By Tim McKibbin, REINSW CEO
With stamp duty, capital gains tax and GST, it’s almost impossible to see how any investor could profit from property anymore. Not to mention land tax – the tax paid on any property you own, or jointly own, in NSW that is not your primary place of residence.
The land tax payable on the current Sydney median house price is over $7000 a year. With the market determining the rent and the year-on-year increases in the land value, the landlords’ return on their investment has become increasingly unattractive.
As more landlords lose tenants to increased rent, they are caught in the unenviable position of either selling their property to access its equity or maintaining market rent and absorbing the cost of land tax to avoid their investment sitting empty.