PHOTO: RENTAL RETURNS WILL DECLINE, ESPECIALLY THE CASH ELEMENT, SAYS MIKE WARRINGTON (PHOTO/PYMCA/AVALON/UIG VIA GETTY IMAGES)
Financial adviser Mike Warrington is warning his clients that investment properties are no longer the great little earners they once were. What does this mean for renters?
Rental property investment is progressively being defined by our regulators as a commercial activity and as a result, will be impacted more heavily by future costs.
In due course, I suspect that both short and long-term rentals will be caught in the definition of being a commercial activity.
Councils are eagerly trying to discover which properties are being regularly let out via Airbnb or Bookabach-type portals, so they can apply higher commercial rates or bed taxes to boost their revenue.
At face value, this money-grab may seem greedy or harsh, but in reality, the increased levels of tourism – which drive the additional income to property owners – are delivering more wear and tear on regional services and therefore need expansion and maintenance.
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