Sluggish price growth has seen Melbourne labelled as one of Australia’s most affordable states, but this hasn’t translated into increased investor activity.
The reasons are clear. Independent research commissioned by the Real Estate Institute of Victoria (REIV) showed 81% of one thousand surveyed Victorians agreed that the government’s tax policies have discouraged property investors.
The REIV are actively advocating for tax reform to invite increased investment in the Victorian property market. In surveying rental providers, 58% said they would increase their investment if incentives were introduced, and 44% said they would respond positively to a freeze on property taxes. And 56% of rental providers said they would consider selling or shifting to interstate investments if Victoria’s current tax policies and regulatory settings do not change.
With negative investment and renters struggling to find accommodation, we hope the Victorian government listens.
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By Wendy Chamberlain
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