Increased land tax bills, rising costs associated with owning a second property and a post pandemic slump have softened the beachside market’s red-hot house prices, experts say.Holiday-home owners and investors are leaving the Mornington Peninsula in droves in part due to higher land taxes, with property prices coming off the boil in the beachside market.came into effect at the start of the year. The number of listings in the area has increased by 14.4 per cent in the past 12 months.
CoreLogic head of research Eliza Owen said the Mornington Peninsula market had become more stable since the peak of COVID, when prices rose to a record high, with property values now flattening. “If you’re buying a holiday home for $3 million, you’re already contributing about $170,000 in stamp duty straight away and then on top of that, a fairly onerous land tax ... the land tax has been a tipping point, I think, for a lot of people.”
Smith said that regardless of whether second homes were rented out via a short stay accommodation platform like Airbnb or left vacant throughout the year, owners were being hit with taxes many can’t afford.“We are hearing anecdotally of people getting bills for several thousand dollars that they’re not expecting, and it may be for an older home that has been in the family for a long time, and they haven’t had to pay that before,” Toth said.
Second homes are exempt from vacant residential land tax if the property is occupied by the owner as a holiday home for at least four weeks in a calendar year, according to the State Revenue Office website.
Source: Real Estate Daily Report (realestatedailyreport.net)
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: theage - 🏆 8. / 77 Read more »
Source: smh - 🏆 6. / 80 Read more »
Source: brisbanetimes - 🏆 13. / 67 Read more »
Source: abcnews - 🏆 5. / 83 Read more »
Source: abcnews - 🏆 5. / 83 Read more »