The Federal Budget and its Uneven Impact Across Property Segments
On Tuesday 12th of May, at 7.30pm, our Federal Treasurer announced some significant tax change proposals. Two in particular, negative gearing and capital gains tax, will have an impact on our property markets. Last week, I wrote a blog about both of these tax arrangements. The proposed changes are significant. And they will absolutely skew…
Capital Gains Tax and Negative Gearing: What Property Investors Need to Understand Right Now
Many people don’t properly understand what Capital Gains Tax and Negative Gearing actually mean, or how each are formulated. With budget night rumour flying, it’s prudent to assume that both are going to change soon. The Albanese government may have entered their second term with a promise that “negative gearing changes were ‘off the table’”,…
Underbidder to Buyer: The Eight-Hour Twist in a Passed-In Auction
There’s a common misconception that auctions end when the hammer falls. In reality, some of the most important moments begin after the crowd disperses. Yesterday was a perfect example. We attended an auction where we were not the highest bidders. We competed against two other buyers, but the property was passed in to another party…
How would I invest one million dollars in Victorian Property?
I get asked this question all the time. It’s not that easy to just list a location though. Property investing should never be a game of picking a hotspot. I’ve learnt my many years of personal property investment what the secret to investment success is. The secret is a wonderful cocktail of many ingredients; One…
The Quiet Strength of Glenroy and the Mid-Tier Market
Over the weekend, we missed out on a superb, family home for an investor client of ours. This result in Glenroy got me thinking, and it is worth unpacking. The home sold under the hammer for $968,000, above a reserve of $935,000. There were four bidders; three of which were owner occupiers and we represented…
Do Better Schools Really Mean Higher House Prices? The Evidence from Victoria
I regularly speak with buyers who include this in their key criteria: “We want to be in a top school zone.” Sometimes they have children, sometimes they don’t. And increasingly, investors are adding it to their criteria too. It’s understandable. The idea of securing a strong public education without private school fees is compelling. In…
Everyone says they’ll buy in a downturn. Few actually do
In just one month, our market has made a complete shift. January started out strongly in Melbourne, with strong investor enquiry and first home buyer activity defining the start of the year. But throw in two interest rate hikes, a US led Middle Eastern conflict, a pinch of inflation wows, a shake of wallet shock…
The Hidden Risks of Chasing Yield in Property Investing
When it’s tax time, as investors we get a glimpse into the outgoings and emerging patterns across our property portfolio. With Victoria’s rental law changes that have been applied over recent years, it’s easy to see that operating expenses have increased. We modelled out the list of expenses for each property as a percentage of…
The value that optimal orientation represents
In the southern hemisphere, we talk about optimal orientation for property as being north-facing. Watching British renovation television programs always reminds me of our universal need for natural light when they place an emphasis on capturing their south-facing sun. Many of us like to enjoy the benefit of sunshine all year round in our homes. A well orientated…
Why I don’t like buying brand new dwellings
In my role as a buyer’s agent, I’m often asked why I rarely recommend brand-new property to my clients. It’s a fair question. New homes look appealing, they represent low-maintenance, and the marketing around them is very persuasive. But after nearly two decades of buying property for clients, I’ve learned that brand-new means more risk,…
Does your building and pest inspection clause really protect you?
We face this question every single time we assist a purchaser with an offer that is subject to an acceptable building and pest inspection being done within a short timeframe following the acceptable offer. Building and pest inspections offer buyers peace of mind, and in a lot of circumstances we arrange them prior to making…
What does the price ratio between Melbourne’s fringe suburbs and middle ring suburbs tell us about the value proposition that is emerging?
For the last two years, Melbourne’s outer-ring, fringe suburbs have been delivering outperformance capital growth in the house market category. While we have incentivised first home buyers with the broader rollout of the Federal Government’s 5% deposit guarantee, and stamp duty concessions remain in place, there is another reason why these areas have delivered growth.…
REGISTER TO OUR NEWSLETTER
INFORMATION
CONTACT US
1A/58 ANDERSON STREET,
YARRAVILLE VIC 3013
0422 638 362
03 7000 6026
CATE@CATEBAKOS.COM.AU
