lot.