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  1. #1
    Join Date
    Sep 2008
    Location
    Tauranga
    Posts
    1,465

    Default Empty housing now a target in aussie.

    ‘Criminal sanctions are available for false statements’: ATO tools up for empty house crackdown

    In 2016, 11.2 per cent of private dwellings were unoccupied on Census night, compared with 10.7 per cent five years earlier, totalling 1,089,165 dwellings. In Melbourne and Sydney, the number of empty properties increased by 19 per cent and 15 per cent respectively.

    In November, federal Parliament passed legislation giving the Australian Taxation Office power to fine foreign investors up to $5500 a year if they leave their properties empty, plus up to $52,500 for failing to lodge their forms.
    Meanwhile, the Victorian state government’s vacant residential land tax kicks in from January 1, with owners in 16 council areas facing potential fines equal to 1 per cent of the property’s value.



    https://www.realestate.com.au/news/c...%3Acm%3Asocref

    TOUGH STUFF. Wonder if Twatford will do this here?

  2. #2

    Default

    1% land tax won’t have any effect on land bankers, not when properties are going up in value 15%+ a year.

  3. #3
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    7,622

    Default

    I see both sides of this.

    The right winger in me says it's private property and people should be able to do what they want with it.

    The left winger in me says it's stupid to have a bunch of empty houses (whilst their overseas owners leave them empty) and people living on the streets.

  4. #4

    Default

    all you need to do is put it on air BNB then it isn't empty - it's occupied occasionally

  5. #5
    Join Date
    Sep 2008
    Posts
    7,081

    Default

    with many land banked properties worth more than a million

    would have thought a >$10,000 a year 'land bank tax'

    would focus minds on selling
    have you defeated them?
    your demons

  6. #6
    Join Date
    May 2008
    Posts
    3,010

    Default

    Quote Originally Posted by Davo36 View Post
    The left winger in me says it's stupid to have a bunch of empty houses (whilst their overseas owners leave them empty) and people living on the streets.
    Why don't the street dwellers rent the empty houses?

    It will be good to see how this plays out - it seems the focus is to punish the owner of an empty house rather than to help homeless people.
    Punishing owners, especially 'overseas owners' is a common envy tax strategy.
    Unintended consequences will result.

  7. #7

    Default

    Quote Originally Posted by Bob Kane View Post
    Why don't the street dwellers rent the empty houses?

    It will be good to see how this plays out - it seems the focus is to punish the owner of an empty house rather than to help homeless people.
    Punishing owners, especially 'overseas owners' is a common envy tax strategy.
    Unintended consequences will result.

    Many of the foreign owners don't want the hassle of tenants in their property. The property is simply a place to park cash outside their less stable home country. Many of them aren't interested in the 3-4% yield offered to encourage them to bother with tenants.

  8. #8
    Join Date
    May 2008
    Posts
    3,010

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    Many of the foreign owners don't want the hassle of tenants in their property. The property is simply a place to park cash outside their less stable home country. Many of them aren't interested in the 3-4% yield offered to encourage them to bother with tenants.
    I agree.
    And that's why any attempt to get those houses into the rental pool will fail.
    If some sort of tax is imposed then those owners will simply rent them to themselves (or each other) to dodge the tax.
    So this is an envy tax which doesn't care about homeless people but is using them to gain support for the tax.
    It's what labour/socialists parties do - Jacinda will be watching it closely and seeing if there is any support in NZ for such a move.

  9. #9
    Join Date
    May 2004
    Posts
    2,293

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    all you need to do is put it on air BNB then it isn't empty - it's occupied occasionally
    The article quoted indicates that won't work.

    "If the foreign investor claims the dwelling is rented, but this is through short-term leases of less than 30 days, even if this totals over six months … the foreign owner will still need to pay the vacancy fee as the law requires leases to be of a residential nature of at least 30 days duration."

    Not sure what a 'foreign investor' is over the ditch, but suggest a few folk may be consulting their lawyer on how to become a local investor. Similar to what has been suggested here. Nudge nudge ....

    If my Australian rellies are typical, there is already a booming trade in creative approaches to asset ownership for superannuation purposes.

  10. #10

    Default

    The irony of it is that to avoid the tax penalty and rent it out the owner will have to comply with the healthy homes bill and whatever WOF makes it in.
    Free online Property Investment Course from iFindProperty, a residential investment property agency.


 

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