The taxation policies direct from the desk of failed Vic treasurer Tim Pallas is killing residential investor property sentiment and the market itself.
With a swelling population and less homes to rent the rental crisis is only going to get worse in Victoria.
In fact Victoria was deemed the most anti property investment state.
See report below from from the Property Professionals Investment Association published by Courier Mail
***************************************************************************************** Property sell-off: Investors bailing on rentals in shock new move
Sophie Foster
Updated 13 Sep 2024, 12:37pm
First published 13 Sep 2024, 7:47pm
Renters are set to take a hit with investors bailing on rentals in areas where costs and red tape are starting to bite, with surprise revelations of what they’re eyeing next.
Property Investment Professionals Australia chair Nicola McDougall said at least 14 per cent of investors in their annual investor sentiment survey – out Friday – had bailed on their rentals in the past year, an even bigger sell-off rate than the year before.
“It’s clear that investors have not only had enough of being the golden gooses to financially fluff up state government bottom lines, but they also are reacting to the myriad rental reforms and property taxes that make holding an investment property either unpalatable or unviable for them,” Ms McDougall said.
The issue is set to impact renters hard because 65 per cent of all rentals sold were snapped up by owner occupiers looking to move in, PIPA found, rather than other investors seeking to keep renting it out – shrinking the rental pool further.
The survey found a massive 42.7 per cent of investors were now seeing tight cashflow, while one in 10 were dipping into savings to cover shortfalls.
Seventy per cent of investors were seeing rises of $10,000 to $60,000 annually in mortgage repayments costs now compared to the pandemic, the survey found.
A third were also facing an 11 to 20 per cent rise in expenses in the past year alone including higher land taxes, compliance and minimum standards improvements, property insurance, and property management fees. One in five (21pc) said their expenses jumped 21 to 41pc and 5 per cent were seeing unsustainable rises of 41 to 60pc.
The biggest selloffs were in Brisbane where one in four investors surveyed let a property go (26 per cent, up 3.3pp), followed by one in five in Melbourne (21.7pc), Sydney 14.9pc, 4 per cent in Adelaide, 4pc in Perth, and 1 per cent each in Darwin and Canberra.
Added to regional data – NSW (10.5pc), Victoria (9.32pc), Qld (7.4pc) – the most investor sales in the past year came out of Queensland 33.4pc, Victoria 31pc, and NSW 25.4pc.
Western Australia was ranked as the most pro-property investment state in the country, followed by Northern Territory, with the most anti-property investment being Victoria followed by Australian Capital Territory.
