Land tax to rise as prices plummet

[geoffw]

From the Sydney Morning Herald

Property prices may be falling but official land valuations are defying the trend, sometimes rising by more than 30 per cent.

Investors will be hit with bigger land tax bills just as they watch their nest eggs lose value. Investment property owners in the Mosman and Waverley municipalities are the hardest hit. But even the recently retired state treasurer, Andrew Refshauge, will pay more tax on his holiday retreat at MacMasters Beach. Its official valuation has jumped from $383,000 to $421,000, and will attract a $1647 land tax bill next year, compared with $1532 this year...

 

[Bargain Hunter]

The OSR is getting their rules from the same book as the ATO. They now 'deem' the land value to have increased even when the prices have fallen.

Regards

Andrew

 

[Dazz]

Oh well...I guess the tenants will have to fork out a bit more when we hand them the bill. They write it off as just another business expense - no biggy for them, and certainly no drama for us.

 

[caramellokoala]

I got a notice of valuation for a property in Brisbane dated 13 Dec 05 and the land value has decreased by $20000 form the previous valuation dated 1 Oct 04. $237500 down to 217500.
I suppose this is good and/or bad.

Cheers

CK

 

[Peter 14.7]

The problem is where is the annual share holiding tax?!?

Of course it does not exist.

NSW continues to gouge the easy targets i.e. "fat cat property investors", yet fails to provide enbough public housing for those in need?!?!

NSW will find a rental crisis in 2 years me thinks as the impact of everyone taking thier $ and investing interstate (Me included) sinks home.

Sadly by then, turning it around will be like "turning the Titanic." The "iceburg" of no housing will be seen approaching but the upturn will be slow to react and the damage done and people suffering, before help arrives in the form of new accomodation.

Peter 147

 

[Rolf Latham]

Hiya Pete

That crisis is already partially here.

Vancacy rates are very low, I hear rumours of less than 2 %. That means investors are getting back to a demand deal.

ta

rolf

 

[Peter 14.7]

I dont know Rolf.

Locally a lot to rent signs in my home suburb from observation only.

Peter 147