Property Investors warned now is a ‘critical’ moment to secure an investment property before Christmas, while prices still remain affordable…
Dear Fellow Property Investor,
Melbourne home buyers have been warned it’s a “critical moment” with just days left to secure a home before Christmas.
Property experts are advising to “seize the opportunity now”, with Melbourne offering some of the most competitive deals nationally.
However, experts are warning a potential interest rate in the new year will bump up prices.
With 1369 properties slated for auction it is expected buyers will remain very much in control.
PropTrack senior economist Paul Ryan said Melbourne’s auction clearance rate from last week sat at a steady 58 per cent, “signalling a strong buyer’s market”.
“Buyers are feeling confident, playing sellers off against each other in hopes of securing favourable deals,” Mr Ryan said.
“As we hurtle towards the New Year, with over 1300 auctions set for this weekend, Melbourne buyers face a critical moment to get into the market now.
“Those buyers who capitalise on the current surplus of stock are likely to secure homes before the market activity drops over the Christmas period.”
Buyers advocate Cate Bakos said the amount of homes on the market presents a “golden opportunity” to wrap up the perfect pre-Christmas gift – a new home.
“We’ve had the most stock on the market since October 2012 – so from a supply and demand point of view it’s perfect for buyers,” Ms Bakos said.
“As we get closer to Christmas buyers will get wrapped up in their plans and their attention span won’t be focused on property shopping.
“From a vendors perspective they might want to sell their properties before Christmas for financial reasons.”
So let me ask you a question…
Do you have a game plan for 2024 and for 2025?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)
Or, will you join them?
The choice is yours!
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!
Australian home prices have surged to new heights in October, marking the 22nd consecutive month of growth despite ongoing affordability challenges.
National home prices increased by 0.26 per cent in October, with the combined capital cities now up 5.85 per cent over the past year.
Melbourne emerged as the strongest performer among capital cities, with prices jumping 0.49 per cent after six months of decline.
REA Group Senior Economist, Eleanor Creagh said price falls have started to reverse in Melbourne, with buyers out in force for the peak of spring selling season.
Here are some of Melbourne’s best performing suburbs in the September quarter of 2024;
Interested in getting educated on Australian property investing?
Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Dear Fellow Property Investors,
Victorian government's stamp duty cuts on off-the-plan apartments, units, and townhouses offer significant savings for property buyers. Learn more about eligibility, how to benefit, and why now is the prime time to buy with these expanded concessions.
In a significant policy move aimed at stimulating the property market, the Victorian government has announced a major reduction in stamp duty for off-the-plan apartments, units, and townhouses.
Effective from October 21, 2024, the expanded concessions will apply to all eligible off-the-plan purchases and will remain in place for one year.
This initiative, designed to address the state’s housing affordability crisis, opens a window of opportunity for prospective buyers, particularly investors and owner-occupiers, to secure substantial stamp duty savings.
Key Changes to Stamp Duty Concessions;
Previously, stamp duty on off-the-plan purchases was calculated based on the total price of the property, including the construction value. Under the new scheme, stamp duty will be calculated solely on the land value before construction begins. This shift in policy significantly reduces the financial burden for buyers, particularly in metropolitan areas where property prices continue to rise.
For example, a Victorian purchasing an off-the-plan apartment valued at $620,000, with the land component valued at $77,500, will now pay just $4,000 in stamp duty—down from $32,000. This $28,000 saving represents a significant reduction in upfront costs for property buyers, potentially unlocking the market for a wider demographic.
The changes also eliminate the previous cap on concessions, expanding eligibility beyond first-home buyers to include any purchaser of off-the-plan apartments, units, or townhouses within a strata subdivision.
Who Benefits from the Scheme?
The new stamp duty concessions are aimed at boosting sales in Victoria’s off-the-plan sector, which has been slowing due to high taxes and market uncertainty. The scheme covers properties that are part of a strata subdivision. However, it excludes house and land packages or dwellings not part of a strata subdivision.
Existing concessions for first home buyers remain unchanged. Homes valued up to $600,000 will continue to benefit from full stamp duty exemptions, and concessions apply to properties valued up to $750,000.
A Limited-Time Opportunity for Buyers
The stamp duty concession is a time-sensitive initiative, with the expanded benefits available only until October 21, 2025. Buyers who are considering entering the market are urged to act promptly to take advantage of the scheme, as the concession will revert to its previous structure after this period.
For developments currently under construction, buyers are also eligible for reduced stamp duty, although the exact savings will depend on how much of the construction has been completed at the time of purchase.
What Buyers Need to Know;
For those interested in purchasing an off-the-plan property, feel free to contact Konrad Bobilak CEO of www.investorsprime.com.au via
Summary of Eligibility:
Applies to off-the-plan apartments, units, and townhouses within a strata subdivision.
Stamp duty is calculated based on land value, not total property price.
Available for one year, ending October 21, 2025.
No cap on eligibility; open to all buyers, not just first-home purchasers.
With the Victorian government’s stamp duty concession, now is an ideal time for property buyers to enter the market while this limited offer remains available.
Interested in getting educated on Australian property investing?
Reserve your place and join me and 55 like-minded property investors for the final Real Estate Investing Fast Track Weekend for 2024!
They say a picture can be worth a thousand words….
Check out the latest HTW Australian National Property Clock for Melbourne!
That’s right, Melbourne has been slowly moving though the bottom of the housing market property cycle and is now in the best possible section of the property clock – 8:00 o’clock, moving onto 9:00 o’clock which coincides with the BOOM phase!
The BOOM phase starts at 9:00 o’clock and peaks at 12:00 o’clock…
Remember…
You will ONLY get one opportunity like this every 10 years!
So let me ask you a question…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the recovery phase of the Melbourne property cycle (which, in my opinion, is RIGHT NOW!)
Or, will you join them?
The choice is yours!
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!
Sydney has long been Australia’s most expensive city for homebuyers, but the price difference between Sydney and Melbourne has reached unprecedented levels.
PropTrack’s Eleonor Creagh said that as of August, Sydney’s median house price is 70% higher than Melbourne’s, with Melbourne homes now 41% cheaper – a $600,000 difference, marking the largest price gap in 20 years.
Housing supply and land constraints drive Sydney’s premium.
One significant factor behind Sydney’s rising premium is its constrained land supply.
Sydney’s natural features, including its harbor and surrounding national parks, limit the availability of developable land. In contrast, Melbourne has seen a higher rate of new home completions per capita.
Over the past decade, Victoria averaged 9.5 new dwellings per 1,000 residents per year, compared to just seven in New South Wales, PropTrack reported.
Higher building costs in Sydney
A recent report by The Centre for International Economics (CIE) also highlighted Sydney’s higher construction costs. Red tape, taxes, and other fees make building new homes in Sydney more expensive, with 50% of these costs tied to such charges, compared to 37% in Melbourne.
“Waterfront properties and international appeal have kept Sydney’s market strong,” Creagh said.
Melbourne’s market struggles post-pandemic
Melbourne has lagged behind other cities since the COVID-19 pandemic, losing population and experiencing less dramatic price increases than other Australian capitals.
Since March 2020, Melbourne has been the weakest performing capital, with house prices still 4.7% below their peak. The city has even dropped to fourth place among Australia’s most expensive capitals, with Brisbane and Canberra surpassing it.
Investor confidence declines in Victoria
Several factors are contributing to Melbourne’s continued underperformance.
Higher land taxes for investment properties have made Melbourne less attractive to investors, while stock levels remain high. In July, Melbourne listings were the highest since November 2018, providing buyers with plenty of choices.
The future of the Sydney-Melbourne divide
Looking ahead, Melbourne’s housing market is expected to remain subdued compared to Sydney, Creagh said.
The combination of a high inventory of homes and softer economic conditions may cause Melbourne prices to fall further. However, as Melbourne houses become more affordable, the price gap could eventually narrow.
While Sydney’s geographic limitations and global appeal may ensure it retains a price premium, the historic price swing may make Melbourne more appealing in the future.
“At some point, Melbourne may be seen as undervalued, given its current price levels relative to Sydney,” Creagh said.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2024!
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
You may need to pay land tax if you own an investment property, holiday home, commercial property or vacant land.
What is land tax?
Land tax is an annual tax based on the total taxable value of all the land you own in Victoria, excluding exempt land such as your home (principal place of residence).
Land tax is calculated using the site values (determined by the Valuer-General Victoria) of all taxable land you owned as at midnight on 31 December of the year preceding the year of assessment.
You may have to pay land tax if you own, either individually or jointly with others:
investment properties, including residential rental properties
commercial properties such as retail shops, office premises and factories
holiday homes
vacant land.
Land tax assessments are generally issued between January and June each year.
Land tax exemptions
Land tax does not apply to exempt land such as:
your home, known as your principal place of residence (PPR)
your farm, known as primary production land (PPL)
rooming houses and charitable institutions.
If you start leasing your home (your principal place of residence) or change your address, the exemption ends and you must notify the ATO immediately.
Paying your assessment
There are 3 ways to pay your land tax assessment – via credit or debit card, BPAY, or in instalments via AutoPay.
If you choose AutoPay, you can pay your land tax assessment in fortnightly, monthly or in four equal payments up to 38-weeks from the issue date on your assessment. AutoPay instalments must be set up annually as instalment amounts can change depending on your tax liability.
You can create an AutoPay arrangement via My Land Tax. It is important to pay or set up a payment arrangement on time to avoid late payment interest and recovery action.
Land tax trust surcharge
Land held on trust for a fixed, discretionary or unit trust is generally assessed at trust surcharge rates of land tax. The trust surcharge does not apply to land held by an administration trust, an excluded trust or an implied or constructive trust.
The trust surcharge rates are higher than general land tax rates and apply once the total value of the taxable land held by the trust is $25,000 or more. When the total value of the taxable land is $3,000,000 or more, there is no difference between the general and trust surcharge land tax rates.
If you tell us about the beneficiaries of the trust, we may assess the trust at general rates and may also assess the beneficiaries for their interest in the trust land in any individual assessments they receive.
Absentee owner surcharge
If you are the trustee of an absentee trust, the absentee owner surcharge applies to the trust’s taxable land. The absentee owner surcharge is additional to the land tax you pay at general or trust surcharge rates.
The surcharge is 4% from the 2024 land tax year (previously 2% for the 2020-2023 land tax years, 1.5% for the 2017-2019 land tax years and 0.5% for the 2016 land tax year).
An absentee trust is a discretionary trust, a unit trust or a fixed trust, which has at least one beneficiary who is an absentee person. If you are the trustee of an absentee trust that owns taxable land, you must also tell us you are an absentee owner.
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Did you know that Property Investors are swallowing up even more of the housing market?
In Australian politics there are relatively few issues outside of foreign policy that the two major parties can agree on. But there is one issue where both sides ostensibly agree: greater levels of home ownership.
In the run up to the last federal election, then Opposition Leader Anthony Albanese promised that a Labor government would help people achieve the “great Australian dream of home ownership”.
“For too long Australians who have worked hard have been locked out of the housing market by flat wages and rising prices, unable to even get a foot in the door let alone a roof over their heads,” Albanese said.
Opposition leader Peter Dutton shared similar views on home ownership with the press late last year: “the best way to empower Australians — to make them masters of their fate — is through home ownership.”
The leaders of the major parties sharing this view on home ownership is nothing new. Over 70 years ago there were debates in federal parliament not too dissimilar from todays, in which the leaders of the Coalition and Labor made their case on which party would do a better job building more new homes and getting more Australians into homes of their own.
Rhetoric collides with reality The peak rate of home ownership was recorded 57 years ago as part of the 1966 census, at which time 73 per cent of households owned homes. More recently, the Australian Institute Of Health and Welfare (AIHW) recorded a home ownership rate of 71.4 per cent in 1995. As of the latest data from the 2021 census, the home ownership rate has dropped to 66 per cent.
This raises an uncomfortable question for the nation’s leaders. After spending more than $20.5 billion on grants, concessions and other cash grants to first home buyers in the decade to 2021, home ownership rates have not risen, but instead have continued to decline.
Solely based on the decline in the proportion of households who own homes, there around 560,000 households who are renting today who would have otherwise been homeowners if the home ownership rate remained as it was in 1995.
Rise and rise Despite rising levels of home ownership being the stated priority of both the major parties their policies have achieved the polar opposite. The AIHW data instead illustrates a very different trend: the rise of the property investor.
In 1995, 18.4 per cent of households rented from a private landlord. As of 2020, 26.2 per cent rented from a private landlord and this is arguably somewhat distorted lower by the snapshot being taken during the pandemic.
If we extrapolate that on to the current number of households as determined by the ABS, private landlords have roughly 810,000 more tenant households today than they would have if the ratio of private landlord held housing to overall housing stock remained the same as 1995.
Today’s market According to data from the ABS, over the last 12 months 33.4 per cent of new mortgages for existing properties have flowed to property investors. In terms of new mortgages overall including construction loans and brand-new properties, that figure rises to 34.3 per cent.
By dollar value the proportion of mortgage lending flowing to investors recently hit the highest level since 2017, hitting a share of 36.2 per cent of all new housing finance.
With investors holding 26.2 per cent of occupied housing stock, this level of activity implies a growing proportion of the nation’s housing stock once more flowing to investors, unless otherwise offset by a much greater proportion of owner occupiers making fully cash purchases or investors selling out of the market at a greater rate than they are buying in.
Which raises the big question in all of this, how is the home ownership rate going to rise when the current set of incentives and policies have delivered 25 years of strong growth in the proportion of investor held housing stock instead?
Aspiration nation Both of the major parties like to paint themselves as the standard bearers for aspirational Australians, of folks who are trying to get ahead. But the simple reality is recipe for success is not what it once was.
In decades past, a household could work hard within the reality of their circumstances and work their way up to a median or well above median household income, then be able to purchase a home that reflected that.
In 1999, a household in the 80th percentile for income (higher than 80% of households), could purchase a home that was valued in the 80th percentile. Meanwhile the median earning household could purchase the median house. This is based a household having a 20 per cent deposit, additional cash for stamp duty and spending 25 per cent of gross income on the mortgage.
Today the median earning household can only afford 13 per cent of homes and even more affluent households in the 80th percentile are now competing for median priced homes. In states like NSW and Victoria its even worse. In NSW, households in the 80th percentile can only afford 1/3 of homes, while in Victoria less than half are affordable for these more affluent households.
Reality check Both Labor and the Coalition speak of hard work and the importance of home ownership, yet neither has the makings of a credible plan that would see home ownership rates increase back toward levels seen in the mid-1990s, let alone the all-time peak.
It was once said that doing the same thing again and again, and expecting a different result was the definition of insanity. After spending over $20 billion on first homebuyer support mechanisms over the past decade and actually lowering the home ownership rate during that time, it’s clear a different strategy is needed.
Ultimately, where we go from here is in the hands of the electorate. For decades political leaders have talked the talk on home ownership, then failed to walk the walk. Up until now that arguably hasn’t had a major political downside for the major parties, but with the issue of housing fast becoming one of the hottest in Canberra and around dining tables, one wonders if that will change.
Dear Fellow Property Investor,
Australian big city house prices are tipped to surge by more than a third during the next three years with Sydney's median price set to hit the $2 million mark.
The increases forecast between now and June 2027 would be even more significant than the price rises since the onset of Covid four years ago, which covered interest rates aggressively rising from record-low levels as immigration soared.
Oxford Economics Australia is forecasting that Sydney's median house price will hit $1.934million by June 2027, with Perth reaching $1million.
The median price in Melbourne and Brisbane was also expected to reach seven figures during the same period as prices rose between a third and 43 per cent.
Even before the rate cuts, Australian home lending has increased 13.3 per cent during the past year in a sign buyers fear missing out on more price rises, new official lending figures released on Monday revealed.
This means average-income earners on a $98,218 salary, and with plenty of savings for a 20 per cent mortgage deposit, are being urged to shop around now for a suburban house or inner-city unit under $640,000 to avoid missing out on the boom.
Until the Reserve Bank cuts interest rates, possibly from late 2024, banks are only able to lend a borrower 5.2 times their pay before tax.
But once the rate cuts start, banks will be able to lend more, leading to even higher prices, with values tipped to particularly soar at the more affordable end of the market.
'The November 2023 cash rate hike to 4.35 per cent is expected to be the last this cycle, with the next movement downward,' Oxford Economics Australia said.
'Anticipated interest rate cuts from late 2024, overlaid by a sustained housing shortage, are set to accelerate price growth in 2025.'
Australia's net overseas migration level hit a record high of 548,800 in the year to September but Oxford Economics Australia is expecting that to slow to 410,000 in 2023-24 and 250,000 by the 2026-27 financial year.
'Net overseas migration is driving the current surge in Australia's population growth,' Oxford Economics Australia said.
'While three-quarters of new overseas arrivals enter the rental market, which relies on investor supply, there remains a channel that is adding to the competition for established properties.'
The more affordable end of the property market is tipped to soar as baby boomers downsize and those aged 30 to 45 look to escape rising rents.
'Strong growth in rents is likely having a spillover effect, encouraging some households to enter owner-occupation,' the report said.
Price rises are tipped to grow by at weaker pace in cities like Adelaide and Hobart, that boomed during the pandemic but no longer receive a huge influx of interstate migration.
Canberra, now Australia's second most expensive capital city market after Sydney, was tipped to slip into fourth place behind Melbourne and Brisbane by mid-2027 - even with a typical house price in the seven figures.
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
With property prices reaching record highs across the country, the humble home has become the main breadwinner in many households. In certain suburbs, homes are earning multiple times the average wage.
National property prices hit new record highs in February, up 6.15% compared to a year ago, the fastest annual rise since July 2022, according to PropTrack.
For hundreds of thousands of Australians, that growth means their homes may have generated more income than their own salaries over the past year.
New analysis has used PropTrack's automation valuation model (AVM) to reveal the suburbs around the country where the median property price has grown by more than the average Australian wage.
According to ABS data released in February, the gross weekly ordinary time earnings for full-time adults was $1,888.80 in November 2023, which translates to average annual earnings of $98,218. Given the family home is exempt from the capital gains tax, an increase in value stretches even further than the average annual wage on a dollar-for-dollar basis.
Almost 900 suburbs around the country saw their median property price grow by more than $98,218 in the year to February.
The suburbs that saw the steepest hikes in value were the premium pockets in capital cities, which is unsurprising according to PropTrack senior economist Paul Ryan.
"In exclusive suburbs the same percentage increase will lead to a larger increase in terms of dollar value. And remember too, some of those premium suburbs saw quite sharp reductions in prices in 2022 so this is prices snapping back."
But solid price growth also happened in more affordable areas, Mr Ryan added.
"Over the past year or so, we've seen even and consistent growth within cities. While we're still seeing strong demand and strong growth in premium suburbs, this is happening in more affordable suburbs too."
Melbourne property prices grew by a relatively modest 1.33% over the year, but in the exclusive inner-Melbourne suburbs of Toorak and South Yarra, houses gained $237,486 and $136,311 respectively.
Here are the suburbs in Melbourne where properties have earned the most this past year:
Let me ask you something…
Do you have a game plan for 2024?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?
Or, will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!
Apartments are selling at a loss in Australia's two biggest cities even during a housing affordability crisis, new data shows.
Record-high immigration has pushed up house prices but more inner-city units are selling at a loss in already-overcrowded Sydney and Melbourne than anywhere else.
An ultra-tight rental market and a digit-double surge in rents during the past year is also no guarantee that units will go up in value, especially if they are in a high-rise tower.
In the centre of Melbourne, 40.7 per cent of apartments sold at a loss during the December quarter - or 6.8 times the national average loss rate of 6 per cent, CoreLogic data showed.
Tim Lawless, CoreLogic's head of research, said oversupply was an issue in that part of Melbourne.
'Higher supply levels across the inner Melbourne apartments sector are likely to be a factor in this under performance, coupled with the preference shift towards lower density housing options though the pandemic,' he told Daily Mail Australia.
'Areas of inner Melbourne are now recording the highest population density of any region nationally.'
In the centre of Melbourne, 40.7 per cent of apartments sold at a loss during the December quarter - or 6.8 times the national average loss rate of 6 per cent, CoreLogic data showed (pictured is the Docklands area near the city) - and 98 per cent of loss-making sales were apartments.
CoreLogic noted that 98 per cent of loss-making sales were apartments, even though sellers in the Melbourne City Council area had held on to their apartments for an average of nine years and eight months.
Losses are more likely to occur in areas where apartments were built during the 2010s, when interest rates were lower and building activity was much stronger.
This has led to an oversupply of apartments in some areas and in some cases, quality issues.
'Unit supply was particularly elevated in the mid-to-late 2010s, buoyed by a high concentration of investor participation in the housing market and structurally falling interest rates,' CoreLogic said.
In Melbourne's city centre, the median apartments price is $473,483, or 28.2 per cent less than greater Melbourne's mid-point apartments price of $607,473.
Despite the tight rental vacancy rate, North Melbourne's apartments prices fell 0.3 per cent during the past year to $505,702.
Apartments are even cheaper at Flemington with a median unit price of $410,528.
But at Docklands, they are a bit dearer at $592,863, which would still be attainable for an average-income worker on $98,218.
In the neighbouring Port Phillip City Council area, 21.3 per cent of apartments sold at a loss, with this densely-populated area covering bayside St Kilda where the median apartments price is $530,584.
In Windsor, the median apartments price plunged by 6.2 per cent during the past year to $512,633.
Next door in the Stonnington council area, 27 per cent of apartments sold at a loss.
This covers South Yarra, a suburb with a median apartments price of $579,182, following a 4.2 per cent decline during the past year.
In ultra-upmarket Toorak, the mid-point apartment price fell by 3.4 per cent over the year to $1.033million.
So my advice is do not buy apartments in Melbourne CBD just yet…unless you are taking on a ultra long-term investment horizon and plan to hold them for 20 to 30 years!
If you have enjoyed this short email, then I encourage you to reserve your place and join me and 55 like-minded property investors for the next Real Estate Investing Fast Track Weekend for 2024!
Interested in learning more about property investing in Australia? Please visit our main website InvestorsPrime.com.au for loads of free resources, articles, videos and more to help you on your investing journey.
