Having said that, I don’t have a lot of sympathy for people who bought dog-boxes in the CBD and surrounds for the sole purpose of exploiting people.
They’re not the norm, though.
How many properties do you own in Victoria? We are not as wealthy as you, but I reckon Land Tax is the least of our problem with owning investment properties. Insurance, Body Corporate fees, repairs, defaulting tenants are all part of the joys of being an investor and Landlord. And the social issue of charging a fair rent versus “market” rate is a challenge.
We have just purchased a unit in Palm Cove both for our use and as a holiday rental. I was amazed at how high Body Corp fees are in Qld and Insurance costs are through the roof. Nice place looking on to the beach but not a high yield investment.
In our looking at Gold Coast property we found prices on homes and units to be reasonable compared to any place south. There is a huge range to choose from, and while 3 bedroom palaces in a coastal high rise are in the many millions, nice, large and modern places are much cheaper than Melbourne.
I will be pushing the EFC Board to forget about playing at the G, and moving home Games to Cairns in June, July and August.
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The land tax isn’t the biggest worry, but it is the newest and least necessary and stupidest worry.
A blatant tax-grab on people that are in severe stress already.
Timing couldn’t be worse.
Zero justification for it.
Kinda…kinda gutless.
Of Zero benefit holistically.
So…why did that happen?
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Rents have increased significantly here in Sydney. Maybe not double but the jump has been noticable.
Definitely not double.
Goddamn, if rent had doubled in four years for me then you wouldn’t hear a Farking peep out of me.
People who own multiple properties are in severe stress ?
Tell that to a first home buyer in the sticks with a huge mortgage.
If you own an investment property or even a holiday home and you are in severe stress, then I would recommend selling it.
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I’m not going to discuss it with you if you’re going to be deliberately stupid.
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Uhhhh….wut?
How is that being stupid ?
You don’t pay land tax on your primary residence, so if you have a land tax bill, then it is on a second or more property. If you are under “severe” stress and I assume you mean financial, then sell it, or find a better Accountant who can restructure your assets to eliminate tax.
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Okay.
So you know stamp duty is a thing.
You know property prices have dipped.
You know advertising costs and agent commission is a thing.
And your advice is…sell it.
Really.
Cop the high tens loss. Is your advice.
Leaving aside (which apparently we are) that the New Victorian land tax is Not targetted. It’s not going after people (or businesses) that are doing this for profit and are probably writing off a shedload of bullshit.
The land tax isn’t the worst of it right now, no.
But by gosh, it’s stupid.
Edit: but please consider the first home buyers who paid no stamp duty, living in the sticks where prices are actually reasonable because…what?
What was your point here?
Isn’t that the point?
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Investments go bad.
I mean leverage is a double edged sword.
Buy shares with money you have, but when you play with leveraged investments when debt is well near 0 your playing with fire. Especially accepting ■■■■■■ returns.
Its insanity we have a system which had meant homes out perform equities in Australia.
Its gonna be one long road out of this one.
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You are the one talking about “severe stress”, which to me means you are going backwards and will default on a mortgage. Then when the Bank takes over you get well and truly farked.
My advice is actually to see an Accountant who can structure your huge property portfolio so you grow it.
Most taxes in Australia are stupid and Governments and ATO only go after the easy victim. Land tax is insignificant compared to stamp duty and even GST on most things.
The wider issue is that the tax system is not fair to most of us. Government needs money, hence taxes, but not everyone pays tax and some people like Twiggy, Gina and other miners pay not much if anything.
I would certainly hope it’s not All of the point.
I mean sure, some people/entities probably need a bit of a check, but crippling anyone shouldn’t really be the goal.
And as Bacchus knows very well, people like him can ride things a lot easier than the majority of plebs that unfortunately get caught up along the way.
Yeah.
Don’t do that.
Don’t assume my position.
Dude.
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Land tax is a substantially better stick/carrot to encourage property transactions than stamp duty.
And if it discourages land banking why is that a bad thing?
Otherwise its a cost of holding the investment. Like interest payments(if borrowing), maintenance etc.
And those costs are offset by risking for a capital gain and the income generated from the dwelling?
Theres more things to invest in other than victorian property. And if your not constructing new stuff how is it helpful anyhow? Its not providing more roofs for people to live under.
Yet RBA say interest rates won’t go down until people start losing their jobs.
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I ask that my renter, whoever they may be, pays something less than half of the cost of the cost of living crisis.
I think that’s reasonable.
I also find it risible that crisis for most landlords, which is people that have One investment property, not twenty, is a boon for renters.
It’s just…so not. Some will take Bacchus’ advice and sell and it won’t be to that renter.
That renter is getting kicked out.
And yay! They get to pay removalists costs as well!
Win-win!
The owner And the renter gets screwed.
But none of that has anything to do with the Victorian Government looking over the expanse of opportunities and saying, ‘Here’s somewhere that needs some fat cut.’
The RBA is concerned with lowering inflation. That means spending more on things like rent and mortgages and less on other things .
The problem is the inflation in other things - there is a lot of market power and wont drop their rates.
Insurers, energy prices, supermarkets, transport(criminal the government didn’t give those flight slots to Qatar or another airline).
Where its hurting is busienss where there is no market power(small business).
And yeah as the biggest employers in Australia that will see job losses.
The muppets in large companies dont lose their jobs - unless rank and file when automated or outsourced or even better made self serve(the customer does it)