Post to Facebook on 3/2/2017 at 10:27 AM
I received a phone call last night from a friend. He was shocked and close to tears. The Land Tax payment as at 31 December 2016 is out. He paid about $3,500 last year, but rises to over $9,500.
Both his investment properties have been revalued and although the land values look great, they become a total disaster for all rates and charges, including land tax, based on the land value.
He admitted that there was no way his rental could cover the jump, and since both he and his wife are not on high income, negative gearing is completely out of the question.
So take heed of what you invest, and don't be a hero to invest in high value properties unless you can afford to wait for capital appreciation when you sell them.
I received a phone call last night from a friend. He was shocked and close to tears. The Land Tax payment as at 31 December 2016 is out. He paid about $3,500 last year, but rises to over $9,500.
Both his investment properties have been revalued and although the land values look great, they become a total disaster for all rates and charges, including land tax, based on the land value.
He admitted that there was no way his rental could cover the jump, and since both he and his wife are not on high income, negative gearing is completely out of the question.
So take heed of what you invest, and don't be a hero to invest in high value properties unless you can afford to wait for capital appreciation when you sell them.
