- May 13, 2014
- 2,304
- 2,581
- AFL Club
- Geelong
I’m still firmly of the belief that the one policy decision the Government has available to them that will have a beneficial impact is a hefty tax on short term rentals. Short term rentals do nothing for the property market but take available housing stock away and pump up returns to investors.
I’ve had countless clients ditch long term rentals in favour of Airbnb & Stayz and generate much better returns. We need to disincentive that and look to get these landlords back into the long term rental market and assist in easing supply shortages.
No government assistance whatsoever for investment properties in the short term markets. No negative gearing, no CGT discounts, all you get is the remaining capital gains after you've paid 100% capital gains tax when you sell.
Landlords in the long term rental market complain about bad tenants trashing their properties, fine, the taxpayer will pay your insurance premiums and if your property is out of action while being repaired due to a bad tenant then you will be paid market rates rent during that period (like defence homes).
As the landlord, your property has to be safe and habitable and lease terms must be at least 12mths any shorter duration can only be at the request of the tenant.
These incentives will only be available to domestic buyers.