RATES WHACK FOR INVESTORS

IN response to the proposed

Cairns Regional Council additional higher rate in the dollar increase for council rates for permanent residential rental properties over and above owner occupier properties.

The council is proposing if there is a residential rental property (house or unit) and the neighbouring property owner occupier property (house or unit) that the owner of the residential rental property is to pay a higher rate in the dollar for council rates. The owner will try to pass this higher cost portion on to the tenant.

What the council is proposing seems un-Australian, discriminatory and completely unfair.

Owning a residential property is not an easy task, a lot of people who have tried this type of investment and after two or three years have given up, sold the property and generally lost money in the exercise and as a result of this and other factors there is now a shortage of residential rental properties in the Cairns area.

State governments and councils can’t supply the required housing, therefore it is left to private investors, generally mum and dad investors, to provide the majority of these properties and it is very important to have a supportive bank, because you will need one for the tough times.

Cairns Regional Council would want the area to grow in population, so it can increase its revenue from additional ratepayers, development costs and charges.

Without this growth the area would stagnate.

At present it would seem there are only a very small number of new residential rental properties being built (units and houses) due to the extremely high costs of development charges and building construction costs.

The council should not want to scare off more investors.

Steven Struber, Woree