Single-person homes the next big investment strategy

A new taxes is being advocated by The Grattan Initiate - as well as I’m telling you today, you’re not planning to like it!

The actual Grattan Institute, which is an independent believe tank dedicated to developing quality public plan solutions for Australia’s future, is actually proposing a new tax upon property owners.

Targeted at raising $7 billion a year, the home ‘levy’ they are suggesting for will be charged with 0.2%, or $2 per $1,000, on the unimproved value of every house in Australia.

It could be attached to the council charges valuation, and so would essentially be you'll pay on your terrain value.

It’s believed that the once-a-year charge will be around $772 on the median-priced Sydney residence, $560 on the median-priced Victoria home, and much less in some other cities as well as regional places.

You can’t say I didn’t warn you; We said you wouldn’t like this news!

Note that this is by no means the sure factor; it’s not even technically on the table. It's simply been proposed by the Grattan Institute, but they have offered a number of taxes initiatives related to property over time that have by no means come to being.

And on a good note, their particular working document argues how the levy could be used to fund the lowering and final abolition of stamp duties, that they can describe as being “the most unproductive and inequitable state taxes”.

No-one likes the thought of a new house tax. It’s with enough contentration as an trader these days to generate a 20% house deposit, not to mention add extra fees and costs for the equation. However, if this is a measure that gives you an opportunity for stamp duty to become eliminated, i quickly think that’s relocating we can probably get behind?

Over to you: what can you prefer? A little property levy charged on an annual basis? Or is a large upfront expense in the form of stamp duty a simpler way for you to manage your property shelling out budget?

Til next time, content investing!

The fastest-growing household size, according to a new report, is single-person households. Click here to know more about Real Wealth Australia.

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