No Go Sunshine Coast hits landlords with rates hike
Hotspotting’s inclusion of the Sunshine Coast in its No Go Zones report earlier this year raised eyebrows among some investors and outraged locals. But the introduction of higher rates for investment properties on the Sunshine Coast provides yet another reason to think twice before buying an investment property there.
A report in the Sunshine Coast Daily says the newly-formed Sunshine Coast Regional Council is facing a fiscal crisis and will introduce separate rates categories for homes (principal places of residence) and investment properties. It’s estimated the additional loading could amount to a 20% hike for landlords.
Mayor Bob Abbot is unapologetic about the new system. He says: “Investment properties are businesses for some people and why should they run a business without paying equivalent rates to other businesses?”
There are concerns that the area’s rental shortage will be worsened as landlords pass on the additional expense to tenants.
The Sunshine Coast Daily, however, suggests some investors will choose to sell up rather than absorb the additional expense. Investor Alan Chapman says he will sell his four rental properties when the leases run out in September.
“The attitude of the local authority to affordable homes is just a platitude,” Chapman says. “Property owners already pay enormous amounts to maintain their investments.”
