Stop Vilifying Property Investors!
Stop Vilifying Property Investors!
The issue
Stop Vilifying Property Investors! No New Land Tax - No Rental Cap!
Landlords aren't living the high life. Most make less than a 2% return, knowing the real money comes upon selling. Due to Dan Andrews latest outrageous and wholly unfair tax on property investors, that day will be sooner rather than later - that will be bad for property investors and renters alike. If a proposed rental cap becomes reality, it will be a fait accompli.
Being a landlord has become tantamount to being greedy and heartless. Public sentiment thinks if you own one, let alone multiple investment properties, you’re filthy rich. That’s simply untrue. The vast majority of Property investors, the 860,000 Victorians unfairly targeted to pay Victoria’s debt, the rent they get from their tenant is their paycheck. Many are self-funded retirees reliant on their tenant’s rent to buy groceries, pay their mortgage - to simply exist.
Land tax has soared in the past five years, so the massive new tax, set to go into effect 1 January 2024, is egregiously unfair. Like everyone, investors have had multiple mortgage increases, we’ve also had all associated costs, including, but not limited to - utilities, insurance, rates, maintenance, and government initiatives increase.
Last year CPI was 7.4%, this year’s is anticipated to be 7%. Workers, public and private sector alike - Liberal, Labor and Greens, expect annual pay rises based on CPI. Andrews just got a pay rise greater than CPI! What's wrong with a landlord expecting to make money on an investment property? When did doing so become considered an abhorrence? Investing in property has made us cash cows for the Andrews government.
The Andrews government has burdened those who chose to invest in property too dear. Absurdly, one could live in a 20 million home and invest in shares and Stage 3 tax cuts would see them better off. What about those on handsome salaries - like Andrews himself, who earns $523,350 with a list of perks, including a free car, business class travel, and more. Andrews and his cronies live far richer lives than most, giving themselves salary increases - above CPI - while stealing money from our pockets. I'm sad and angry at those who chose to invest in property being regarded en masse as Shylock’s.
The Greens, and now the Victorian Labor party, want a rental freeze &/or cap. That’s impractical. It ignores a myriad of considerations, such as how long has it been since the landlord gave an increase, what was/is CPI, what was/is the current rent in said area, for said type of accommodation? If a cap/freeze is put in place, guaranteed landlords will be understandably compelled to raise rent prior to such a ludicrous idea being implemented, whereas they otherwise likely would not. They'll also more likely regularly raise rents when possible, fearful of what tax Andrews might next unfairly impose.
I’m a landlord who treats my tenants as I’d want if roles reversed. The new land tax will have me lose money unless I raise rent. Few property investors make enough to live on. I can’t live on the income from mine. So why own investment property? I do with the expectation that I’ll profit, and I hope handsomely, when I sell many years from now. What’s wrong with that? Do you not work hard in order to succeed? Do you not expect your investments to increase in value?
If I sell now, as many Property investors are looking to do as the burden of owning a home in Victoria has become too taxing (pun intended) there will be a far greater strain on renters. There will be fewer homes to rent, increasing rents, creating a horrendous lose/lose scenario with a greater lack of supply.
If the Victorian Labor government wants sincerely to help renters, they need to build, or at least manage housing. If government’s the landlord they can freeze rents - have absolute control. Labor doesn’t want to own or manage investment properties - they know real profit is only had upon selling. They want revenue i.e. more tax from the property investors. Labor’s actions show they don't care about renters - Andrews new land tax is posturing as it will with certainty have a flow on effect that doesn’t benefit renters. A rental cap/freeze, as outlined above, will make things worse!
Here’s a Win/Win proposal - Incentivize landlords to keep rents low and/or lower them. This could be done by vetting average rents of said home type, in said post code. If the landlord keeps rent below that amount they’d get a reduction on their land tax. Make it below a certain amount on this formula and even less would be paid to the State Revenue Office. As the SRO values homes, so too could they rents - involve the REIV - an independent body - there are ways!
As Andrews realised his mistake with the playground ban and back flipped during COVID, he must do so on this land tax. He must not bring in a rent cap/freeze. Our Labor Prime Minister is opposed to a rental cap/freeze - so too should Andrews be. Ask Renters if they wouldn’t prefer property investors to have this concession - a concession that would compel landlords to make and/or keep rents lower.
No other state or Territory in Australia is bullying and punishing property investors - End the vilification of Victorian Property investors!
Let Dan Andrews look elsewhere to find money to replenish Victorian coffers depleted by HIS mismanagement, which has caused a debt GREATER than that of TAS, NSW and QLD combined. And Andrews has no plans to stop spending - so who knows what his next punishment to his favourite tax target - Mum & Dad property investors - might be!
The time to Act is NOW!
554
The issue
Stop Vilifying Property Investors! No New Land Tax - No Rental Cap!
Landlords aren't living the high life. Most make less than a 2% return, knowing the real money comes upon selling. Due to Dan Andrews latest outrageous and wholly unfair tax on property investors, that day will be sooner rather than later - that will be bad for property investors and renters alike. If a proposed rental cap becomes reality, it will be a fait accompli.
Being a landlord has become tantamount to being greedy and heartless. Public sentiment thinks if you own one, let alone multiple investment properties, you’re filthy rich. That’s simply untrue. The vast majority of Property investors, the 860,000 Victorians unfairly targeted to pay Victoria’s debt, the rent they get from their tenant is their paycheck. Many are self-funded retirees reliant on their tenant’s rent to buy groceries, pay their mortgage - to simply exist.
Land tax has soared in the past five years, so the massive new tax, set to go into effect 1 January 2024, is egregiously unfair. Like everyone, investors have had multiple mortgage increases, we’ve also had all associated costs, including, but not limited to - utilities, insurance, rates, maintenance, and government initiatives increase.
Last year CPI was 7.4%, this year’s is anticipated to be 7%. Workers, public and private sector alike - Liberal, Labor and Greens, expect annual pay rises based on CPI. Andrews just got a pay rise greater than CPI! What's wrong with a landlord expecting to make money on an investment property? When did doing so become considered an abhorrence? Investing in property has made us cash cows for the Andrews government.
The Andrews government has burdened those who chose to invest in property too dear. Absurdly, one could live in a 20 million home and invest in shares and Stage 3 tax cuts would see them better off. What about those on handsome salaries - like Andrews himself, who earns $523,350 with a list of perks, including a free car, business class travel, and more. Andrews and his cronies live far richer lives than most, giving themselves salary increases - above CPI - while stealing money from our pockets. I'm sad and angry at those who chose to invest in property being regarded en masse as Shylock’s.
The Greens, and now the Victorian Labor party, want a rental freeze &/or cap. That’s impractical. It ignores a myriad of considerations, such as how long has it been since the landlord gave an increase, what was/is CPI, what was/is the current rent in said area, for said type of accommodation? If a cap/freeze is put in place, guaranteed landlords will be understandably compelled to raise rent prior to such a ludicrous idea being implemented, whereas they otherwise likely would not. They'll also more likely regularly raise rents when possible, fearful of what tax Andrews might next unfairly impose.
I’m a landlord who treats my tenants as I’d want if roles reversed. The new land tax will have me lose money unless I raise rent. Few property investors make enough to live on. I can’t live on the income from mine. So why own investment property? I do with the expectation that I’ll profit, and I hope handsomely, when I sell many years from now. What’s wrong with that? Do you not work hard in order to succeed? Do you not expect your investments to increase in value?
If I sell now, as many Property investors are looking to do as the burden of owning a home in Victoria has become too taxing (pun intended) there will be a far greater strain on renters. There will be fewer homes to rent, increasing rents, creating a horrendous lose/lose scenario with a greater lack of supply.
If the Victorian Labor government wants sincerely to help renters, they need to build, or at least manage housing. If government’s the landlord they can freeze rents - have absolute control. Labor doesn’t want to own or manage investment properties - they know real profit is only had upon selling. They want revenue i.e. more tax from the property investors. Labor’s actions show they don't care about renters - Andrews new land tax is posturing as it will with certainty have a flow on effect that doesn’t benefit renters. A rental cap/freeze, as outlined above, will make things worse!
Here’s a Win/Win proposal - Incentivize landlords to keep rents low and/or lower them. This could be done by vetting average rents of said home type, in said post code. If the landlord keeps rent below that amount they’d get a reduction on their land tax. Make it below a certain amount on this formula and even less would be paid to the State Revenue Office. As the SRO values homes, so too could they rents - involve the REIV - an independent body - there are ways!
As Andrews realised his mistake with the playground ban and back flipped during COVID, he must do so on this land tax. He must not bring in a rent cap/freeze. Our Labor Prime Minister is opposed to a rental cap/freeze - so too should Andrews be. Ask Renters if they wouldn’t prefer property investors to have this concession - a concession that would compel landlords to make and/or keep rents lower.
No other state or Territory in Australia is bullying and punishing property investors - End the vilification of Victorian Property investors!
Let Dan Andrews look elsewhere to find money to replenish Victorian coffers depleted by HIS mismanagement, which has caused a debt GREATER than that of TAS, NSW and QLD combined. And Andrews has no plans to stop spending - so who knows what his next punishment to his favourite tax target - Mum & Dad property investors - might be!
The time to Act is NOW!
554
Petition created on 26 May 2023