Sales Slow – Stamp Duty Blow
If property sales volumes and/or prices generally are both down between 5% – 10% from 2024-25 to 2026 -27, stamp duty revenue could leave up to a $2.5 billion hole in the budget estimates. Over the last six years stamp duty revenue to the Victorian Government has ranged from $6.14 billion to $10.36 billion. In…Read More→
Good Yield Hunting
The news is awash with stories of how real estate prices are falling and rent is rising. So if you are looking for a property investment with a good yield this may be your time. Here is a few of the recent news stories. ABC – Property downturn spreads to 93pc of suburbs in Australia’s…Read More→
Could “No Quoting” fix Underquoting?
The underquoting debate continues to bubble away with more rule changes on their way soon. The proposed changes to property Auction rules include a requirement for vendors to disclose the reserve price 7 days prior to auction. Subject to the wording of the final act, it may have overlooked one important point. What if the…Read More→
“Pushmi Pullyu” Housing Policy
Australia’s housing market is a complex cocktail of everything from government policy to population to job security to financial inputs to market confidence etc etc. The current housing policy does sometimes feel like the mythical African “Pushmi Pullyu” animal of Dr Dolittle fame. While it is unanimously agreed by all governments and commentators that we…Read More→
High asking rent may not mean Higher Return
Maximising the rent is important for investment owners but setting a high asking rent does not always translate into a better annual return. But how is that possible? Doesn’t a higher weekly rent mean a higher return? Well sometimes yes, but sometimes no. Every property investor wants to maximise the return on their investment. But…Read More→
Property tax changes – Any winners?
Is it possible there are no winners from the Federal Government’s property tax changes to CGT and negative gearing. The rhetoric is that it will help younger or first home buyers. But here is the catch. This cohort of potential buyers are; Usually renting and rents are rising (see Domain’s research released today) They are…Read More→
Annual Return takes centre stage
For as long as we can all remember, Melbourne real estate has been more about capital growth and less about annual return. Sure, a good rental income is nice, but the dinner party bragger never mentioned earning a 7.5% yield. They tended to boast more about how their property investment had doubled in value, as…Read More→
Capital Gains Tax & Negative Gearing – What’s changed.
Here are the changes to capital gains tax (CGT) and negative gearing as announced by Jim Chalmers in last night’s Federal Budget and foreshadowed in our last update. The impact on apartment owners in Melbourne will actually be minimal. There are several reasons for this which are detailed below. CGT and the rule changes apply to…Read More→
CGT and Negative Gearing – May Budget
It looks increasingly likely the May Federal Budget will include a reduction to capital gains tax (CGT) exemptions and potentially negative gearing concessions. While not exclusively a property tax CGT is a big part of the property investment landscape. It’s also likley any changes to CGT in the 12th May budget will be “grandfathered”. This…Read More→
Win-Win for Rental Rule Changes
The rental rule changes in Victoria over the last 5 years have been bemoaned by owners and agents alike. They have included, A reduction in owner’s rights. Extra costs. More regulation and process. Tenant friendly rules and VCAT outcomes. At first, this felt like an owner’s fundamental property rights were being stripped away. I would…Read More→
Apartment rent & values to grow.
Two forces are at odds in the Melbourne market as apartment rent and values are set to surge. One driver is pure market forces and the other is political, as the state government attempts to artificially retard the growth. Who do you reckon will win? The market force direction is hard to miss. CBRE just…Read More→
Land Tax – House vs Apartment
It’s land tax time in Victoria and bills are hitting the kitchen table with a thud. Once bemoaned only by large commercial real estate investors, now land tax hits almost every residential rental provider. Interestingly though, house owners are paying very different amounts in land tax to apartment owners. Even when two properties are generating…Read More→