PIPA panel set to ponder property investments future
An upcoming seminar will dive deep into the problems plaguing the property investment sphere now and in the future.
A notable feature of the panel is Real Estate Institute of Queensland (REIQ) chief executive officer Antonia Mercorella. While invited months prior to the Palaszczuk government’s announcement of its new, controversial land tax law beginning in June of next year, she’ll be on hand to lend her thoughts on the issue.
The legislative change has received widespread backlash from many in the industry, including Ms Mercorella, who labelled it as a “rare beast” tax that was “as unique as illogical”. Further to her criticisms, it is also feared the tax will see a mass exodus of investors from within the Queensland borders, a predicament that is far from ideal given the state’s rental crisis and dire need for additional housing stock.
Property Investment Professionals of Australia (PIPA) chair Nicola McDougall added to Ms Mercorella’s assessment, stating that “the potential impacts from the land tax — which will penalise many investors of Queensland property regardless of where they from next year — are set to profound at a time when there is a critical undersupply of rental properties around the nation”.
“The tax is set to put further upward pressure on rents, not just in Queensland but in other states and territories, as investors offload their properties or are forced to pass on some of the significant additional financial burden on to tenants,” she added.
Ms McDougall further unpacked the impacts of the new law, outlining how the Queensland government’s own example “shows a staggering increase in land tax of 331 per cent, or from $1950 to $8422, for an investor who owns just one property in Queensland and one in Victoria”.
She said that this is “representative of the majority of investors who generally own one or two properties in total”.
“Seemingly, the state government thinks that it is fair and reasonable for such a sharp increase in costs to be implemented at a time when interest rates are soaring and the supply of rental properties is at record lows,” she said.
“Ms Mercorella was at the forefront of industry representation arguing against this absurd cash grab and was also one of the most prominent real estate leaders during the rapidly changing property environment throughout the pandemic.”
She professed her excitement that PIPA has been able to secure Ms Mercorella — especially considering her frantic schedule — to attend the Thursday, 6 October, breakfast event in person, to be held at the W in Melbourne. It will be moderated by UNSW business school academic Lachlan Vidler and will feature Property Investors Council of Australia (PICA) chair Ben Kingsley and PIPA chair Nicola McDougall.