Economists have had mixed reactions to a Merri-bek councillor’s proposal to raise annual rates for investor landlords to an average of $3,600 per property to help first-home buyers.Economists have had mixed reactions to a Merri-bek councillor’s proposal to raise annual rates for investor landlords to an average of $3,600 per property to help first-home buyers.
“Isn’t it a part of our national myth that everyone wants to own their own home? Well, here are the types of policies we need to do that,” he said. “Unlike owner-occupiers and renters, investors can sell at least one residential property without making themselves homeless. Ratepayers unable to keep up with expenses associated with maintaining an investment property may sell their investment properties,” the motion says.If the motion succeeds, a report will be prepared by the council and presented to a council meeting by September.
David Hayward, an emeritus professor of public policy and the social economy at RMIT University, said the plan was a “terrific” idea but questioned how much of an effect it would have on the market.
He said the policy would make the rental crisis in Merri-bek “much, much worse” as investors would sell off their properties in the municipality and opt for other suburbs nearby.
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