Further property tax changes, particularly to negative gearing or capital gains tax, risk pushing more investors out of the rental market. With rental supply already tight, any reduction in investor-owned properties could place further upward pressure on rents — with some analysts warning rents could rise by as much as 20% in major capital cities.”
For Melbourne/Victoria, the argument is stronger because investors are already dealing with higher land tax, rental reforms, compliance costs and weaker confidence. ABC reported that Victorian land tax changes have added costs for investors, while Cotality estimated an investment property with a $650,000 land value now carries about $1,300 extra land tax annually.
The 20% figure appears to come from SQM Research’s Louis Christopher, warning that changes to CGT and negative gearing could trigger rent rises of up to 20% if investors leave the market and supply tightens further.
We have seen this before!
