At least one Jamaican Realtor is arguing that the Government’s planned reduction in transfer tax and stamp duty next January will do more harm than good to the local real estate market.

According to Lorraine Levy-Finlason, the announcement made during the Government’s budget presentation last month incentivised sellers who wish to benefit from the imminent reduction to hoard properties.

“The Government has to be very mindful of making announcements for things that are to come but are premature,” said Levy-Finlayson, who is the manager of Valerie Levy and Associates Limited and former president of the Realtors Association of Jamaica (RAJ). “Making that announcement in an already tough market has (stagnated) the real estate industry because people who don’t (absolutely) have to sell are not going to sell; they are going to hold off.”

Effective January 1, 2010, the transfer tax will be reduced to four per cent and the stamp duty on certain property transactions that is currently levied at 4.5 per cent will be reduced to three per cent.
Levy-Finlayson made the comments at a luncheon hosted by Jamaica Observer Chairman, Gordon ‘Butch’ Stewart, at the company’s Beechwood Avenue headquarters in Kingston last week.