Canberra apartment owners set for 7 per cent rates rise from July 1

Canberra apartment owners set for rates rise from July 1

I think next on the agenda is land tax rises. Raising the 'Barr' on housing affordability.

 

I'd love to invest in Canberra, but I can't make the numbers work while stamp duty is still relatively high yet rates keep going up. I can't see how anyone in the last few years could make a neutral/positively geared IP!

 

7% is actually fairly low for Mr Barr

If you offered me 7% p.a compounding for the next 10 years i would probably take it, sadly enough

 

Seems a bit mean considering that unit values are falling. One of my colleagues has an apartment in Bruce and is stuck in a rut with rents and prices going down while they keep approving more massive buildings to further increase supply

 

supply = more big $$$ for the govt. i certainly disagree with the monsters they are approving, but why wouldnt they, everyone says supply is the issue, why not be seen to alleviating it and make a motza...(admittedly its usually land supply (for houses) people whine about)

 

It "helps" that property developer "donations" in Canberra are much less controlled than elsewhere.

 

Rates up, stamp duty down, no big revenue shocks: Tuesday's ACT budget

Hey great, there will be no more revenue shocks from the Chief M̶i̶n̶i̶s̶t̶e̶r̶ Robber.

But he's already raising rates on every property owner in the ACT and apartment owners are gonna be slugged with even higher rates as property investors see a big increase to land taxes.

FFS get off this absolute BS about housing affordability!

 

I am in the same position, land tax was $119 per year, rent was $340 a week on a $275,000 apartment. Fast forward 4 years, rent is $290, land tax is $1119 and rising and can't sell for original purchase price. Greedy ACT government!

 

Yep that's exactly where I will be at. I'm only in this position because I had to move out of my home unit due to a member of my household experiencing problems with a neighbour. So I'm renting myself while I am about to rent out the unit. I know people pay high rates and taxes elsewhere but these increases have been fat and fast. The guy is a grub.

 

Another reason to give units a miss in the ACT :-(

Stick to the detached houses.

Cheers

Jamie

 

I'm so deeply negatively geared the federal budget will sink.

 

So you are the one...

 

Well the Chief Grub certainly delivered on his budget promise to crush lower-income workers and struggling families in Canberra.

ACT budget 2017: Not so family-friendly as living costs hike
ACT budget 2017: Not so family-friendly as living costs hike

ACT budget 2017: Andrew Barr delivers election promises with $83.4m deficit
Land tax to extend to vacant homes in budget that extends the reach of rates and land tax

 

What actually this rate hike means? I see rate hike is varied acc to the suburbs. The only relation I can think of this is related to the unimproved value of land. Shouldn't be investors celebrating if actually UCV value is increased? Just trying to understand this.
Bought IP last month in inner south if 10% increased in the UCV, I literrraly made more than 50k in just few months.

 

Hey mate, to the best of my understanding and based on what they have done in the past, they are going to fiddle with the land tax calculation and not the UCV. The fixed charge will be increased and/or marginal rates will be altered. They have already said the method of calculations is going to change for apartments, the marginal rate is going to calculated on the whole UCV of the block then apportioned, where as at the moment it is apportioned then marginal rate applied (or something along those lines)

 

Thanks, But I am talking about the houses. Why they charge rates differently depending on the location? It is always fixed residential rates calculation The relation I can see is only UCV of land and suburb.

Rates calculation for 2016-17 - ACT Revenue Office

Cheers

 

Ahh I think I see what your getting at. So in short location is important, as this defines the UCV. UCV for 1000sqm block in Red hill will be significantly higher than same block in Bonython. There for the marginal rate (or rating factor I think its called now) applied to both homes will be different. Red Hill block would be in the top bracket, Bonython probably in 2nd or 3rd. So overall to increase rates or land tax what they can do is increase the Fixed Charge which is currently $765 for rates and $1090 for land tax and/or increase the rating factor percentages.

 

But what I think is that they have actually upped the UCV values of land so automatically rates and land taxes are increased. Can someone confirm this?

Canberra household rates are going up again in 2017-18

 

Guess we may have to wait and see when we get our assessment notices next month. Not saying the cant or won't just jack up UCVs, but since this process started haven't seem them take this route. Remember the AUV is the average of the UCVs for the past three years. So a significant jump would required (could leave them open to people disputing their new values) in the final year (i.e. 2017-18) to move your overall AUV.
Side note marginal rate charge for AUV of 300k in 2012-13 was $805 in 2016-17 it is $997.

 

ACT budget analysis: How charges, taxes and more will affect the property sector
How the ACT budget will affect the property sector, according to the experts

“We are also disappointed that a move to tax owners of units $480 more a year if they are rented out, and runs counter to the government’s objectives to get more affordable rental product in the market.”

So now we're finally seeing some people wake up to the disaster this government is creating in the ACT. Have a read of the increases to development taxes!

ACT developers blast new $30,000-a-unit tax to convert residential blocks to townhouses and units
Unit development on suburban blocks 'will come to a screaming halt'

Oh what was that about housing affordability in Canberra?

Canberra rental prices continue to rise in autumn, Domain Group report shows
Rental costs 'the stuff of nightmares' as prices climb towards Sydney levels

"Combined with a tight rental vacancy rate of 1.2 per cent “it’s the stuff that nightmares are made of for tenants”, according to Domain Group chief economist Andrew Wilson."

Seriously don't understand why there isn't more outrage against this psychopath.