Removing property investment red tape

There are many factors that influence the success level of a new real estate venture – and a few you have no control over, such as property investment red tape.

Beginning with a set budget and a rough timeline is a great way to get your investment started, but often imposed regulations and paperwork can slow you down and have a negative impact on your profitability.

Whether you are developing residential or commercial property in Australia, there are levels of government restrictions that you must pass in order to proceed, such as environmental guidelines and land procedures.

Fortunately, there have been recent efforts to reduce property investment red tape – in order to support business and encourage more efficient growth.

The Business Advisory Forum met on April 12 and agreed to reform the current system by eliminating or modifying some of the most time-consuming and unnecessary procedures.

Focusing on six main areas, the stakeholders have stated their intentions to revise environmental assessments, major projects, carbon and energy schemes, energy pricing, development approvals and risk-based regulation.

Environmental checks may become more efficient as a result of bilateral arrangements that help to fast-track state assessments and approvals – meaning states will be accredited to do certain Commonwealth examinations.

There will be an effort to remove duplication in the approval decisions for major projects, as well as a review of programs that are not complementary to the national carbon price.

The forum also recognised the need to increase competition in energy markets in order to support the best interest of the average consumer.

Stakeholders have also agreed to participate in a Red Tape Challenge in order to identify burdensome procedures that impede success for growth in small and medium-sized business enterprises.

Stripping away cumbersome and ineffective policies will likely support property investment in Australia by creating a more efficient environment in which to operate.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.