Qld Government drops new land tax plan – thankfully
Queensland – we’ve dodged a bullet.
Vigilant investors will be aware that the state government had been entertaining thoughts of bringing in a new land tax that would have had a crippling effect on the rental market.
Needless to say, property analysts (and housing bodies across the state) have been very vocal about what a bad idea this was.
But, amazingly, it was the reluctance of other state governments to come to the party that finally forced them to scrap the plan – with NSW reportedly refusing to share “crucial data” required to implement the policy.
The initiative would have seen the state create a new tax law that allowed the Queensland government to use the total value of the investor’s land holdings, including those interstate, in calculating land tax.
It would have had investors dumping properties by the truckload.
We’re already enduring the tightest vacancy rates ever seen, so the last thing we need is the government undermining investor confidence and forcing more landlords to place their properties on the market.
When we talk about ‘property investors’, there’s a misguided perception that every landlord sits aboard their yacht eating caviar and drinking Dom Perignon.
Often, it’s the ‘Mum and Dad’ investors who
have taken the leap and sunk their life savings into a second property in the hope that it will create an income stream.
But, every interest rate rise and new
government tax directly impacts their ability to pay the extra mortgage and if it gets too hard, they’ll walk away in droves.
As more homes and units disappear from the
rental pool, it becomes even harder for individuals and families to find accommodation.
That’s why the government’s change of heart is
I know people who look on property investing as
being “too complicated” because there’s so much they need to be across.
As an investor myself, I know all you need is a
good team behind you (with the expert knowledge to help you through the buying process and then oversee your property’s management).
That’s what we do all day, every day at The Real Estate People, so if you ever want to discuss your situation and hear the many, many positives of becoming a landlord then please give us a call.