Vacant Homes — Aussies Properties Left High and Dry
|November 15, 2013||Posted by Staff under Activism|
This 2013 excerpt of Australia’s The Age, Oct 30, is by Jason Dowling, City Editor.
A study has found more than 64,000 residential properties in Melbourne are rarely used and almost 12,700 appear unoccupied.
The findings are based on an analysis of water use commissioned by Prosper Australia [AKA EarthSharing, one of our affiliates], a group seeking tax changes to improve the efficiency of land use.
Average household water consumption in Melbourne is estimated at 419 litres a day.
The analysis of 1.4 million residential properties found 4.4 per cent were potentially unused or seldom used.
“The annual increase in the capital value of the land under a property can outrun the net rental income,” it said. “An investor may calculate it is profitable to purchase a property exclusively for the potential capital gains.
“A substantial land value tax would blunt capital appreciation and serve as a withholding cost, shifting the incentive to profit from rental income rather than capital gain.”
Karl Fitzgerald, of Prosper Australia, said the results showed there were many properties not being used efficiently for housing.
He said there was a housing “distribution issue”, not a supply issue.
“We are strong believers that stamp duty must be replaced with a land tax,” he said.