One of the biggest buyers on The Block, Danny Wallis, is set to sell all of Victorian investment properties, with new taxes and regulations making it untenable for the investor.
According to realestate.com.au, the Melbourne IT entrepreneur, who has spent more than $30 million purchasing 11 individual Block properties, is looking to sell down his portfolio, including three homes from the show’s 2022 season set in Gisborne.
Mr Wallis said he had already sold one of his Victorian properties that was renovated by The Block contestants Mitch and Mark, because of a State Government plan to change the land tax payment threshold from January 2024.
Under the changes, introduced under former premier Daniel Andrews, homes owners will pay land tax if their investment or secondary property, such as a holiday home, is worth $50,000 or more, compared to the current $300,000 threshold.
“I’m saving on Daniel Andrew’s land tax, I’m going to sell because I’m sick of the land tax going up and up and up,” Mr Wallis said.
“I’m going to move all my investments out of Victoria.”
Mr Wallis said he was planning to invest interstate instead, although it might take around two years to sell his entire Victorian portfolio.
“It’s dumb there’s a rental crisis and I’ve got to sell when so many people are looking for homes,” he told realestate.com.au
“I know so many landlords who are selling because of the land tax.”
Mr Wallis said changes to the Residential Tenancies Act was another factor hurting investors.
“I’ve got a tenant who painted their bedroom black, including the ceiling,” he said.
According to a recent survey from the Property Investment Professionals of Australia (PIPA), 38 per cent of investors have indicated they might sell a property in the next 12 months, with the top reason being governments increasing or threatening to increase taxes, duties, and levies (47 per cent).
The survey found that In the past 12 months, 31.35 per cent of Victorian investors have already sold one or more rental properties – the highest of any state or territory.
PIPA chair Nicola McDougall said investors were looking to sell thanks to government changes.
“Investors are really feeling like they’ve lost control of their real estate assets,” Ms McDougall said.
“So that’s actually motivating many more of them to sell than perhaps previously would have.”
Ms McDougall said governments need to work with investors, not against them.
“It does appear at the moment that policymakers are more open to discussing the needs and wants of investors more than they ever have before,” she said.
“As someone who represents the industry, we’ve certainly found over the years that, investors have been seen as the evildoers or the cash cows.
“At a policy level, it would be really nice to see some type of incentives that would encourage more investors to get into the market, but also encourage investors to stay for the long term.”