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What if a consumption tax (Goods and Services Tax – GST) is introduced and personal tax rates are cut. Will this affect property investment?

by Guest736  |  11 years ago

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What if a consumption tax (Goods and Services Tax – GST) is introduced and personal tax rates are cut. Will this affect property investment?

 Tags: affect, consumption, cut, GST, introduced, investment, personal, property, rates, Services, tax

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  1. Guest736

     Initially, the value of most commodities will rise causing an increase in property values. This is because both land development costs and building materials will increase, directly affecting property values. Longer term, although the tax effectiveness will be marginally less, everything is relative and all other tax-advantaged investments will be similarly affected. If residential property outperforms all other investments now, then there is no reason to expect that this will be any different with a consumption tax.

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