At what point did you get sick of paying ridiculous amounts on Land Tax?

T

The_Bludger

G'day guys, looking at buying my 3rd IP shortly, but current unimproved site value of my 2 IP's falls in at $800k which means I have to pay $1,975 in land tax each year. If I was to buy just one more property in Vic, let's say site value $350k, I'd be paying more than double that at $4,175. I hate giving the Government handouts for my hard work...

At what point did you say 'bugger this", I'm buying interstate? And has buying interstate worked for you?

Venturing out of Vic to avoid paying extra Land Tax scares me a little as I like to do most repairs myself and know that the agent isn't ripping me off. I also feel as if I can do more due diligence in the suburbs I can actually drive around in and look for myself in person.
 
boomtown said:
Buy a unit on cheap land in Vic?
Click to expand...

G'day Boomtown, thanks for your reply. My long term strategy is to buy houses with land content in semi "blue chip" areas that I or others can then redevelop into units\townhouse, etc later on, lets say in 15 years time. I'm trying to acquire as much land as I can now, as this I think will be the key in making $'s in the years to come. It's a limited resource, so only way is up, so the more you have the better. Not saying it's the best strategy or other strategies don't work, it's just the path I am going down ATM.

Having said that, might be a bit difficult developing interstate, but no doubt others will want to develop it, making it worth more $'s.
 
States traditionally resort to taxing capital. When budgets are tight they raise the levels and find new ways.

Since the Federal Govt introduced CGT as well, its become a real feeding frenzy.

At least you can defer CGT and the liability arises on a gain (not allowing for inflation) whereas the States have their hands in your wallet ALL THE TIME REGARDLESS.

Cheers,

Rob
 
Hello,

We have very recently (like, in the past two days) decided that we have reached the end of our tether with land tax (in NSW).

Our new and improved strategy is to look interstate for our next IP. Luckily, this doesn't daunt us. I do understand the benefits of being local to one's properties, but I can still sleep at night if we don't live in the area.

One of our IPs, for example, we have never even seen in person. It was a good buy on paper, and it checked out nicely by the pest-and-building inspector, so we went for it. The agent who we bought it from keeps an eye on it for us, and rings us if the lawn needs mowing (or whatever).

So . . . I think it can be done. And if you want to go and visit, at least there's a tax deduction in it!

We are also considering buying some more NSW properties, but this time in our own names.

Cheers,

Harriet
 
Harriet said:
Hello,

We have very recently (like, in the past two days) decided that we have reached the end of our tether with land tax (in NSW).

Our new and improved strategy is to look interstate for our next IP. Luckily, this doesn't daunt us. I do understand the benefits of being local to one's properties, but I can still sleep at night if we don't live in the area.

One of our IPs, for example, we have never even seen in person. It was a good buy on paper, and it checked out nicely by the pest-and-building inspector, so we went for it. The agent who we bought it from keeps an eye on it for us, and rings us if the lawn needs mowing (or whatever).

So . . . I think it can be done. And if you want to go and visit, at least there's a tax deduction in it!

We are also considering buying some more NSW properties, but this time in our own names.

Cheers,

Harriet
Click to expand...

Who Knows Harriet, you may one day wake up and join us Mexicans and decide to live South of the border. :D
 
The_Bludger said:
Venturing out of Vic to avoid paying extra Land Tax scares me a little as I like to do most repairs myself and know that the agent isn't ripping me off. I also feel as if I can do more due diligence in the suburbs I can actually drive around in and look for myself in person.
Click to expand...

Time to step out of the "comfort zone" by the sound of it. There are many of us that have had very positive experiences with PMs, you just need to do the due dilligence and find a good one. Certainly seems preferable to giving the government more of your hard earned on a regular basis.
 
Land Tax is no more than a wealth tax. It has no place in a modern capitalist society and only stifles economic activity.
 
Just what is the land tax used for and who had this great idea to tax us in such a way?

It really makes me want to buy shares. :mad:

Time to start looking for property in a different state.
 
At what point did you get sick of paying ridiculous amounts on Land Tax?
Click to expand...

I believe I can trace it back to the 26th of May 2004. That was the last time we ever bought a residential property.

Every property we have purchased since, the Tenant has kindly paid the Land Tax impost for us. :)

Not all "property" is the same.
 
Harriet said:
By increasing the rent. At least I think that's what the poster meant?
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Read (re-read) TPFKAD's post carefully. He mentions that he has ceased purchasing resi IP's.

The tenants that he now alludes to are commercial leases that obligate them to pay the land tax on the properties they run their businesses from.
 
TODAY!

got a bloody $10k OSR bill...

Cost of doing business though, and calculated into the holding costs, just dont like seeing it come in... :(
 
TPFKAD said:
I believe I can trace it back to the 26th of May 2004. That was the last time we ever bought a residential property.

Every property we have purchased since, the Tenant has kindly paid the Land Tax impost for us. :)

Not all "property" is the same.
Click to expand...

Dazz is that you???
 
It really hit me when I learnt that the annual rent from one of our properties pays our land tax each year. :eek:

Luckily being a landlord I'm rich and can afford it. :rolleyes:

Andrew
 
If you've got an expectation around CG factored into your decision to purchase, you should be factoring in the related impact on land taxes and any other fees based on capital value?

No?
 
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