In the process of putting data together for tax return, thought I would show some comparison of owning IPs in Qld vs Vic - based roughly on my costs last year for one ip in each state: bcc $2,300 - bayside $1,630; qld land tax $3,000 - vic land tax $950. Both properties are houses with similar land size, and no. of bedrooms, carport / garage, in quiet residential streets and close to public transports, schools, shops - both bought more than 10 years ago. Estimated market value of Vic ip increased by 100%. Estimated market value of Qld ip increased by less than 50%. Figures for thought ...
the qld one may have better upside moving forward in the medium term. Melbourne is going down. Brisbane is flat or steady and may have a boom before Melbourne grows fast again.
Without actual property values the comparison is meaningless, the land tax threshold is $250,00 in Victoria. It’s much more generous in Qld for individuals at $600,000 and a couple can jointly own property to effectively increase this to $1,200,000. Once you own a lot of land in Qld it does start to bite though. If your Brisbane city council rates are $2300 per year for a single property I can’t see how this would exceed the threshold. I have a property with a yearly rates bill of approximately $2400 and the land value would be less than $600,000. If you purchased in another entity, different thresholds May apply but for one IP in Qld, why? Could be wrong but it doesn’t appear to add up.
Ah..Vic had a boom. Brissy hasn't (yet). Factor in the next 5 years and the returns could look different .
Both properties were bought with trust structure - for various reasons which won’t be debated here. Qld charges much higher rates for ip whereas Vic treats everyone the same - whether owner occupied or investment. Qld has no threshold for land tax for trust (introduced a few years ago) like NSW has always been the case. Vic does not discriminate ownership in a trust structure for land tax as long as a declaration is made who the beneficiary is. Both properties were bought at very similar prices and within less than a year time frame. The estimated values for both properties have been supported by a number of sources.
