Land Valuations

I read your article on Land Valuations and I am not happy with the increase value of my property.

The sky rocketing rental and house prices since Covid and everyone moving here to be safe is ridiculous as it is pricing our children and grandchildren out of those markets. Fine for people moving here who have the money to buy or rent at these prices but not so for the locals who work in low paying jobs like retail.

Also you mentioned the Administration Offices and where is the money coming from for this if not from our rates except for the $40,000 million from the government. The$60 million dollars plus increases over the build is a lot of money for offices for Council Workers and a Library to borrow books from.

The Disaster Center/Conference room is better suited to be built in Maryborough, when was the last time Hervey Bay had a disaster like the flooding in Maryborough on a regular basis.

Council pay rises also mentioned and again most people don't earn this kind of money in their jobs on the Fraser Coast working.

How many hours a week do Councillors work is another question I would like to ask to be entitled to such a wage compared to hard working residents on longer hours and less money.

Your statement of advancing into the future with opportunity and promise statement is for the developers and people with money and not the residents who are struggling to pay their household expense and council rates.

So you can see why residents aren't happy for the increases being forced on them because people who have the money keep wanting to come and live on the Fraser Coast.

I keep hearings with the increase in population the Government will have to build the hospitals, schools etc. but I can not find any information that the Government is going to do any of these things and our infrastructure hasn't been coping with the increase for years now.

So the Council continues to allow all these high rises, units, house and retirement villages to be built without limits so the limited sources we have cannot cope.

So again you can see why residents are not happy with their Council who allow this to happen and the residents continue to suffer.

Delma Taylor

Response to Publisher’s Point and Article

Your Publisher’s Point piece in this week’s publication was misleading as to how economics works, the impact of property prices and land valuation in the Bay on residents (and ultimately renters), and the blame that the Council should take responsibility for. As someone who just saw our land valuation increase by 30%, and therefore expect a substantial increase in our rates, the Town Councils are very much a large part of why we’re seeing these significant increases…and why the benefits are sorely missing for most of us. Let’s look at this soberly.

It’s the Council, going back at least for 20 years, that has promoted and approved rampant development and growth in Hervey Bay, which is one of the primary causes of the questionable level of growth and the rise in property values, and now land valuation; the Council didn’t do the valuations, but they are a direct cause of why these have increased dramatically. Did they not know this would be the result of their policies? If Council members do not understand that this type of rapid and unchecked growth would result in dramatic increases in property values and land valuation, which home owners pay for, that is worrying.

This rise in property values is NOT, repeat, NOT matched by parallel growth in individual incomes or attracting better paying jobs in the Bay, which is partly the cause of the “affordability crisis” talked about in your previous publication; to compare housing costs with capital cities, and say housing here is a “bargain”, is ludicrous and misleading. This increase is also significantly above levels in Maryborough, the other part of the Wide Bay this Council represents.  You can still buy a nice house for under $500k in Maryborough; what could you get in Hervey Bay for that?

I live, as many do in this town, on a fixed income, which does not keep up with inflation nor property value, and now land valuation, increases. How many people in this town are earning 30% more than they were a few years ago? Who of us can expect a 30% increase in the next 5 years, which would be needed if the prediction of significant property value increases, as predicted by the editor, is realised?  From a purely economics perspective, what this means is that when my new rates come out, I will have significantly less money to spend on businesses in the Bay. Saving for a vacation will take longer, and therefore I will be spending less for longer in the Bay. Take notice all you restaurants, all you retailers, all you small businesses, all you advertisers, since there’s a large percentage of home owners and renters whose disposable funds will be significantly reduced when the new rates come due. The Council should take much of the responsibility for less spending here while building a new admin building that most residents question the value of.

All this talk about 70-80% increases in property value is good for a few people, but for the majority of residents, a ticking time bomb. I can sell my house for double what I paid for it 5 years ago:  So what?  Where would I move in to in Hervey Bay since all the other houses in town have increased commensurably?  There is absolutely nothing remotely decent or, more to the point, as interesting as my current house in the price range I could afford in today’s market if I sold my house at these over-inflated rates.

I have a friend in town who bought their 5 acre property 20 years ago, which is now worth more than five times what they paid for it; they know they couldn’t buy something better in this market. They are sad that their children will not be able to afford anything similar…unless they win the lottery or move to an area where incomes would allow them to save for and afford a house, much less a 5 acre spread. One of their children has already moved away from the Bay because there are so few jobs in her field here. The other child is seriously considering moving away. To say that house prices “could skyrocket by up to 75%” in certain suburbs, when no substantial industry or innovative businesses are coming to this region should send shivers up all of us, especially those of us who have children and grandchildren. Who will be the beneficiaries of those kinds of property increases?  (Hint: realtors are NOT taking a smaller percentage on house sales.) Good luck buying a house to all you folks who are working in the predominantly service jobs in this town.

Is it a waste of time blaming the Council:  yes and no. No, because you can thank the Council, in large part, for this reality; they don’t set the land valuation rates, but they are a significant reason for the 30% increase. Yes, it may be a waste of time, because their policies, which the newly elected Council members seem to support, will not benefit the overwhelming majority of residents and their children and grandchildren. We all pay the price.

Z. West