Here are some of the latest updates that may affect you if you own an investment property in Queensland.

Interstate Properties and Land Tax

One of the most recent changes may cost thousands extra in land tax and will impact investors owning property in both Queensland and interstate.

Here is a summary of this new land tax:

• From 30^th June 2023, when land tax is calculated in Queensland, the government will use the total value of your Australian land. This includes your taxable land in Queensland and your relevant interstate land.
• The current tax-free threshold is $600,000 for individuals and $350,00 for companies, trustees and absentees
• You’ll only pay tax on the land you own in Queensland
• If you only own land in Queensland, you will not be affected by these changes
• If you own land in Queensland and in another state or territory, you will need to declare your interstate landholding.

For example, if your land in QLD is valued at $600,000 and your interstate land is valued at $400,000; you will pay land tax based on $1,000,000 but at the percentage of your QLD land (in this case 60% of the total land tax based on $1,000,000).  For more details, please go to https://www.qld.gov.au/environment/land/tax/interstate

I recommend strongly you speak to your accountant and financial planner for personal advice and how this could impact your cash flow as well as your financial strategy.

Current Rental Market and Rental Return

Over the past 18 months, house prices have seen incredible growth and rental returns have followed, therefore as an investor, it is important to be getting the maximum rental return in the current market. If your property has been leased for the past 12 months or longer you might find that the current market rent for your property has increased anywhere from $50-$100 per week – this is especially relevant if you are approaching a re-lease or looking for new tenants.

Our advice is to ask your property manager to review your property for a new rent recommendation ensuring they provide you with a full current comparable market analysis as this will give you evidence of the current rental market relevant to your home. This is something our rental team does as standard procedure in all markets to ensure our landlords have the potential to gain their maximum return.

If you would like a no-obligation 3^rd party rental return report for your investment do not hesitate to call our Property Investment Consultant, Amy, on 0435 410 442 or email bdmpinnacle2@harcourts.com.au

Property Valuation Letter for Tax Purpose 

Each year our investors often contact us wanting a one-page investment valuation letter for tax purposes, if you ever require such a letter please don’t hesitate to reach out as we are more than happy to help and at the same time provide you with a general property report to give you an idea on how your investment is performing.

Quick Market Snapshot

Since the peak of the market at the start of this year property prices have corrected on average around 8-12% across Brisbane.  This correction has been seen in some suburbs more than others and some properties more than others.  In June and July, we saw a significant slowdown in market activity with the buyers’ showing a real fear of overpaying but in August and September, we found that number of enquiries have started to increase and we are selling a lot more properties within 2 – 3 weeks. Townhouses and units are still the star performer in this changing market due to affordability and price point.