Victorian Land Tax on Holiday Homes

The Victorian Government has significant debt and they have aimed their focus on secondary homes.

Many older Victorians have bought a secondary property to enjoy in their retirement, with their family and friends.

But for those on fixed incomes or reduced savings, the Land Tax bill has increased significantly in the past few years and posed an impediment.

We now see a surge in properties on the market as the Land Tax bill is getting bigger and causing financial strain to owners.

For example, when your land value is $1,000,000 against a capital improved value of $1.6m, you will be charged $4,650 in 2025.

One of your options to continue using your property is a Line of Credit reverse mortgage.

You set a facility amount to use when you wish, and interest is charged on the amount you use. Note that interest is compounding.

If you take a long-term view, with a capital growth of a conservative 3%, that is $48,000 growth per annum ongoing.

Using the reverse mortgage Line of Credit, borrowers have the capacity to pay Land Tax and most other maintenance costs in order to retain their prized enjoyment.

For further information, please call 1300 663 534