The overseas based owner of 39 San Simeon Drive, Clear Island Waters is selling off to avoid higher land tax bills.. Picture: realestate.com.au

FOREIGN buyers have begun selling off their Queensland property assets following the introduction of a new tax regime.

A surcharge on land tax for absentee (foreign) owners was introduced by the State Government in July.

That means they are charged 1.5 per cent more land tax than Australian based owners, on property holdings with government valuations of more than $350,000.

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Andrew Henderson, principal of John Henderson Professionals Mermaid Beach, has listed three properties where he said the extra tax made the owners consider them no longer a viable investment.

He said many of the foreign investors hadn’t realised they would have to pay the additional charges until they received their latest land tax bill.

For some owners it could be a substantial additional cost of thousands of dollars.

A higher land tax bill means the overseas-based owner of 39 San Simeon Drive, Clear Island Waters has decided to sell. Picture: realestate.com.au

“Anything over land value of $350,000, so when you look at suburbs like Mermaid Beach your average unimproved land value is $1 million, so when you are then talking about (figures like that) it adds substantial costs to the bottom line of the holding costs of that investment property,’’ Mr Henderson said.

He said some of the properties were already negatively geared and on top of rates and current land tax charges it made it unviable for the owners.

He said ultimately the people who lost out where the tenants of these properties, as it was highly likely they would sell to owner occupiers in the current market.

Properties his agency had listed for sale because of the land tax issue included a four-bedroom home at 39 San Simeon Drive, Clear Island Waters.

The waterfront home will be auctioned on October 29. It has views of Surfers Paradise and Broadbeach and is on 1005 sq m of land.

Mr Henderson said the Singapore-based owner had decided the new land tax charges meant it was no longer a worthwhile investment for him. It has an estimated rental income of $650 a week.

A property owned by an Indonesian based investor at 38 Pintail Crescent, Burleigh Waters has been listed for sale for the same reason.

The three-bedroom home was tenanted for $470 a week.

38 Pintail Crescent, Burleigh Waters has been listed for sale by its Indonesia-based owner. Picture: realestate.com.au

The other property affected by the same issue was also owned by an Indonesia-based investor.

The house at 134 Santa Cruz Boulevard, Clear Island Waters was listed for $899,000. It has four bedrooms and is within walking distance of the Surfers Paradise Golf Course.

It is rented for $2080 a month.

134 Santa Cruz Boulevard, Clear Island Waters has also been listed for sale by its Indonesia-based owner. Picture: realestate.com.au

“Regardless whether or not you support the new laws, there is no doubt it is starting to have an effect,’’ said Mr Henderson.