It is no wonder that Unit prices on the Gold Coast have taken a dive. Increased fees and charges have contributed to a significant devaluation of many investment properties. Add to that the fact that many investors have had to absorb a dramatic decrease in rental income as competition increases and rents drop.
The Gold Coast City Council came up with a new way to fleece unit owners in 2006 by increasing rates for owners above the 4th floor. This has been referred to as a VIEW TAX which just about sums up what the increases are all about.
There is no logical reason why the rates should be higher for someone who has a unit on the 4th Floor as opposed to the third floor. The increase in rates is indefensible and who can blame anyone for thinking that it was simply a callous and deceitful way to raise additional revenue.
It gets worse for owners on higher floors. The higher you go the more you pay. The end result is that Unit prices plummet. Prospective buyers take a look at the fees and charges, do a simple equation and work out that many Units on the Gold Coast are a poor investment with little possibility of a decent return on their investment.
We have Council elections in 2012 and whoever runs for Council should think very seriously about removing the draconian View Tax.