Not much good news for those who currently hold GC units, particularly in highrises and on floors no. 4 and up. Today's article in THE AUSTRALIAN believes the recent council rate increases will send investors to greener pastures before long. Skyrocketing taxes and levvies imposed on new residential buildings are also set to take a toll, as the state govts continue to charge builders for contributions to infrastructure on new housing estates. See link to full article here: http://www.theaustralian.news.com.au/story/0,20867,19645976-601,00.html
Yes, local council greed! Prior to the developments, the Council would only get 6/8 lots of rates from the site, now they collect hundreds of rates from each site, but that still isn't enough! I can't work this one out, the Gold Coast are on level 3 restrictions (buckets only), the dam is full (finally) and the cost of water has just increased dramatically as well? Yet, the dam wall has not been raised for the past 15 years. I don't have a problems with the "user pays" system, but then to have restrictions as well. I'd like to know where all the money is going from all the water charges the GCCC receive! The G.C.C.C certainly needs the money to put into local infrastructure (roads, sewerage, water). Lack of forsight and planning by the GCCC over the past 30 years has lead to this, and it is only going to get worse. Infrastructure has not kept up with the increase in population and locals will need deep pockets for the next 10 years in an effort to try to play "catchup". I do beleive that the rates system needs an overhaul as it is extremely unfair. I personally believe that developers should be made to contribute more funds towards local infrastructure. rates should be charged on the size of you land and associated facilities (No.of toilets, garbage collection etc), not on the value of you land. Interested in others comments. BUNDY
But why the higher rates the higher you go? Obviously, buyers pay more for better views when they purchase but there's no further work involved for the council compared to the lower floors, is there? It does seem grossly unfair, basing a rates system purely on land valuation, I agree. And I can imagine the outroar that the hikes are causing, especially to retirees who wouldn't have forseen these increases. Much like the dreaded land tax, rates are one of those costs for which we have very little control over.
Indeed, Retirees are the ones that hurt the most when council valuations are based on UCV land values. Many are being forced to sell PPR which they have lived in for 30-50 years to pay for their incressing costs of holding the properties. Land rich, cash poor. This is occurring in high capital growth areas of the Gold Coast, particularly theachside areas. At least investors can claim thier rates against their tax, PPR have no chance. Very sad. Bundy.
Ugh! And they also keep approving massive developments like the Q1 and Soul buildings, which flood the market with new apartments, and therefore limit capital growth in existing ones!! Keeping an apartment there gets harder and harder to justify... Cheers, Medine
