Property investor exodus blamed on tax and compliance
The property investment community is deserting the sector in droves, a new survey by the Property Investment Professionals of Australia shows.
AUSTRALIA’S property investment community is deserting the sector in droves, a new survey shows.
The Property Investment Professionals of Australia’s 10th Annual Investor Sentiment Survey puts the blame on tax and compliance burdens for driving established investors away.
According to the organisation, the sell-off of investment properties around the nation is continuing unabated and is fuelling fears of an even tighter rental market.
The annual survey found that even more investors sold a property over the year to August than they did last year.
And about 65 per cent of these former rental properties went to homeowners rather than investors.
“This year’s survey found 14.1 per cent of respondents sold at least one investment property in the past year – an increase from 12.1 per cent last year,” PIPA Chair Nicola McDougall said.
“It’s clear that investors have had enough of being the golden gooses to financially fluff up state government bottom lines.
“They also are reacting to the myriad rental reforms and property taxes that now make holding an investment property either unpalatable or unviable for them.
“When asked which reasons contributed to selling one or more of their investment properties over the past year, respondents indicated it was predominantly due to increased general holding and compliance costs such as insurance, minimum housing standards, property management fees, etc. (44.1per cent) followed by increased land tax or government charges (35.4per cent).”
Survey respondents indicated they had sold at least one dwelling in Brisbane (26 per cent – up from 23.3 per cent last year), Melbourne (21.7 per cent down from 24.8 per cent last year) and Sydney (14.9 per cent up from 8.9 per cent last year).
At a State or Territory level, Queensland experienced the most investor sales over the past year.
“The strong market conditions in the Sunshine State over the past year can partly explain its high volume of investor sales,” she said.
“The New South Wales and Victorian Governments have introduced a plethora of anti-investor rental reforms and new property taxes over the same period.”
