Rent rises are taxing issue
JOHN Sercombe says one of the causes for local housing becoming increasingly less affordable goes back to 2004.
Mr Sercombe, the Mid North Coast Director of the Estate Agents Co-Operative said the widely-hated NSW Vendor Sales Tax started an avalanche of problems.
The Salvation Army’s emergency relief case worker for housing, Samantha Stubbs, recently said renters were finding local housing unaffordable with more than 40 families at risk of homelessness on her books on the Coffs Coast, most of them in rental housing.
“The reason that things are so difficult is because back in 2004, the Sydney Labor Government introduced their greedy Vendor Sales Tax,” Mr Sercombe said.
“It made investors (landlords) pay the tax, if they sold their investment property.
“This really got up the nose of thousands of investors who then sold their investment and got out, or didn’t buy their next one, or didn’t become a NSW investor at all.
“The beneficiaries again were Queensland and Western Australia.
“This reduced the number of properties available, consequently, each year it has become worse until you have the present situation.
“One year later, one of a series of new Premiers recalled the tax but by then it had decimated the whole real estate market, not just the investment segment.