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→
Is Housing Productivity the Un-lock?
The headlines are full of the challenges in our housing market and the various government initiatives to remedy it. While there is no silver bullet, maybe everyone is looking in the wrong place? Is Housing Productivity reform the answer? For example, in preparation for the May budget Dr Jim Chalmers and the Treasury Department are…Read More→
Apartment Development – Boom or Gloom?
Melbourne is being told to “build up” but is being shown why it’s not that easy. State Government planning ambition and market reality have collided. The Victorian Government’s planning rhetoric for more apartment development in established suburbs from Mitcham to Malvern is at odds with their own property taxes and rules that make property investment…Read More→
Annual Return vs Capital Growth
Property investors have always weighed up annual return vs capital growth. More recently, and especially in the apartment market, investors are seeing above average annual return and below average capital growth. Is that a problem? It is if it upsets your investment objective or personal financial implications like tax. If you are an ABC news…Read More→
Global Property Market Update
Global Property Market update If you want an insight to the world’s residential property markets right now, just compare Tokyo’s booming 56% rise in prime prices to Melbourne’s 1.7% slide. In today’s global apartment market, the difference between growth and stagnation isn’t just about interest rates. It’s about the local economy, housing demand, cost of…Read More→
Renters Rights make Owners Picky
No one should be surprised to see the headlines this week on the “dire” rental affordability situation which is not just about renters rights. While news stories will have you thinking the entire Melbourne rental market is a tale of doom and gloom, the reality is more nuanced. Nevertheless, the latest Rental Affordability Index should…Read More→
Changes to Rental Rules
There are some changes to rental rules for investment property in Victoria starting on 25th November. We detailed this in April this year but the time has now arrived. Rental rules to the Victorian Government feel like an iPhone to a 15 year old… they just can’t seem to put it down and leave it…Read More→
Australia’s Apartment Market Snapshot
Traditionally the apartment market in each city around Australia moves in a similar way. Each city will have local boom and flat cycles however historically the broader National economic drivers keep the overall longer-term trend similar for each city. Now it feels like some cities have decoupled from the National trend. Charter Keck Cramer’s national…Read More→