The state government’s planned property tax increases risk wiping the state off the global investment map, warns Chris Mountford,
executive director of Property Council Queensland.Kevin Farmer
THE state government’s planned property tax increases, due to come into effect on July 1, risk wiping the state off the global investment map.
As the government begins work on the State Budget, the Property Council is ramping up efforts to highlight the hidden effects of the tax hikes.
These tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact on every Queenslander.
With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time.
Election campaign costings, released in the days prior to the November 2017 state election, revealed the government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.
Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from July 1.
The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.
The end result of this decision will be higher business rents, higher costs for new homes and damage to Queensland’s reputation as an investment destination.
Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.
New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.
We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.
The Property Council is calling for the government to abandon the tax increases and commit to review and modernise Queensland’s property tax framework.
Our current land tax thresholds haven’t been changed in a decade, leading to significant bracket creep as property values have increased dramatically.
We need a simpler, fairer and more attractive property tax system to unlock investment and create jobs.
An all-encompassing review of Queensland’s outdated thresholds and property tax rates needs to be undertaken to put Queensland back on the investment map.
Chris Mountford is executive director of Property Council Queensland.
These are the top 3 spots to bag a bargain in Brisbane: Ryder
Property analyst Terry Ryder has picked three spots to invest in Brisbane. Picture: Richard Walker.Source:News Corp Australia
WANT to know where to invest in Brisbane that’s both affordable and offers the prospect of price growth? Look no further…
THERE are only three areas in Greater Brisbane that offer affordable real estate with growth potential, according to property analyst Terry Ryder.
The founder of Hotspotting.com.au has identified three precincts where there are plenty of houses well below the median Brisbane house price of around $530,000, close to transport links, shopping and jobs nodes, and with median rental yields in the 5 to 5.5 per cent range.
Here they are:
These suburbs are at the eastern fringe of the Ipswich local government area — the part closest to Brisbane, the motorway and the train line.
They are also close to the Springfield masterplanned community, which has an array of modern facilities, including university campus, hospital and commercial-retail precincts.
“There are numerous big shopping centres and major employment nodes nearby, with the recently announced $5 billion Defence vehicle contract focused on this precinct as a major new jobs creator,” Mr Ryder said.
2. Eagleby-Beenleigh-Woodridge, Logan
Mr Ryder said these older suburbs in Logan had median house prices in the $300,000s and were clustered around the train line and the Pacific Motorway, both of which link central Brisbane to the Gold Coast.
“This is also where there is an impressive shopping offering, including major bulky goods retail, and well-established infrastructure like schools and medical facilities (as well as a surprising number of golf courses).
3. Moreton Bay
The suburbs of Beachmere, Burpengary and Upper Caboolture have experienced double-digit growth in their median house prices in the past year, according to Mr Ryder.
They are all close to major road and rail links, but aren’t as expensive as North Lakes has become.
Even in the Redcliffe Peninsula, where most of the water-focused suburbs are, the median house price is only in the $400,000s.
And the Peninsula now has rail links to central Brisbane, making it an even more appealing prospect.
Bernard Salt says Moreton Bay Region has exciting future ahead
SOCIAL media might have blindsided Bernard Salt with the fallout from his now infamous “smashed avo” article, but numbers have never caught him by surprise.
And he’s not surprised by the trends in the Moreton Bay Region towards a positive economic and social evolution.
The futurist launched the 2018 Moreton Bay Region Business Conference Series at Dolphin Stadium in an optimistic keynote address about our “growing, diverse and aspirational” region.
“Moreton Bay has become a substantial economic force in its own right, with a Gross Regional Product of $17.3 billion,” Bernard told the audience.
“We’ve seen a number of big picture, gutsy projects undertaken to change this region’s future and fortunes – particularly the university precinct and delivery of the Moreton Bay Rail Link (Redcliffe Peninsula Line). These lay the foundations for future prosperity – the university in particular is an essential gamechanger for your economy.
“Moreton Bay must remain flexible to future-proof local job opportunities; contrary to the national trend there has been only modest job growth here in the professional services sector, but I expect the opening of the university in Petrie to correct this.
“Migration and knowledge work underpin job opportunities in Moreton Bay, so expect population growth and multiculturalism to continue to intensify across the region over the next 10-15 years.”
But his rosy forecasts came with a blunt warning about the need to address congestion and housing affordability now.
“Moreton Bay will be home to hundreds of thousands more people in the decades ahead, so you will need more affordable housing and it will need to be a competitive product,” he said. “That means providing access to a diverse range of lifestyle options from high-rise to low-rise housing, McMansions and townhouses.”
Former Australian Prime Minister Julia Gillard is the guest speaker at the next Moreton Bay Region Business Conference Series event on May 25 at the Eatons Hill Hotel. For more information or to buy tickets, visit businessmoretonbayregion.com.au
MORETON BAY BY NUMBERS
Gross Regional Product: $17.3 billion
Current Population: 438,000
Population by 2050: 700,000
Biggest jobs growth: Strathpine, Brendale, Caboolture, Mango Hill and North Lakes
Number of businesses: 25,000, which is the sixth highest for a local government area in Australia
■ The fastest-growing age group during the next 10 years will be 35-39
■ North Lakes is Queensland’s fastest-growing area (2016 ABS census)
■ Top five nationalities are United Kingdom, New Zealand, China, India and Philippines
Sydney Baby Boomers drive real estate boom in Brisbane
A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.
A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.
Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.
PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.
“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.
And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.
“That is because there is such a big price difference between Brisbane and Sydney,” he said.
A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.
Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.
“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.
Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.
Originally published: brisbaneinvestor.com.au
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