Property Tax in NSW

[hrhpablo]

As the Thread Title indicates, this is NSW specific.

I was reading an article on The Real Estate Institute of NSW website (http://www.reinsw.com.au/dir111/rei/Library.nsf/WebNewsCurrent/2418939D830A96EFCA256FAC0015C746) today entitled "Regulatory: State tax reform - your questions answered".

This article said in part: "...On average NSW residents pay more property taxes than residents in any other state and more than 30 percent of NSW State revenue is typically gathered from property taxation – including stamp and mortgage duty, land tax and vendor transfer duty..."

"...The new land tax system will erode the superannuation and retirement savings of thousands of average citizens. Tenants will see their rents rise as property owners attempt to recoup some of the cost of these taxes.

All people in NSW have a role to play in overturning these unfair tax changes. If you want the State Government to know you are unhappy with the current land tax system there are a number of things you can do..." which, they go on to inform us, include emailing Bob Carr at [email protected] or Andrew Refshauge at [email protected].

There have been whispers that recent changes will be reversed in the upcoming budget, but I for one will be emailing Bob and Andrew about this and I recommend any NSW investors out there email him as well to put more pressure on!

 

[perky29]

I have sent a reply to both. Lets see if I get a reply???

 

[Mry]

What I love is that two years ago, I was talking to a guy who has quite a few rentals and we discussed the housing boom. I predicted that either rents would have to go up and/or prices would have to go down for these "boom" properties after the boom ends because these increased property prices provide a very low return considering how much you pay for them and people caught up in the frenzy were focusing primarily on capital returns with no consideration for cash flow, and when the value stops going up and the cash draining starts to hurt, that will force people into "fire sales". A great time to buy.

It is quite amusing to think that after the boom ended and property values start stablising and people start realising that their property is NOT jumping up in value by 20% a year, the NSW government makes the situation worse with the exit tax and increasing land tax bills. It seems some property investors are avoiding NSW property if they can. I guess Bob Carr is about to find out that politicians who mess with property values don't very last long. Its an issue that more people hold to their heart more than any other.