Need for performing the property valuation process is realized among peoples when they went to the real estate market for selling their houses and didn’t have the right prices for their property Econtech, the respected independent economic forecaster, today released the State-by-State, GST adjusted, CPI figures for the September 2000 quarter. The Business Coalition for Tax Reform commissioned the figures at the request of both the Property Council and the Australian Retailers Association.
We cannot advise whether the figures are appropriate for property owners to use or we’ll be prosecuted for breaching price fixing laws. However, we can say the figures are a response to the major problems property owners currently face in calculating CPI linked rents. The Melbourne Property Valuers and Consumer Commission (ACCC) says property owners must not include the GST induced inflation spike in future rents if it increases your net dollar margin.
The Property Council remains locked in negotiations with the ACCC over whether tenants and landlords need to jointly agree to the use of a specific figure or methodology.The process will be much helpful because it will give you the approximate value of your house and then you can improve your house if you want more prices on your house.
We personally briefed ACCC supremo Allan Fels on the issue on Tuesday night. The Property Council’s position is that landlords should not be forced to gain a tenant’s permission to use independently produced CPI figures when there is no credible alternative available. The property industry has made a big start to 2001.
The ACCC has agreed to our proposal to allow property owners to use independently published, GST adjusted, inflation figures to calculate CPI linked rents. The good news is that you won’t be forced to gain a tenant’s permission to use the CPI figures, as originally proposed. This was the major talking point during the Fels briefing.