Weekly Market Update 27th April 2016
By | 27th Apr 16

Video: This week's video is about manufacturing equity and capital quickly through property.

Due to the long weekend, the number of auctions held were down to 462, however the clearance rate remained strong at 77%. Albion achieved its first million dollar sale, with this original condition brick home on 1,550sqm at 4 Dubbo Street, Albion selling for $1,060,000. One of our clients achieved an excellent result at 2 Birch Street, Caulfield South through our Vendor Advocacy services. They purchased the property in 2012 for $747,000 and sold it over the weekend for $992,000.

With the impending election looming there have been talks at both a Federal and State government level about introducing reforms which will affect property investors. One of the proposed plans by the Labor government to abolish negative gearing unless on brand new property purchases.  The Liberal Government have confirmed they do not support this reform. We have already seen buyers becoming cautious with such reforms creating an unknown economic effect. While such reforms will have a broad reach on the greater market place it will most likely effect middle class investors who are trying to create a nest egg for themselves. To read the full article please CLICK HERE. At a state level the government is looking to introduce a vacancy tax to fund family violence housing programs. It is estimated that there are currently between 22,000 -55,000 vacant properties throughout Melbourne.  Such schemes already exist in foreign countries including Britain and Canada where properties left vacant for 2 or more years are taxed annually at 1% of the property’s value. To read the full article, please CLICK HERE.

The Herald Sun published an interesting article over the weekend with predictions for what Melbourne will look like in 2035. Predictions indicate our population will be in the vicinity of 6.25 million, the average house price will have risen to $2 million and a cup of coffee will cost you around $10.50. We are likely to see many changes to the inner and middle ring suburbs as development continues and the inner suburbs will mainly contain high rise developments, the middle suburbs will contain more townhouse style residences and the outer suburbs will contain family style homes. While progress and growth is great, we are warned that overdevelopment may affect our liveability. To read the full article, please CLICK HERE.