Wednesday, February 02, 2011

Adelaide voted most livable city! And then there's the property taxes.

We’ve been voted Australia’s most livable city… but when it comes to fair property taxes, we’re at the bottom of the scale.

It comes as no surprise that this was the verdict which arose from a recent poll taken by the Property Council of Australia. After all, Adelaide continues to be one of the most affordable capital cities in which to buy property, yet our Stamp Duty costs rank amongst the highest of all the states. As it is, many find it incredibly hard to break into the property market, and as house prices steadily rise over the coming years will it become virtually impossible?

The state government’s 30 year plan for greater Adelaide maps future growth areas to accommodate our increasing population; So we’ll have the houses, the question is who will be best placed to buy them if there is no adjustment in these taxes?

When interviewed this week on ToopTV Nathan Paine, Executive Director of the Property Council of Australia’s SA Division, indicated the findings are already being discussed with the necessary Ministers and these talks would continue over the coming months.

“From the Property Council’s perspective property taxes are 43% of the State Government’s own State revenue. It’s grown from around $1.5billion to $2.5billion thereabouts in property taxes, much of which is Stamp Duty… If we want to ensure housing affordability into the future, we need to get those taxes down.”

So finally, the ball may be in motion. We’ll wait to see where it ends up.

Meanwhile we’re seeing some more investors coming into the marketplace, spurred on by the recent natural disasters. As often happens, after a tragedy comes pockets of growth. Over the coming 12-24 months our trades will be in high demand, as buildings and infrastructure are re-instated, as will the need for rental properties. Investors have been holding off, now that rates are on hold a little longer and the need for temporary homes is increasing, they’re coming out.

The other good news for investors this week was the Dow Jones closing at its highest point in almost two and a half years! As unemployment figures in the US are also abating somewhat, it appears we may be getting back on track. If these conditions continue we’ll see a positive flow through effect to the All Ords in the next few months.

If you missed this week’s episode of ToopTV with REISA President, Greg Nybo and Nathan Paine’s interview on our city, log on to www.toop.tv.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

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