Weekly Market Update 24th February 2016
By | 24th Feb 16

The Melbourne property market is off to a strong start with the clearance rate remaining consistent at 77%. The apartment clearance rate lifted to 72% which offers some good news for many investors. Melbourne has experienced the highest population growth over the past decade which has in turn translated into the highest capital growth. With Melbourne predicted to overtake Sydney’s population by 2040, it has many investors looking for the next ‘hot suburbs’ to maximise their returns. Some remarkable results were achieved over the weekend including a 5 bedroom home located at 115 Cornwall Road, Sunshine which sold for $935,000. This once ‘ugly duckling’ suburb has been predicted to see strong capital growth largely due to its close proximity to the CBD. Another great result was achieved at 54 Spray Street, Elwood where a rundown home sold for $4,750 per sqm.

Many first time investors are not aware of all the associated costs with purchasing, owning and maintaining an investment property. In my article published in “Which Investment Property” I highlight points I think are vital to take into account analysing any property investment. While not a large cost by comparison, one of the points we hear constantly from first time landlords is that they didn’t know they were liable for the water rates and the tenant is liable for water usage. To read the full article, please CLICK HERE.

Negative gearing has long been a hot topic and Labour Government has proposed changes if elected to only allow negative gearing on newly constructed properties. These changes will not affect properties purchased before the 1st of July 2017.  They will in turn reduce the capital gains tax from 50% to 25%. Some would suggest this will largely be because new builds do not normally achieve as strong capital growth as already established properties. To read an explanation on these changes, please CLICK HERE.

It looks like the next site for The Block has been chosen, purporting to be returning to Bayside after a three season absence. The Art Deco Factory in Ingles Street, Port Melbourne was supposedly purchased from property tycoon Harry Stamoulis. To see photos of the current building, please CLICK HERE.