[NEW VIDEO]: The Advantages and Disadvantages of Buying Melbourne Houses, Townhouses, and Apartments in 2025!

Dear Fellow Property Investor,

Victorian government unveils 25 more areas where it wants to add high-rise living.

The Victorian government has named 25 more Melbourne areas where it plans to "shake up" planning rules to increase high-rise housing.

The locations — centred around tram and train stations — have been unveiled in addition to 25 locations announced in October, in the government's latest plan to address housing supply and affordability.

Another 10 activity centres were part of an earlier pilot program, meaning there are 60 locations in total slated for fast-tracked high-rise development.

More than half of the new locations for housing "infill" in the form of increased high-rise development are in Melbourne's inner and outer south-east, along the Cranbourne/Pakenham, Frankston, Glen Waverley, Sandringham and Alamein train lines.

The remainder of new locations are in train and tram zones such as Heidelberg, Coburg, Brunswick, Thornbury and Kew.

The government claims the widespread planning reforms will lead to more than 300,000 new homes.

"It just makes sense to build more homes close to these stations, close to these existing services," Premier Jacinta Allan said on Thursday while visiting Noble Park, which is among the new locations.

Ms Allan said it was not enough to just build more homes, but to achieve that "we need to also shake up the planning system".

Other recent state government housing announcements include increasing building height limits in 10 Melbourne hubs, building more townhouses and decreasing housing targets for some areas.

Ms Allan said housing density would be higher in the central area around public transport hubs, then gently decrease "as you move away from the core". 

Government says it will listen to councils and community;

Planning minister Sonya Kilkenny said all locations identified by the government for housing infill would be treated differently, drawing on councils' existing strategic work as well as community consultation.

"I want to hear from the community because your voices matter," she said.

"We want to hear from you and we're listening."

Community consultation on the first 25 locations is set to commence in April, with the next 25 to follow later this year.

"We hope to be able to have new planning rules in place for all 60 centres by early next year," Ms Kilkenny said.

"This is about developing planning rules for the next 10, 20, 30 years so that community has certainty and industry has certainty about where homes can go."

Greater Dandenong Mayor Jim Memeti backed the premier and planning minister as they announced the planning reforms in his area.

"If it means more housing and it's in the right spot then we support it absolutely," he said.

Opposition claims housing plan will threaten beloved neighbourhoods;

Liberal MP Richard Riordan labelled the government's plans for 60 housing density zones in metropolitan Melbourne as "further destruction of what Melbourne cherishes most".

"This is not a solution for the housing crisis in Victoria," the Opposition spokesperson for housing said.

"Geelong, Ballarat, Bendigo, regional Victoria — not mentioned once as a solution for the housing crisis," he said.

"Quite frankly, the war against developers, the war against home owners continues here in Victoria."

He said Victorian developers and home owners had to deal with high taxes and over-regulation, discouraging development.

"We are simply not doing enough to encourage the market to build the homes that Victorians want," he said.

He said the latest plans would put "fear" into home owners and tenants about their neighbourhood changing.

"It says to them, the city, the neighbourhood, the community that you have loved ... is now under threat and will not be the same into the future."

Dear Fellow Property Investor,

RE: List of suburbs shows where house prices are set to SOAR in Sydney and Melbourne when Commonwealth Bank, Westpac prediction occurs

House prices will surge by close to 20 per cent in inner-city Sydney and Melbourne if the Reserve Bank slashes interest rates four times this year, as the major banks are forecasting.

The Commonwealth Bank and Westpac both predict the RBA will trim rates significantly in 2025 - a forecast that real estate data group CoreLogic expects will spark a boom in property prices in a cluster of suburbs in Australia's biggest cities.

Lower interest rates mean banks can lend more to customers as monthly mortgage repayments become more manageable.

CoreLogic's head of research in Australia Eliza Owen and her colleague Robin Han, a senior quantitative analyst, said generous rate cuts will boost markets in inner-city Sydney and Melbourne more than anywhere else in Australia.

'Relatively expensive markets have historically shown stronger responses to reduced cash rate settings,' they said.'

A reduction in the cash rate could spur a recovery trend in the high end of the Sydney and Melbourne housing market, which tend to be the bellwether for broader market recoveries in those cities.

'Lower interest rates are set to boost the housing market in 2025. Lower rates mean buyers can borrow more, spend more, and ultimately make housing a more attractive investment.

'A cluster of suburbs in Sydney's inner west, stretching from Leichhardt to Balmain on the harbour, could see the biggest increase of 19.1 per cent from the current $2.329million. House prices in this gentrified pocket of the city have fallen by 6.9 per cent since peaking last year.

In Sydney's south, the Sutherland Shire is expected to see a 19 per cent bounce from $1.544million.

The Warringah area on Sydney's Northern Beaches, stretching from Curl Curl past Terrey Hills, is forecast to see prices soar by 18.1 per cent from $2.413million.

The Hurstville area in Sydney's south is tipped to see house prices climb by 17.7 per cent from $1.763million. Meanwhile, Hornsby prices could rise by 17.5 per cent from $1.675million as house prices in the eastern suburbs, including Bondi, may increase by 17.2 per cent from $2.975million.

Melbourne is tipped to also see big house price increases in suburbs close to the city if interest rates are cut multiple times.

The Whitehorse area in the city's east, covering Box Hill and Burwood East, is expected to see an 18.4 per cent increase from $1.431million.

Essendon, in Melbourne's inner north, is tipped to see an 18 per cent increase from $1.449million, in an area where median house prices are now 14.8 per cent weaker than the 2022 peak.

The Manningham area, in Melbourne's east covering Doncaster, could see prices go up by 17.4 per cent from $1.439million.

But Brisbane, Perth and Adelaide, which have had double-digit price increases during the past year, are only expected to experience modest price growth in 2025 even if interest rates are cut.

Sunnybank in Brisbane's south is only expected to see a 5.2 per cent increase from $1.1million.

A similar 5.1 per cent increase is forecast for Port Adelaide from $845,446.

But in Perth, the Bayswater-Bassendean area in the city's inner north-east, is only tipped to a a 3.1 per cent increase from $893,976 after house prices in the West Australian capital soared by 16.7 per cent during the past year.

The Commonwealth Bank and Westpac are expecting the Reserve Bank to cut the cash rate to 3.35 per cent by the end of 2025, falling to a level last seen in March 2023.

This easing from the existing level of 4.35 per cent would only partially undo the RBA's 13 increases in 2022 and 2023.

Dear Fellow Property Investor,

ANZ and the Commonwealth Bank are both forecasting a rate cut when the RBA next meets in February. The Reserve Bank says economic management remains a "balancing act".

ANZ has joined the Commonwealth Bank in predicting an interest rate cut in February, which could provide relief to mortgage holders following a sustained rate of 4.35 per cent.

The cash rate has stayed the same since November 2023, with Reserve Bank of Australia (RBA) governor Michele Bullock saying that taming inflation is a "balancing act"."

With inflation coming down and employment growing, we think we remain on the narrow path," she said after the central bank's December meeting.

So, what does the RBA consider when setting its cash rate target, and what do the 'big four' banks think lies ahead?

What are the banks predicting?

ANZ and CommBank are both forecasting a rate cut when the RBA next meets in February.

Westpac and NAB disagree and are predicting Australians will have to wait for the third RBA meeting in May before the cash rate target is changed.

The banks also differ when it comes to estimating how many cuts will occur throughout 2025.

ANZ is the most conservative and is anticipating two cuts this year, while CBA and Westpac both speculate four will occur.

NAB is projecting five rate cuts.

Independent financial comparison site Canstar has estimated that a reduction in monthly repayments from one cut could be up to $92 on a $600,000 loan with 25 years remaining on the term.

How much could Australians save?

On Friday, Canstar released data calculating drops in mortgage repayments for each of the bank's predictions.

If five rate cuts are realised, the drop in monthly repayments could be as high as $441 per month for a borrower with a $600,000 loan and 25 years remaining.

If just two rate cuts occur, the same borrower will save $182 each month.NAB is expecting the greatest relief for borrowers with five cuts compared to ANZ’s forecast for only two cuts.

A rate cut is increasingly likely this February, but Canstar data insights director Sally Tindall said to "prepare for any possibility".

"The big question is just how many rate cuts the RBA will end up handing out. If you’ve got a mortgage, be prepared for every possibility," she said.

"A rate cut in February is increasingly likely, however, with over five weeks to go until the next Board meeting and the RBA firmly focused on incoming data, this could change."

There are several measures that influence RBA decision-making, including inflation and unemployment.

Looking to inflation and employment rates

ANZ's new prediction of a February rate cut follows the release of November's consumer price index (CPI) data on Wednesday.

The Australian Bureau of Statistics reported CPI at 2.3 per cent in the 12 months leading to November, within the RBA's target of 2 to 3 per cent.

ABS head of price statistics Michelle Marquardt said government electricity rebates had a large impact on CPI.

"In some states and territories, households received two rebate payments in October in lieu of not receiving a payment in July. From November, most households have received one payment," she said on Wednesday.

"As a result, electricity prices fell 21.5 per cent in the 12 months to November, compared to a fall of 35.6 per cent to October."

Meanwhile, underlying inflation was at 3.2 per cent in November, down from 3.5 per cent in October.

The RBA's target for this form of inflation is 2 to 3 per cent. Tindall said analysts would also be looking at soon-to-be-released employment data.

"All eyes will be on next week’s ABS Labour Force data and the quarterly CPI results released at the end of the month," she said.

"If core inflation continues along the same trajectory as we saw in the more volatile monthly dataset, then we could well see a rate cut."

Let me ask you something…

Do you have a game plan for 2025?

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 2025!

Click HERE to reserve your seat now!

Dear Fellow Property Investors,

Melbourne homes are now 41% cheaper than those in Sydney, a $600,000 difference, marking the largest price gap in 20 years.

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 2025?

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 2025!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

House prices in 25 Melbourne suburbs have out-earned their owners in the past year, surging at least $100,000 as the family home became 2024’s “most successful” property type.

New Real Estate Institute of Victoria figures show while the wider city’s median house price fell by $20,000 (2.1 per cent) to $913,000 in 2024, a handful of postcodes shrugged off tough conditions.

Multimillion-dollar housing markets including Deepdene, Portsea and Brighton had some of the biggest gains, rising anywhere from $255,000 to a whopping $602,000 in the past 12 months.

But more affordable pockets including Brooklyn, where the typical house today costs $803,250, and Yarra Glen, $935,000, also notched six-figure gains.

The growth would put them comfortably ahead of the $97,864 a year wage of Victoria’s typical worker, according to latest Australian Bureau of Statistics data.

In further good news for some homeowners, there were 92 suburbs where the median house price grew at least 3.6 per cent in the past 12 months to outpace the 3.5 per cent increase in Aussie wages in the same period.

TOP GROWTH AREAS: HOUSES

1. Princes Hill: $1,830,000 — 24.5%
2. North Warrandyte: $1,480,000 — 23.1%
3. Park Orchards: $2,332,500 — 20.2%
4. Deepdene: $3,613,000 — 20.0%
5. Brooklyn: $803,250 — 17.8%
6. Strathmore: $1,730,000 — 15.3%
7. Watsonia: $1,000,500 — 14.9%
8. Portsea: $3,350,000 — 14.5%
9. Diamond Creek: $1,100,000 — 14.0%
10. Launching Place: $736,000 — 13.2%

Source: REIV December Quarter Median Prices, 2024

So let me ask you a question…

Do you have a game plan 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 first Real Estate Investing Fast Track Weekend for 2025!

Click HERE to reserve your seat now!

NAB has come forward with its predictions for interest rate cuts, penning a total of three for 2025.

NAB Group CEO Andrew Irvine released a statement on behalf of the major bank, saying that Aussies should expect some relief after economic troubles plagued many throughout 2024.

“It’s my view that we’re at the hardest point of the economic cycle right now and things will get better from here,” Irvine said.

“We’re seeing tax cuts for Australians that most are actually saving, so deposit balances are increasing in the sector, which I think is promising. And we do expect interest rates to start to fall by the middle of this year. We’re then expecting two further cuts during the year.”

With potential interest rate cuts and a federal election expected to shake things up, 2025 is set to be a big year for Australia. NAB has recognised right now as the hardest point of economic pressure, with challenges set to ease.

“People are juggling, people are budgeting and they’re budgeting hard to make ends meet every single month,” said Irvine.

“The big thing for us is employment and the strong employment market conditions throughout Australia and the minimal amount of unemployment. Typically, in my experience, as long as people have jobs and there is income coming into the household, most bills, most mortgage payments are met, and the worst doesn’t happen.”

According to Irvine, a rate cut will be the sigh of relief Aussies are after and this decision will mark the beginning of the end of the major economic challenges of recent years.

“My prediction is that over the course of the year, it’s going to be slow and measured improvement. And when we get that first rate cut, I think it’s going to have a significant impact on the psyche of consumers, as well as business people that is likely far greater than the actual impact it will have on cashflow,” he said.

“I think that at the back end of this year you’ll start to see good growth. Businesses are confidence players and frankly consumers also, and I just think it will create a positive environment for spending and for employment as well.”

Further to the wider population doing it tough, so too have SMEs. NAB said that this year will bring a sense of optimism back to both consumers and business operators.

“SMEs are the heartbeat of our economy. Thankfully, in many sectors, SMEs continue to be doing well. Regionally, businesses in Queensland, WA, NT are doing well. Businesses that support the resources sector, energy, agriculture, defence – these are large tracts of our economy that are doing well,” Irvine said.

“At the same time, businesses that focus on value and have really good value lines are also trading really well. If you’re a business that serves luxury goods or you’re a restaurant that people want to go to and be seen at, those types of businesses are trading really, really well.

“It’s businesses that have skews that are in the middle, where they’re seeing a downgrade to value and that’s then compressing their margins. And I think that’s where we’re seeing the most pressure in our client base with SMEs.”

Despite this optimism, there are some factors that could stand to disadvantage our economy. The election of Donald Trump in the US is one major hurdle, with looming worries of a “trade war” placing added pressure.

“We will have to see how Mr Trump’s comments about increasing tariffs play out over time, but it’s clear no one wins in a trade war,” Irvine said.

“What gives me optimism is that over the past four or five years, many Australian businesses have diversified their markets. We have seen terrific diversification not just in commodities and agriculture but across all sectors. That puts Australia in a stronger relative position.

“This is testament to the hard work and achievements of many small and medium businesses. We’ve got good products and services to sell, and I continue to be optimistic.”

So let me ask you a question…

Do you have a game plan 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!

Click HERE to reserve your seat now!

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!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

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!

Click HERE to reserve your seat now!

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!

Click HERE to reserve your seat now!