As a small property investor who has received limited Capital Gain in NSW in the last 12 months from property I was very concerned to receive my LAND TAX assessment this year especially when I reviewed and compared the RESIDEX assessment for the 12 months up to 30 Dec 2004. Refer Property Investor Magazine - Jan 2005.
John Edwards is the head guy of RESIDEX. I consider him to be a well respected professional in his field. Residex values are based on Land + House values so there should be a reasonable correlation as the land value for a house+land should be at least 60-70% possibly higher, of the total value.
For a unit the land value may drop to 30-40% of the total value. This is my estimate only.
So for a house on land there should be a very good correlation between a Residex value and a LAND TAX OFFICE VALUATION
For EASTWOOD, SYDNEY... RESIDEX claims the 12 month Capital Growth for Land+House was Negative 5.29%. Also a negative growth for a unit in Eastwood. Compare this to the Land Tax Office which Claims a positive 26.5% increase in Land Value for a villa.
For a Gosford Unit, CENTRAL COAST... NSW RESIDEX claims the 12 month Capital Growth for Unit+land was a Positive 1.67% Now what does the Land tax Office Claim. It claims a positive 27.9% increase
This is a joke. I know for a fact there has been a huge over supply of Units put on the Market in GOSFORD over the last 2 years. Rents have generally not moved for 2 years. A + 28% increase in land value in 1 year is a joke. I wish it was true BUT IT’S NOT TRUE. Speak to any agent in GOSFORD and ask them if values have climbed on average 28%.
My place, a very second hand 30 yo Unit has hardly moved in value this year, in fact several owners in GOSFORD have been offering rent free periods just to get a tenant in. This is a fact.
I suggest all owners should bitterly complain to the LAND TAX OFFICE because their values are unjustified. This is JUST Legalised THEFT by the STATE LABOR GOVERNMENT to prop up the Finances. Valuations are not even close to the RESIDEX values. No wonder Bob Carr invests in New Zealand. He’s the Premier yet he doesn’t even invest in his own State.
Unlike MR EGAN I will not be changing my tenant who happens to be on Sickness benefits (for an extended period) a 28% increase in rent to cover my Land Tax Bill. Such an action would be unethical, unlike the actions of the Labor NSW State Government who are not honest in their Land Value assessments.
Very annoyed, Phil
refer - Channel 9 News Report on Sunday 30 Jan 2005
