You may have already received or about to receive your 2019 Land Tax assessment.
The 2019 Land Tax is based on the recent 2018 council site value assessment.
We have typically seen land tax increase by about 40% across the board, and in some instances, by as much as 70%–80%. Hopefully you have not been affected to that extent.
As a result of the latest assessments, many of our clients may receive a much lower yield or a negative return on their investments and may need to think about selling, developing or searching for more profitable investments.
There has been an unwillingness from owners to sell, for fear of missing out on great gains in years to come or limited options for alternative investments - but forward planning is critical here.
While we are experiencing a period of limited supply and firm demand, we could possibly see a shift in the next few years with an oversupply of sellers and higher interest rates.
Many owners have been locked into long term lease arrangements, which can be detrimental to the capital value should they choose to sell down the track.
For this reason, it’s important that you speak to us should you think about selling in the medium term, so we can ensure that the Leases have been correctly structured and capital expenditure considered, in order to secure you the best possible price at sale.
I would be very pleased to chat further with you about this if you feel the need. Click here to contact me or call 0417 055 588.
Written by Aldo Galante
For over 30 years, Aldo has been at the forefront of Australia’s fast-evolving property industry. He served as President of the prestigious Australian Property Institute (Vic), providing determinations on rent-reviews and valuations