As a result of this land tax,
rents will go up. Just wait and watch. Rents will go up.
Why? Because:
a) property owners will look to offset the skyrocketing costs of owning a rental property amidst increasing compliance costs
mandated by the government. Annual rental safety checks is one example, now add to the mix Land tax; and
b) existing property owners will sell up due to a mix of unaffordability (ie: too expensive to keep the home) and simply being fed up with the need to jump through an increasing number of hoops (I am hearing this more and more).
Fewer rental properties due to owners selling them and getting out, means fewer homes for rent.
Simple supply and demand. Less homes to rent. More demand for any rental homes available. Rental prices increase.
Yet, the bean counters in the government don't seem to be able to get their heads around these simple
fundamentals, continuing to blame interest rates, amongst other things.
So here is my
question...
The entire state of Victoria was impacted by these mandated lockdowns and the
Government's splash of cash to rack up this enormous debt.
Yet, only property investors are on the hook to pay
this COVID Debt Levy. For 10 years. What about share investors? Bitcoin speculators? Anyone investing in other commodities? Why has one single investment choice been singled out? Because that is what has happened here. Those who have chosen to invest their money in real estate are being penalised. Those that chose to invest their money elsewhere are not. Why?
That is the question we need to be asking. And demanding an answer.
At Chamberlain Property Advocates we understand that staying across changes to rules such as land tax can be daunting when considering buying a home.
That's where we come in! We love helping buyers navigate the red tape and clearly plan their purchase.
Are you looking to buy a home but feel overwhelmed at the information you need to digest? Ask about our Home Buyer Service, where we do all of the legwork on your behalf to MAKE IT EASY to
secure your next property.
To book a free 20-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help you.