After a high purchase of investment properties in Australia, this look is set to turnaround. Increases in rates will most likely affect existing investment properties. Banks and lenders have also tightened their wallets in lending to potential investors. Investor confidence is also low with many investors backing out of new purchases. Owner occupiers confidence remain strong.
As many as 35 houseowners face having their homes sold against their will as they continue to fail to pay their council rates.
“If overdue rates have remained unpaid for at least three years council can, by resolution, place the subject land to public auction in order to recover the overdue rates,” a council report said.
Currently, the 35 home owners have an accrued debt of just under half a million, with a further 81 properties owing $1.5M in council rates.
Labor has promised to limit negative gearing to new dwellings in government, but those who own existing investment properties will be protected.
Many has attacked the governments new policy such as Aussie Home Loan boss John Symonds as a “hand grenade”. There are fears that such a destructive policy will smash down house prices, increase interest rates, unemployment rates and as well as make renters and first time buyers worse off.
The plan is yet to come into effect and is in discussion.