Thousands of empty homes adding to Sydney's housing crisis

Soz but this capitalist way of thinking is long outdated. Your success in being able to keep a second/empty house is causing electoral discomfort to certain people. Taxing you for leaving it empty will give some solace to those renting that you are being punished (not mentioning that you will have already been stung for stamp duty on the way in, land tax during the hold and CGT on the way out).
Haven't you got with the programme? Stay with the pack, don't get too far ahead and embrace the equality model- no matter that you work harder, have more skills or take more risks.
I reckon if I started a change.org petition demanding that unused houses be forcibly made available for use by refugees I could get 100,000 signatures in three days.
The mob has spoken.

 

People who complain about there not being equality should move to China or North Korea.

 

Hmmm, last i checked you couldn't claim losses on an asset that is non income producing. But why get facts get in the way of a good story!

 

I was curious about this too - it mentions the gvt subsidising empty housing... assuming that's just with CGT discount after 12 month holding? Which is the same subsidy on a rented house?

Not sure I get it...

 

Not sure what happens in other places in Australia, but in the ACT you only pay land tax if you actually rent out the property. I have a suspicion that people like my absent neighbour (who lives overseas) just hold onto the property and then claim it as their PPOR for when they decide to sell it and then CGT doesn't apply; sounds a bit like a rort to me.

I'll be interested in hearing what the Govt. intends to do - probably nothing...

 

In regards to affordable housing what would charging empty housing more rates achieve? If you can afford to leave a house vacant then you could probably afford more rates?

 

For some it might be enough of a financial disincentive... but I'd imagine you're probably right re: it'd just be seen as the cost of doing business.

They could use those extra rates to assist in some other area of providing actual supply/rental homes etc. I'd need to see a proper analysis to be convinced.

Otherwise, it's just a cash grab.

 

Hmmm, if i was based overseas for an indefinite period, I "could" rent out my PPR, but then if it exceeds 6 years, then CGT is payable.

Conversely if I leave it un-tenanted, the CGT exemption on my PPR continues forever.... @Terry_w is that correct?

 

Unsw couldn't do a research to save its own life.

They say that x number of homes are vacant (which is Incorrect), but even if we go assuming it's correct, do they know the reason behind it?

And how did they conducted the research, did they have a guy knock on doors and if someone wasn't home that meant house vacant? No understanding that those homes could be for seasonal business people? There could be many reason why a house is vacant.

 

Don't tell me what to do with my money.

If someone wants to buy and let it sit vacant then that is their choice.

If someone wants to buy a house and knock it down and setup a vege patch that is their choice.

 

Following on with that thinking you would have no issues then with a land owner building 28 level apartment blocks alongside your PPOR because there is a housing shortfall

 

No issues from me, actually I would love it (see point 3) however;

1. It wouldn't be possible to build a 28 story apartment block on next to my PPOR (given the block sizes) but I will entertain your question anyway, unless the developer bought multi properties but then it would come down to cost effectiveness as he would be paying a premium for the land sites and taking on huge risk as I cannot recall anything within 5km of my PPOR above 5S so to get to 28S that will be a huge gamble and the dev would likely end up with a very costly lesson.

2. Zoning would need to allowed it which currently it wouldn't given the height restrictions, I am not going to investigate this further.

3. IF zoning allowed it the then I would look at selling my PPOR to another developer or look at a JV or maybe just get the DA approved and sell to a developer. Great I can now upgrade my PPOR and supercharge my investment portfolio. For example say you can get 2 units per floor that would equal that would equal 56 units and even at 100k per unit as a price that would mean my property is now worth 5.6M (11.2M if 4 units per floor) where the median price for Watsonia is 620k (Watsonia Investment Property Market Data) which is over 9x the median price. Good on me, thanks for my instant retirement fund... If you line up a developer to pay 5.6M today I will pay you a commission of 600k.

I can recall countless properties I know of that are not being utilized in my suburb (Watsonia which is nothing flash), I think people are wasting their money or could be doing more with their money but who cares it isn't my life or my money.

My sister is looking at purchasing a property on the weekend (auction) that no one has lived in for 6 years due to a deceased estate and the siblings have worked out their issues.

Don't get upset on things you cannot control and if someone chooses to waste (in your mind) that is their choice.

 

If vacant properties continue to cop heat then I predict the demand for "come and make my house look kind of lived in" jobs on Airtasker would go up, as well as sales in home automation tools to turn lights and taps on and off enough to fly under any utility use studies.

 

I completely agree with a tax on vacant housing. I would go so far as to make it the equivalent of the market rent for the property.

The rights of property owners to make money does not override the right of people to afford a place to live. Vacant properties artificially skew demand and drive up prices for everyone else.

 

It is usually based on water use.

You could just advertise it but not accept any applications I guess

 

I read somewhere that a possible reason are for owners who intend to sell in the next 12 months, hence don't renew tenant leases and keep the IP vacant and clean for swift inspections and sale.

Wonder how they calculate water use if water bills are split across all units in a complex?

 

Ha Ha, not sure what to think?
My outgoing tenants took the dishwasher and all the made to measure blinds....
left an infestation.........
If it was left vacant life would be so much easier...

 

My property, well I will do whatever I like with it thanks, even the communists have moved past this sort of thing ?

Yeah, a discount more like it.

 

Communism.

That is what they call it.

In my, not so long life (in my mind) I have seen communist states move toward freedom, while the once free, free to fish, free to climb a tree, free to ride a bike with no helmet, free to own a holiday house or hell, even an investment, move away from freedoms into a legislated communist direction.

And the pollies don't get it ?

 

Well maybe, but this is measurable by things like electricity, gas and water usage.