Queensland landlords face $593 million black hole sparking mass property sell-off

14 hours ago 3

How much are Qld’s landlords really making on their investment properties? Queensland landlords have plunged into a $593 million black hole as soaring interest rates wipe out property returns ahead of a looming federal tax crackdown. New data shows a whopping 54.2 per cent of Aussie landlords, or about 1.27 million people, recorded a net rental loss in 2023-24. It marks the highest share of investors in the red since 2019-20, and a stark reversal from the low-rate glory days of the pandemic. Carlisle Homes’ Negative Gearing Map analysed ATO data to provide the most recent benchmark of property finances, laying bare a direct link between rising borrowing costs and the current investor cash drain. The data showed a direct link between rising holding costs and the investor cash drain In 2021-22, interest paid on mortgages for Queensland investment properties stood at $3.29b. By 2023-24, that figure had nearly doubled to an eye-watering $6.48b, wiping out rental gains and dragging properties in the Sunshine State from a $712m collective profit into a $593m shortfall. It comes ahead of sweeping tax changes taking effect from 2027, which will ban mum-and-dad investors purchasing establis...

Read Entire Article