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Property Developers

By MelonHead - 1 May 2007 26

In a recent article in a magazine style publication seen all over town the spokesperson for the property people slammed the notion that property developers were greedy and uncaring. As mentioned in the article, all businesses are out to make a profit so why should we pick on property developers?

Hands up those of you who have ever heard, first hand, a property developer sigh, then utter the words, “No, I have made enough profit, no more for me. I will now just cover costs for the rest of the year.”

A quick look around this town at some of the developments in place, and proposed, just wouldn’t convince anyone that the developers of Canberra have no say at all in the local (farce) government. The Government has admitted that a major source of revenue is land release. They are not going to bite the hand that feeds them, therefore I put it to you that land and property developers can get away with almost anything they want.

As for lobbying, I would bring your attention to last night’s 4 Corners, “The Dark Arts”

Thats enough for my first rant.

What’s Your opinion?


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26 Responses to
Property Developers
VYBerlinaV8 now_with 2:16 pm 02 May 07

Hey tuggers – no doubt the occasionaly freakshow can find ways to completely deduct their obligation to nothing, but most wealthy people I know (and I know a number I would consider very wealthy) plan their tax position carefully, but inevitably pay a lot (hundreds of thousands a year) of tax.

Al 1:35 pm 02 May 07

Well you hold onto that belief if you wish Morgan. Meanwhile I’ll keep on ACTUALLY dealing with the people in ACTPLA and making an actual difference.
Pandy you are right – the LDA has effectively disengaged from the community for at least the last year it would seem. Or forgotten they have a website…

In my experience there are two kinds of developers: those who buy land and develop what the planners had in mind for it, and those who buy land with some lesser planning objective (at an appropriately reduced cost) and then undertake a campaign to upgrade the development potential. Tralee is a classic case in point. Waterpoint in Belconnen is another example – land with an 18-storey limit but they lodge a DA for 22 storeys.
The second type of developer is the problem. They are effectively gambling on being able to pull off a windfall profit. Doesn’t always work but when it does, the payoff more than offsets any failures. And the community gets nothing from that windfall gain. Instead the community pays for it. It is this sort of developer that gives the industry a bad name but unfortunately the likes of the PCA and Catherine Carter choose to remain blinkered to the fact.

tuggers 1:21 pm 02 May 07

VY Berlina
That’s the reason Kerry Packer could justify paying 1c in every $ for his personal tax. I did also hear that PBL paid around $40,000 overall tax in his last year alive.

VYBerlinaV8 now_with 9:18 am 02 May 07

OYM, you will likely find that although wealthy businessmen pay a smaller percentage of their real income as tax than we do, that their income is still so high that the actual amount of tax paid is much, much larger than Joe Average pays.

OpenYourMind 8:17 pm 01 May 07

VYBerlina, I’ll betcha most of those property developers have enough tax scams running that their direct tax contribution is quite minimal.

Pandy 6:28 pm 01 May 07

Speaking about which, have you noticed how the Land Development agency has stopped communicating with the public? No media releases or newsletteras from the end of 2005.

http://www.lda.act.gov.au

morgan 4:57 pm 01 May 07

why submit anything to actpla?
pointless… political donations determine how decision are made… there is no other real industry in town to fund the politicking and electioneering associated with the legislative assembly

case in point (and going beyond the issue of residential development to arguably a bigger problem)… the gaol… just another way for ratepayers dollars to end up in the pockets of developers

maybe we need a second and third gaol???

Al 3:10 pm 01 May 07

Given your stated concern about the state of planning in the ACT Kylear, I assume you are currently working on your submission to ACTPLA on their draft Territory Plan?
You cannot complain that ACTPLA/the Government/whoever only listen to developers if they are the only ones talking to them. There are processes in place for you to have your say, so use them:
http://www.actpla.act.gov.au/topics/programs_projects/change/planning_system_reform_project/tplan_consultation
And no I don’t not work for ACTPLA. But I do engage with them regularly on behalf of the community and find them very responsive. And they are crying out for more informed feedback from the community to balance other input they receive.

VYBerlinaV8 now_with 2:38 pm 01 May 07

What do we expect? Are property developers registered charities? Of course they are out to maximise their profit! It’s also worth remembering that there’s NOTHING stopping any of us from pursuing property development as a career.

Remember also that these people pay a lot of tax, even after their deductions, so they do make a positive contribution to the country.

I figure that hey, it’s perceived as a dirty job, but someone has to do it!

Snahons_scv6_berlina 2:32 pm 01 May 07

I don’t think the ‘issue’ with developers is so much that they make heaps of money but the perceived total lack of ethics they possess in the pursuit of $$.

Maelinar 2:06 pm 01 May 07

You forgot the humming all night from the power station, and the ‘for the astute first-home buyer/investor/renovater’

Kramer 1:48 pm 01 May 07

Tralee, MacGregor West, etc if there’s a buck to be made the developers have no qualms about selling you a house in a really awful place.

I can see it now… House & Land Packages Available Now! Molonglo Views Estate, minutes from Belconnen, close to Belconnen Golf course with stunning views to the Brindabellas and Molonglo River. Conveniently located off Stockdell drive, Holt – adjacent to Belconnen Sewerage Treatment Plant.

S4anta 1:34 pm 01 May 07

more homes = more land tax. chicken, egss and donkies.

KandyA 1:30 pm 01 May 07

what about all the hard-working developers that have given it their best shot to put in some affordable housing in this town and have gone to the wall, who now sit home in despair, without the $$ for a pc or ISP, unable to respond to your claims? hey? what about them?
$42 mil profit you say?.. well, I bet he coulda won more than that on the first at Flemington…with a bit of luck that is

Deano 1:14 pm 01 May 07

In the CT last weekend figures were quoted for Bob Winnel’s Tralee development. It cost him $8 million to purchase his share in the land and he expects to make $50 million from selling it off after development. Nice work if you can get it!
No wonder he is going all out against the airport – screw the rest of Canberra with aircraft noise, he has to make his profit.

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