API Connect
September 2008 issue
Investors who have been featured in API answer questions from readers.
For more Q&As, see this month’s API magazine.
Cover story: Karen and Charlie Coleiro
Published: September 2008
Land tax
Q: I read your stories on people investing in several properties but never see how they deal with the way land tax is assessed as a lump sum of all the properties’ land values combined state by state?
I ask because I have one property in NSW and had the tax double in one year on a small rise in land value. My partners’ parents have two properties (also in NSW) and the tax they’ll have to pay is around $5000 for one year.
It has stopped me from investing in another property in NSW as once over the threshold the tax escalates quickly. How do these investors make it work with several hundred thousand dollars in land value?
A: Land tax isn’t a big issue for us although I would prefer not to pay it (ha ha) but our properties are under different entities and we’ve also purchased interstate. You really need to speak to a specialist who understands land tax in your state to see what options you have. – Karen
For more Q&As with investors, see this month’s API.
