Search Results

Located on one of Melbourne’s most prestigious tree-lined boulevards — St Kilda Road, Melbourne 3004   — stands The Fawkner , a high-end residential complex that seamlessly blends modern design with luxurious living.   Apartment 414/499 St Kilda Rd, Melbourne 3004, is a one-bedroom residence within The Fawkner  featuring a well-thought-out layout, full functionality, top-tier security, and refined attention to detail — meticulously crafted for those seeking a lifestyle in the inner city that is both elegant and vibrant.   Completed in 2017, the apartment has been exceptionally well maintained. Owned by its first and only owner, who has taken great care of the property , the unit is spotless, well-kept, and presents as new — offering outstanding value. Stepping inside, you’re immediately greeted by an open-plan kitchen that seamlessly combines design and functionality. Luxury is found in the full suite of high-end German brand Gaggenau appliances . The attention to detail is showcased in the natural marble  used for the island bench and splashback — with its organic veining and exceptional texture, it elevates the visual appeal while enhancing long-term durability.   The kitchen also features a fully integrated fridge by Liebherr , a high-end German appliance brand — minimalist on the outside, yet luxurious within. The living room faces due north  — the most sun-drenched and desirable orientation in Australia. Floor-to-ceiling double-glazed windows flood the space with natural light while keeping out unwanted noise. The living area opens directly onto a spacious 23-square-metre balcony, adding endless possibilities to everyday living.   To the right is a generously sized study,  which can easily function as a private home office, meeting space, or multi-purpose activity room — offering a quiet and independent area ideal for remote work, artistic creation, or personal hobbies. Standing on the balcony of this apartment, you’re greeted by a harmonious blend of lush streetscapes and modern architecture along St Kilda Road . The apartment also overlooks the beautifully landscaped internal courtyard, adding a sense of tranquility and greenery to everyday life. The bathroom continues the home’s elegant minimalist aesthetic , featuring full-height natural stone looking wall tiles that exude texture and quality. The wall-mounted, concealed toilet and sleek vanity enhance visual cleanliness while making daily maintenance easier.   The separate shower is fitted with a glass partition and a rain shower head, achieving a practical wet-dry separation while ensuring both comfort and functionality. The bedroom features a practical and well-proportioned layout. Large sliding glass doors not only bring in abundant natural light but also provide direct access to the balcony, creating a seamless connection between indoor living and outdoor space. 户型图只是用于展示用，所有尺寸或面积均为近似值，总面积包括阳台 📐 Floor Plan Overview｜Well-Proportioned Layout, Separation of Living and Rest Areas, Fully Functional   This boutique apartment features 1 bedroom, 1 study, 1 bathroom, and 1 car space , with a total area of approximately  89.6㎡ . The internal living space measures 66.6㎡, complemented by a spacious 23㎡ north-facing balcony. The layout is open and airy, offering excellent natural light throughout. ✨  Apartment Highlights • Luxury residence, located on Level 4 of The Fawkner • Expansive balcony accessible from both the living room and bedroom, offering leafy city views • Top-of-the-line Gaggenau kitchen appliances, integrated Liebherr fridge, and natural marble benchtops — a five-star cooking experience • Spacious study area, perfect for a home office setup • Floor-to-ceiling windows provide abundant natural light and a bright, airy atmosphere • Concealed split-system air conditioning — quiet and efficient • Bedroom features built-in wardrobes — practical and stylish • Includes one secure basement car space ✨ Facilities： • Private cinema • Indoor infinity pool with views over St Kilda Road • Private wine cellar and tasting room • Function room and meeting facilities • Gym, sauna, steam room, and sun lounge area • Tea room, theatre space, children’s activity room, and more — all fully equipped 📍  Prime Location・Complete Lifestyle Amenities   The Fawkner is ideally located in the prestigious 3004 postcode, just 4km from Melbourne CBD  — around a 10-minute drive, with direct access to public transport. Surrounded by some of Melbourne’s most historic and culturally rich premium suburbs, including South Melbourne, South Yarra, and Albert Park, this location offers the best of elite inner-city living. 🚌  Transport: Tram stop right at your doorstep, with direct access across the city.   🍽  Dining: Surrounded by boutique restaurants along Clarendon St, Dorcas St, and Park St.   ☕  Cafés: Close to popular hotspots like St Ali, Dead Man Espresso, and Chez Dré.   🛍  Shopping: Near South Yarra Shopping Centre, Emporium, and Melbourne Central.   🎓  Top-tier Education Nearby: • Wesley College • Melbourne High School • Mac.Robertson Girls’ High School • Close to University of Melbourne, RMIT, Monash College, and Victoria University   🌳  Leisure & Lifestyle: • Royal Botanic Gardens • Albert Park Lake • Arts Centre Melbourne, Immigration Museum • Charming Victoria-style precincts: Victoria Ave, Bridport St — full of boutique shops and gourmet destinations

The Reserve Bank of Australia (RBA) has announced a 25 basis point cut  to the official cash rate, bringing it down to 4.1% . The decision, made on February 18, 2025 , reflects the central bank’s response to easing inflation and the need to support economic growth. This move comes after a series of rate hikes in 2022 and 2023, which were implemented to curb inflationary pressures. Australia’s latest economic indicators, with a 4.10% cash rate, 2.4% inflation, and a trade-weighted index of 60.6 , reflecting a stable monetary policy. Key Reasons for the Rate Cut 1. Declining Inflation Recent data shows that inflation has eased significantly from its 2022 peak, with underlying inflation recorded at 3.2%  in the December 2024 quarter. This decline suggests that price pressures are moderating, allowing the RBA to adopt a more accommodative stance. 2. Economic Growth Concerns Slower economic activity and consumer spending prompted the RBA to lower interest rates in an effort to stimulate borrowing and investment. The central bank aims to ensure that businesses and households can access credit at more affordable rates. 3. Job Market Stabilization The Australian job market is showing signs of recovery, with job advertisement volumes stabilizing. Experts anticipate that employment levels will improve throughout 2025, supporting economic resilience. Impact on Borrowers and Homeowners For mortgage holders, the rate cut is expected to provide some relief after the sharp interest rate increases over the past two years. Homeowners with variable-rate mortgages will likely see their repayments decrease in the coming months. However, financial analysts advise borrowers to check with their banks, as lenders may delay passing on the full benefit of the rate cut. The next interest rate update will be announced at 2:30 PM on April 1, 2025 . Bank Responses and Market Reaction While major banks are expected to adjust their interest rates in response to the RBA’s decision, their reaction times may vary. Historically, some lenders have been slower in reducing rates for mortgage customers while adjusting savings account rates more quickly. In the stock market, the rate cut had a mixed impact. The ASX 200  initially fell as investors digested the news, particularly in the banking and mining sectors, but economists suggest that lower interest rates may eventually lead to increased investment and corporate growth. The RBA has signaled that it will continue to monitor economic data closely. While the rate cut provides immediate relief, further adjustments will depend on inflation trends, consumer spending, and global economic conditions. If inflation remains controlled and economic growth slows further, additional rate cuts may be considered later in 2025. The RBA’s decision to lower interest rates marks a shift toward supporting economic expansion after a period of aggressive tightening. While it offers relief for borrowers and businesses, the broader effects on housing, employment, and investment will unfold in the coming months. The central bank remains committed to balancing inflation control with economic stability, making future rate decisions a critical focus for policymakers and investors alike. References 1. Reserve Bank of Australia - Official Statement on Interest Rate Decision ( rba.gov.au ) 2. The Australian - “RBA Rate Cut and Job Market Outlook” ( theaustralian.com.au ) 3. The Guardian - “Relief for Borrowers as RBA Cuts Rates to 4.1%” ( theguardian.com ) Disclaimer This article is for informational purposes only and does not constitute financial or investment advice. Readers should consult financial professionals before making decisions based on interest rate changes.

Attending an open house is an exciting step in the home-buying journey, but it’s important to look beyond the aesthetics and evaluate the property carefully. A house might seem perfect at first glance, but hidden issues could lead to costly repairs or an inconvenient living situation. To make an informed decision, here’s a detailed checklist  of things to inspect at an open house before making an offer. Source: Cornerstone Home Inspection 1. Structural Integrity & Exterior The structure of the house  is one of the most critical aspects to check. A solid foundation and well-maintained exterior ensure long-term durability and prevent costly renovations. ✔ Cracks in walls or ceilings  – Small cracks might be cosmetic, but large or widening cracks could indicate serious structural problems. ✔ Roof condition  – Look for sagging areas, missing tiles, or signs of water damage, as roof repairs can be expensive. ✔ Windows and doors  – Test them to ensure they open and close smoothly without sticking or gaps that let in drafts. ✔ Drainage and gutters  – Blocked or damaged gutters can lead to water pooling around the foundation, causing long-term damage. 💡 Tip:  Bring a flashlight to check dark corners and under sinks for signs of hidden cracks or dampness. 2. Water Damage & Mould Water damage can lead to costly repairs and health issues. It’s crucial to check for leaks, dampness, and mould growth, which can indicate poor ventilation or plumbing problems. ✔ Water stains on ceilings and walls  – Brown stains or bubbling paint may be signs of previous or ongoing leaks. ✔ Mould or mildew  – A musty smell or black spots in bathrooms, kitchens, and basements could indicate moisture problems. ✔ Water pressure  – Turn on taps and showers to test water flow and check if drains are slow or clogged. ✔ Roof leaks  – Look for any discoloured patches on the ceiling, as they might indicate past leaks that haven’t been properly fixed. 💡 Tip:  Open cupboards under sinks to check for leaks or damp smells that could indicate plumbing issues. Structural problems, water damage, electrical faults, or pest infestations may not be immediately noticeable but can lead to costly repairs in the future. 3. Electrical & Plumbing Systems Faulty electrical or plumbing systems can be expensive to repair. Since these issues may not be immediately visible, testing them during an inspection is essential. ✔ Power outlets & switches  – Plug in your phone charger to test if outlets are working. ✔ Circuit breakers  – Ask about the age and condition of the electrical panel to ensure it meets safety standards. ✔ Hot water system  – Find out how old the water heater is and whether it provides sufficient hot water. ✔ Drains and pipes  – Listen for gurgling noises when running water, as this could indicate blockages. 💡 Tip:  If you’re serious about a property, consider hiring a professional to inspect the electrical and plumbing systems before committing to the purchase. 4. Noise & Surroundings A house might seem peaceful during an inspection, but it’s important to consider external noise and future developments in the area. ✔ Traffic noise & neighborhood activity  – Visit at different times of the day to check for noise from roads, trains, or nearby schools. ✔ Proximity to amenities  – Check how close the property is to public transport, shops, schools, and medical facilities. ✔ Nearby construction projects  – Look for signs of future developments that may impact noise levels or property value. ✔ Neighbors & privacy  – Observe if the house provides enough privacy or if it’s too close to neighboring properties. 💡 Tip:  Use online tools to check for upcoming infrastructure projects that might affect your living environment. Checking for stains on ceilings, musty smells, and damp areas in bathrooms or basements can help identify leaks or ventilation issues before purchasing. 5. Pest Infestations Pest problems can be a nightmare to deal with and may require costly extermination services. Look for early signs of infestations. ✔ Termite damage  – Knock on wooden surfaces to check for hollowness, which could indicate termite activity. ✔ Rodent droppings  – Check kitchen cupboards, basements, and corners for signs of pests. ✔ Ants and cockroaches  – Look for live insects or trails near food storage areas. ✔ Wasp nests or bee hives  – Check eaves, balconies, and outdoor spaces for unwanted nests. 💡 Tip:  If you suspect pests, ask the agent for details about past pest control treatments. 6. Storage & Space Even if a house looks spacious, it’s important to check if it meets your storage and functionality needs . ✔ Closet and cupboard space  – Open wardrobes, kitchen cabinets, and storage areas to ensure they’re practical for your needs. ✔ Garage and parking space  – Measure if your car will fit and check for additional storage areas. ✔ Room sizes & layout  – Bring a tape measure to check if your furniture will fit comfortably. 💡 Tip:  Consider your long-term needs—will the space accommodate your lifestyle in the years to come? If major defects are found, buyers can use the inspection report to renegotiate the price, request repairs, or reconsider their purchase decision altogether. 7. Natural Light & Ventilation A well-lit and well-ventilated home contributes to comfort and energy efficiency. ✔ Window positioning  – Look for natural light in key areas such as living rooms and bedrooms. ✔ Airflow  – Check if windows can be opened for cross-ventilation, especially in kitchens and bathrooms. ✔ Heating & cooling systems  – Ask about the age and efficiency of air conditioning and heating systems. 💡 Tip:  Visit at different times of the day to see how much sunlight each room gets. 8. Legal & Safety Considerations Before making an offer, ensure the home complies with legal and safety regulations . ✔ Building permits & approvals  – Check if any renovations or extensions were done legally with council approval. ✔ Smoke detectors & safety exits  – Ensure the property meets fire safety requirements. ✔ Strata fees & restrictions  (for apartments) – Understand ongoing costs and rules associated with the property. 💡 Tip:  A professional building inspection can confirm if the house meets safety and legal standards. Some inspections focus only on structural integrity and plumbing, so if termites or rodents are a concern, it’s advisable to book a separate pest inspection. Final Thoughts Attending an open house is more than just admiring the design and layout—you need to check for potential hidden problems  that could cost you in the long run. By focusing on structural integrity, plumbing, electrical systems, storage, natural light, and legal considerations , you’ll be in a better position to make an informed decision. Taking notes, asking the agent key questions, and bringing a checklist  can help ensure you don’t miss any important details. If you’re serious about a property, consider hiring a professional inspector  to conduct a thorough assessment before making an offer. By doing your due diligence, you’ll increase the chances of finding a home that’s not only beautiful but also safe, functional, and a great long-term investment . Thinking of Buying a Home? If you’re preparing to buy a property and need professional advice on inspections, mortgage options, or legal requirements , feel free to get in touch with our real estate expert today ! 🚀 References 1. Consumer Affairs Victoria – Buying and Selling Property • https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property 2. NSW Fair Trading – Buying and Selling Property • https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property 3. Real Estate Institute of Australia (REIA) – Property Buying and Selling Advice • https://reia.asn.au/ Disclaimer This article is for informational purposes only  and should not be considered legal, financial, or real estate advice. While we strive to provide accurate and up-to-date information, regulations regarding property inspections, transactions, and legal requirements may vary by location and change over time. Readers are strongly encouraged to consult licensed real estate professionals, building inspectors, financial advisors, or legal experts  before making any property-related decisions. The author and this platform are not responsible for any decisions or actions taken based on the information provided in this article.

The Australian government, under Prime Minister Anthony Albanese, has announced a new policy barring foreign residents from purchasing existing homes for two years. This measure, effective from April 1, 2025, to March 31, 2027 , is intended to curb foreign investment in the established housing market and address housing affordability concerns for Australian residents. The policy, unveiled by Treasurer Jim Chalmers and Housing Minister Clare O’Neil on February 16, 2025 , extends existing restrictions on overseas investors, explicitly preventing temporary residents in Australia from acquiring existing residential properties. Previously, foreign investors were already limited in purchasing second-hand properties, but this new directive tightens restrictions further by also including temporary residents who are in Australia for work or study purposes. The government justifies the move as part of a broader effort to free up housing stock and encourage investment in new housing developments rather than existing properties. “We must put Australian homebuyers first. This policy ensures that housing remains accessible for our local communities,”  said Prime Minister Anthony Albanese  during a press briefing. Housing Minister Clare O’Neil  emphasized the importance of addressing supply shortages: “By limiting foreign purchases of existing homes, we are ensuring that more Australians have a fair chance at homeownership. We want to see new developments and not just competition over existing stock.” Housing Minister Clare O'Neil says the ban will get more Australians into their own homes. (Lukas Coch/AAP PHOTOS) Potential Impact on the Real Estate Market 1. Foreign Investment Shift to New Developments With foreign buyers barred from purchasing existing properties, demand is expected to shift toward off-the-plan apartments, townhouses, and newly built homes . This may boost construction activity as developers seek to attract overseas investors who still wish to invest in the Australian market. 2. Increased Housing Supply for Local Buyers By restricting foreign demand for established homes, the policy aims to increase availability for Australian residents , potentially slowing the rapid rise in housing prices. 3. Potential Slowdown in the High-End Market Many foreign investors target luxury properties in prime locations . The ban could lead to a slowdown in demand for high-end real estate, particularly in Sydney and Melbourne. 4. Challenges for Temporary Residents Those on work or student visas who plan to settle in Australia may face challenges securing housing, as they will no longer be able to purchase existing homes. This could lead to increased demand in the rental market. Housing Minister Clare O’Neil says ‘there is no silver bullet’ for the housing crisis. Picture: NewsWire / Martin Ollman The Australian government has committed additional funding to the Australian Taxation Office (ATO)  to enforce compliance with the ban. Monitoring will focus on tracking property transactions and ensuring that foreign buyers adhere to the new rules. Penalties and forced divestment may apply to those found in violation of the restrictions. While the policy is strict, certain exemptions apply , particularly for large-scale developments that contribute to increasing the overall housing stock. Foreign investors may still be allowed to invest in projects that involve the construction of more than 20 new residential dwellings . This incentive is designed to encourage housing development and urban expansion  rather than speculative investment in established properties. The Albanese government has pledged to build 1.2 million new homes. Picture: NewsWire / Flavio Brancaleone Australia’s two-year ban on foreign purchases of existing homes marks a significant shift in the country’s real estate policy. While the government aims to improve housing affordability and boost local homeownership , the policy could also lead to unintended consequences, such as higher rental demand and shifts in foreign investment patterns . Whether this initiative will have a long-term positive effect on the housing market remains to be seen, but it is a clear signal of the government’s commitment to prioritizing Australian buyers over foreign investors. References 1. Reuters. “Australia to put two-year ban on foreigners buying existing homes amid housing crunch.”   Link 2. News.com.au . “Labor pitches two-year ban on foreign property investors.”   Link 3. The Australian. “Foreign housing investors face two-year ban on established home purchases.”   Link Disclaimer This article is for informational purposes only and does not constitute financial or legal advice. Readers should seek professional consultation before making any real estate investment decisions. The information provided is based on publicly available sources as of February 2025 and may be subject to change.

Selling your home is a major milestone, but the process doesn’t end once you’ve accepted an offer. There are still important steps to complete before the sale is finalized. Understanding these steps will help you navigate the transition smoothly and avoid unexpected surprises. From contract exchange to settlement, tax implications, and deciding when to buy your next home , here’s everything you need to know about what happens after selling a house. Most home sales take between 30 to 90 days to settle , depending on the contract terms and the buyer’s financing. 1. Exchange of Contracts The exchange of contracts  is the first official step after an offer is accepted. This is when both the buyer and seller sign the contract of sale , making the agreement legally binding. Although the sale is confirmed at this stage, the process is not yet complete. At this point, the buyer also pays a deposit , usually 5-10% of the purchase price . This deposit is held in a trust account  (usually by the real estate agent or conveyancer) until settlement. If the sale occurred at auction, the deposit is typically paid immediately. If it was a private sale, it may take a few days. Once contracts are exchanged, the property is officially off the market , and the legal and financial processes begin. If applicable, the sale enters a cooling-off period  before settlement. Key Takeaways: • Both parties sign the contract , making the sale legally binding. • The buyer pays a deposit , usually 5-10% of the purchase price . • The property is officially taken off the market . • The process moves into either the cooling-off period (if applicable) or straight to settlement . 2. Cooling-Off Period (If Applicable) In some locations, buyers are given a cooling-off period  after signing the contract. This allows them time to reconsider their decision and withdraw if necessary. However, properties sold at auction usually do not have a cooling-off period —auction sales are typically final. If a buyer decides to back out during the cooling-off period, they may have to forfeit a portion of their deposit. The length of this period varies by country and region, but it usually lasts between 2 to 5 business days . For sellers, this period can feel like an uncertain waiting game. However, once the cooling-off period ends, the contract becomes unconditional , and both parties must proceed with the sale. Key Takeaways: • The cooling-off period varies  by location but is usually 2-5 business days . • Buyers can withdraw from the sale  but may forfeit part of their deposit . • Auction sales are final  and typically do not have a cooling-off period. • Once this period ends, the contract is unconditional , meaning the sale must proceed. The standard cooling-off period in Victoria is three days by default  (except for auction sales). 3. Settlement Period (30-90 Days) The settlement period  is the final stage before ownership of the property is legally transferred to the buyer. It usually lasts between 30 to 90 days , depending on the terms agreed upon in the contract. During this time, legal, financial, and administrative tasks are completed. Your conveyancer or solicitor  will handle paperwork, ensuring all legal requirements are met. They will also work with financial institutions to pay off any outstanding mortgage balance  and adjust property rates, taxes, and utilities. Meanwhile, the buyer’s bank will finalize their loan approvals. For sellers, this is the perfect time to plan the move —whether it’s into a new home, a rental, or another arrangement. Packing, hiring movers, and updating your address should be high on your to-do list. Key Takeaways: • The settlement period typically lasts 30-90 days  but can be negotiated. • Your conveyancer finalizes legal paperwork , including the title transfer. • Adjustments are made for property taxes, council rates, and utilities . • If you have a mortgage , your lender will arrange to discharge the loan . • This is the best time to start packing and organizing your move . Staging your home and making minor upgrades can increase its market value , helping you attract more buyers and achieve a higher sale price. 4. Should You Buy Your Next House Before Selling? A common dilemma for sellers is whether to sell their current home first and then buy  or buy first and then sell . Both options have pros and cons, and the best choice depends on your financial situation, market conditions, and personal needs . Option 1: Selling First and Buying Later Many homeowners prefer to sell their property first  before committing to a new home. This approach is safer financially because you know exactly how much money you have from the sale  before purchasing another property. ✅ Pros: • No risk of carrying two mortgages  at once. • You have a clear budget  for your next home. • Less pressure to sell quickly at a lower price . ❌ Cons: • You may need temporary housing  if you haven’t found a new home yet. • If property prices rise after you sell, buying may become more expensive . Real estate agent commissions and legal fees are typically deducted from the final sale proceeds , so sellers should factor in these costs when setting their price expectations. Option 2: Buying First and Selling Later Some sellers choose to buy their next home first  so they can move in immediately and avoid temporary housing. However, this option comes with financial risks, as you may need bridging finance  (a short-term loan) if your existing home doesn’t sell quickly. ✅ Pros: • No need to move twice  or rent a temporary place. • More time to find the perfect home without feeling rushed . ❌ Cons: • You may need bridging finance  (explained below). • If your current home doesn’t sell quickly, you could end up paying two mortgages . 5. What is Bridging Finance and When Do I Need It? Bridging finance is a short-term loan  designed to help homeowners buy a new property before selling their current one. It’s meant to “bridge the gap”  between buying and selling, preventing financial strain during the transition. How Does Bridging Finance Work? • Loan Term:  Usually lasts 6-12 months . • Repayments:  Often interest-only  during the bridging period. • Final Payment:  The loan is repaid once your existing home is sold. When is Bridging Finance a Good Option? ✅ If you’ve found your dream home  and don’t want to miss out. ✅ If you want to move straight into your new home  instead of renting. ✅ If you’re confident your current home will sell quickly . Potential Risks of Bridging Loans ❌ Higher interest rates  than standard home loans. ❌ If your old home takes longer to sell , interest costs can add up. ❌ You may feel pressured to sell quickly , which could result in a lower price. Before taking a bridging loan, it’s a good idea to speak with a financial advisor or lender  to understand the risks and costs. Before taking a bridging loan, it’s a good idea to speak with a financial advisor or lender to understand the risks and costs. Photo Source: Your Mortgage 6. Do I Have to Pay Tax If I Sell My House? One of the most important financial considerations when selling a home is tax implications . The main tax to be aware of is Capital Gains Tax (CGT) , which applies when you make a profit from selling a property. However, tax laws vary by country, and in many cases, primary residences are exempt  from CGT. Capital Gains Tax – Do You Have to Pay? • Primary Residence Exemption:  If your home was your main residence , you’re often exempt from CGT  in many countries, including the U.S., U.K., and Australia. • Investment Properties:  If you’re selling an investment property , you may be required to pay CGT on any profit made. • Time-Based Discounts:  In some countries, if you’ve owned the property for more than 12 months , you may qualify for a partial tax discount . How to Minimize Tax When Selling Property ✅ Keep records of renovation expenses , as they may reduce your taxable gain. ✅ If selling an investment property, consider timing the sale  in a year when your income is lower. ✅ Speak with a tax professional  to check if you qualify for CGT exemptions or reductions. Capital Gains Tax (CGT) does not apply if the property was your primary residence , but investment properties may be subject to taxation. Selling a home is a journey, and while it may seem overwhelming, having a clear roadmap makes it much easier. From signing contracts and settling legal matters to deciding on your next property purchase and understanding tax obligations, every step is crucial. If you’re planning to sell your home or need guidance on settlement, tax implications, or buying your next property , reach out to us Core Elite Real Estate Agents for expert advice. A smooth transition starts with being informed and prepared! References 1. Australian Taxation Office (ATO) – Capital Gains Tax (CGT) • https://www.ato.gov.au/General/Capital-gains-tax/ 2. MoneySmart – Bridging Finance (Glossary) • https://moneysmart.gov.au/glossary/bridging-finance 3. Consumer Affairs Victoria – Buying and Selling Property • https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property 4. NSW Fair Trading – Buying and Selling Property • https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property 5. Queensland Government – Buying Property in Queensland • https://www.qld.gov.au/housing/buying-owning-home/buying-property 6. Real Estate Institute of Australia (REIA) – Australian Real Estate Market & Guidelines • https://reia.asn.au/ 7. Mortgage Choice – Home Buying and Selling Guide • https://www.mortgagechoice.com.au/ Disclaimer This article is intended for informational purposes only  and does not constitute legal, financial, or tax advice. The information provided is based on general guidelines and publicly available resources, which may not be applicable to your specific situation. Laws, regulations, and financial policies regarding property sales, capital gains tax, and mortgage financing vary by region and may change over time. Before making any real estate, financial, or legal decisions, it is highly recommended that you consult with a licensed real estate professional, financial advisor, accountant, or legal expert  to ensure that you receive personalized advice tailored to your circumstances. Neither the author nor this platform is responsible for any decisions made based on the information provided in this article.

Victoria is currently facing an elevated bushfire threat due to extreme heat and prolonged dry conditions. The state is experiencing significant fire activity, particularly in the Grampians National Park , where two major fires—sparked by dry lightning—have burned over 18,000 hectares . These fires, intensified by record-breaking heatwaves and strong winds, highlight the growing risks of bushfires in the region. Beyond the immediate safety concerns, the increasing frequency and severity of bushfires have long-term implications for the property market , affecting buyer confidence, insurance premiums, and property values. Australia experiences some of the most intense and frequent bushfires in the world, with the fire season becoming longer due to climate change. Current Bushfire Situation in Victoria Victoria is experiencing one of its hottest summers , with the Bureau of Meteorology issuing extreme heatwave warnings  across the state. Melbourne is forecasted to reach 38°C , while regional areas are expected to experience even higher temperatures. These dry and hot conditions create an environment conducive to bushfires, posing challenges for firefighting efforts. The Country Fire Authority (CFA) and emergency services  are deploying significant resources to contain the current fires, particularly in bushfire-prone zones such as the Grampians and Western Victoria . The risk is further heightened by strong winds , which can cause embers to travel and ignite new fires. Residents in high-risk areas are advised to stay updated on evacuation alerts via the VicEmergency platform . Most Bushfire-Prone Areas in Victoria Certain regions in Victoria have historically been high-risk areas  for bushfires. These locations often feature dense vegetation, dry conditions, and challenging accessibility for firefighting efforts . Top Bushfire-Prone Areas in Victoria: 1. Grampians National Park & Western Victoria  – Frequently affected by lightning-ignited bushfires. 2. Dandenong Ranges  – A popular residential and tourist area with heavy forest cover, making evacuation difficult. 3. Yarra Ranges & Kinglake  – The region severely impacted during Black Saturday (2009)  with long recovery times. 4. Otway Ranges & Great Ocean Road Towns (e.g., Lorne, Wye River, Apollo Bay)  – Bushfires have regularly threatened tourism and local properties. 5. Gippsland (East Gippsland, Bairnsdale, Omeo, Mallacoota)  – One of the hardest-hit areas during the 2019-2020 Black Summer fires . 6. Macedon Ranges  – A region with a high fire risk due to its dry, forested environment. 7. Central Highlands & Ballarat Region  – Dry grassland areas with frequent seasonal bushfire activity. What This Means for Property Buyers and Investors For those looking to buy property in Victoria , it is crucial to consider the bushfire risks associated with specific locations. ✅ Recommended Low-Risk Areas for Buyers: • Melbourne CBD & Inner Suburbs (Carlton, Southbank, Richmond, Docklands)  – Less risk due to urban development. • Bayside Areas (Brighton, St Kilda, Williamstown)  – Coastal locations with lower bushfire risk. • Western Suburbs (Point Cook, Altona, Werribee)  – Areas with a mix of urban expansion and minimal dense vegetation. • Geelong & Bellarine Peninsula  – Offers a safer alternative to coastal bushfire-prone areas further along the Great Ocean Road. The 2019-2020 Black Summer bushfires burned over 18 million hectares of land, destroyed more than 3,500 homes, and killed an estimated three billion animals. Impacts of the Bushfire Threat on Property Markets 1. Property Values and Demand in Fire-Prone Areas • Declining demand in high-risk regions  – Buyers are becoming increasingly cautious when purchasing properties in fire-prone locations. This can lead to falling property prices  and longer selling periods  in these areas. • Insurance premiums increasing  – Home insurance in high-risk zones is becoming more expensive  or, in some cases, unavailable , discouraging buyers. • Difficulties securing financing  – Some lenders are implementing stricter requirements for mortgages in bushfire-prone regions . 2. Increasing Demand for Low-Risk and Resilient Areas • With the growing awareness of bushfire risks , buyers are looking for homes in urban areas and low-risk regions , pushing prices higher in safer locations . • Properties in coastal areas or CBD suburbs  are likely to become more attractive investment options , as these locations experience lower fire risks . Dry lightning strikes are a major cause of bushfires in Australia, particularly in remote and forested areas. Recommendations for Property Owners and Buyers 1. Assess Bushfire Risk Before Buying • Check if the property is in a Bushfire-Prone Area (BPA)  using the Victorian Government’s Planning Maps . • Look at historical fire data  to understand how frequently the area has been affected by fires. 2. Upgrade Homes for Fire Resistance • Retrofitting homes  with fire-resistant materials  and clearing surrounding vegetation  can significantly reduce fire damage risks. • Install bushfire-resistant shutters, ember guards, and fire-resistant roofing . 3. Ensure Adequate Insurance Coverage • Verify that the property’s home insurance policy covers bushfire damage . • Be aware that insurance premiums in fire-prone areas may be significantly higher. 4. Diversify Investment Strategies • Investors should balance portfolios  by considering properties in both urban and regional areas  to minimize climate-related risks. • Coastal and inner-city areas provide safer long-term property investments  compared to fire-prone rural locations. 5. Stay Updated on Government Policies • The Victorian Government is enhancing bushfire mitigation strategies , including controlled burns and emergency response plans . • Buyers should monitor zoning changes and fire safety regulations , which may affect long-term property values in fire-prone regions. Victoria and New South Wales are the most bushfire-prone states in Australia, regularly experiencing catastrophic fire events. Victoria’s bushfire crisis is becoming a long-term challenge  for residents, property owners, and investors. The increasing frequency and intensity of fires will continue to impact property markets , particularly in high-risk areas. While regional homes in bushfire-prone zones may see declining demand and rising insurance costs , urban and coastal areas  will likely become more desirable investment destinations . For property buyers and investors, understanding fire risks and making informed real estate decisions  will be key to long-term financial security . Whether upgrading existing properties for bushfire resilience  or choosing low-risk areas , adapting to climate-related challenges is essential for sustainable property ownership  in Victoria. References 1. Herald Sun – Grampians Residents Urged to Leave Now as Fires Spread https://www.heraldsun.com.au/news/victoria/grampians-residents-urged-to-leave-now-as-fires-spread/news-story/8a1691687c069bfd5d09de5a9411759b 2. News.com.au – Severe Heatwave Warning Issued for Millions of Aussies This Weekend https://www.news.com.au/technology/environment/severe-heatwave-warning-issued-for-millions-of-aussies-this-weekend/news-story/b9bf401fcaa42d458fe12383f92e4158 3. News.com.au – ‘Too Late to Leave’ Urgent Warning as Bushfires Rip Through Western Victoria https://www.news.com.au/national/weather/too-late-to-leave-urgent-warning-as-bushfires-rip-through-western-victoria/news-story/881e0d8867d1dd9833fe80ff4d3e68bb 4. CFA News & Media – Prepare Now Ahead of Heightened Bushfire Conditions https://news.cfa.vic.gov.au/news-media/latest-news 5. Victorian Government Planning – Bushfire Prone Area Maps https://www.planning.vic.gov.au/bushfire-protection Disclaimer This article is for informational purposes only and does not constitute financial, legal, or investment advice. The forecasts and analyses are based on current market trends and expert insights but are subject to change. Readers should conduct their own research and consult financial advisors or real estate professionals before making any property or investment decisions.

Interest Rate Forecasts from Australia’s Big Four Banks As Australia moves into 2025, the country’s economic landscape is shifting, and interest rate predictions are at the center of discussions. The Big Four banks—Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ—have revised their forecasts, anticipating rate cuts due to easing inflation and changing economic conditions. Interest rates might be cut in early 2025 as inflation continues to drop, with annual core inflation falling to 3.2% in November (below the RBA forecast of 3.4% for December). Commonwealth Bank of Australia (CBA) CBA anticipates that the Reserve Bank of Australia (RBA) will implement its first rate cut in February 2025 , followed by additional reductions throughout the year, bringing the cash rate down to 3.35% by December 2025 . This outlook is based on recent inflation data indicating a sharper-than-expected decline, suggesting that inflationary pressures are easing more rapidly than anticipated. Westpac Westpac has revised its initial forecast and now expects the first rate cut to occur in February 2025 , aligning with CBA’s projection. The bank foresees a total reduction of 100 basis points  over the year, resulting in a cash rate of 3.35% by year-end . This adjustment follows better-than-expected inflation figures, indicating a faster moderation in inflation. National Australia Bank (NAB) NAB now expects the first rate cut in February 2025 , with a gradual reduction in the cash rate over time. Unlike other major banks predicting a cash rate of 3.35% by the end of 2025 , NAB projects that the rate will fall more cautiously, reaching 3.10% by February 2026 . NAB’s Chief Economist, Alan Oster, has emphasized that while the February rate cut seems likely, the pace of subsequent cuts will be slower than initially expected. ANZ ANZ now anticipates two rate cuts in 2025 , with the first in February and the second in August . Unlike CBA and Westpac, ANZ expects a total reduction of 50 basis points , bringing the cash rate to 3.85% by December 2025  instead of 3.35%. ANZ’s Chief Economist, Adam Boyton, has stated that these cuts are intended to cautiously dial back the restrictiveness of monetary policy rather than signal an aggressive rate-cutting cycle. All four of the big four banks now agree the Reserve Bank will cut the official cash rate in February. Picture: Newswire Supporting Evidence for Rate Cuts The primary justification for these interest rate reductions stems from Australia’s latest inflation data. The trimmed mean inflation rate fell to 3.2% year-on-year in December 2024 , the lowest level since March 2021. The RBA’s forecast of 3.4% inflation was exceeded , demonstrating that inflation is cooling faster than expected. Market expectations have significantly shifted, with more than a 75% probability  that the RBA will cut rates by 25 basis points in its February 2025 meeting . Source from RBA Website The chart shows Australia’s inflation trends from 2014 to 2024, with the Consumer Price Index (CPI) and trimmed mean inflation peaking in 2022 and gradually declining, reaching 3.2% for the trimmed mean in December 2024. Source from RBA Potential Impacts on Victoria’s Property Market Victoria’s property market is experiencing a phase of uncertainty, influenced by various economic factors, including interest rates, tax policies, and investor confidence. The anticipated rate cuts could have significant implications for the housing sector. 1. Increased Buyer Demand Lower interest rates generally lead to increased borrowing capacity , making mortgages more affordable for homebuyers. If the RBA proceeds with its expected cuts, it could trigger renewed demand in the Victorian property market , particularly from first-time buyers and investors. 2. Potential Market Recovery Analysts predict that Melbourne’s housing market  could see 3.5% price growth in 2025 and 6% in 2026 , pushing the median house price near $1 million . If interest rates decline as forecasted, affordability may improve, driving increased property transactions. The chart compares median dwelling values with derived “affordable” purchase prices, showing that the current affordable purchase value is $512,639, with a forecasted increase to $593,344 if interest rates drop by 135 basis points. 3. Challenges Due to High State Debt and Taxes Despite more favorable borrowing conditions, Victoria’s high state debt and increased property taxes  continue to weigh on investor sentiment. Increased land taxes and stamp duties have led to a downturn in investor activity , potentially limiting the impact of lower interest rates. 4. Declining Auction Volumes Melbourne, traditionally Australia’s auction capital , has seen a sharp decline in auction volumes , with Sydney overtaking it in auction activity. Presently, only 14% of Victorian homeowners believe it is the right time to sell , compared to 22% in New South Wales . Lower interest rates could improve seller confidence, reversing this trend. 5. Shift Towards Owner-Occupiers Victoria’s property market is shifting towards owner-occupiers , as more investment properties are sold , and renters transition into homeownership. Falling mortgage rates could make buying more attractive, further boosting demand for homes. 6. Rental Market Pressures A decline in investor participation has contributed to a constrained rental property supply , leading to rising rents despite weak property sales. Lower interest rates could encourage investors to return to the market, potentially easing rental market pressures. Big Four Banks' forecast in one photo. Source from RateCity Australia’s Big Four banks have updated their forecasts, anticipating rate cuts beginning in February 2025 , driven by rapidly cooling inflation. However, while CBA and Westpac expect a cash rate of 3.35% by the end of 2025 , NAB projects a slower decline to 3.10% by early 2026 , and ANZ anticipates a more moderate reduction to 3.85% by December 2025 . If realized, these reductions could rejuvenate Victoria’s property market by boosting buyer confidence, increasing sales activity, and supporting gradual price appreciation . However, challenges such as high property taxes, investor uncertainty, and market fluctuations  will continue to influence the sector’s trajectory. For property buyers, sellers, and investors, staying informed on economic developments and RBA decisions remains crucial in navigating the evolving real estate landscape in Victoria . References 1. ANZ Institutional Report – Interest Rate Forecast https://www.anz.com/institutional/insights/articles/2025-01/anz-shifts-aus-rate-call-to-feb 2. NAB Official Forecast – Rate Cuts and Economic Outlook https://news.nab.com.au/news/nab-forecasts-february-rate-cut-cutting-phase-to-be-gradual 3. News.com.au – Economic Case for February Rate Cut https://www.news.com.au/finance/economy/interest-rates/australias-inflation-rate-falls-beating-rba-expectation 4. CoreLogic – 2025 Housing Market Trends https://www.corelogic.com.au/news-research/news/2025/whatsshaking-up-the-housing-market-in-2025 5. Property Update – Melbourne Property Investment Insights https://propertyupdate.com.au/property-investment-melbourne/ Disclaimer This article is for informational purposes only and does not constitute financial, legal, or investment advice. The forecasts and analyses are based on current market trends and expert insights but are subject to change. Readers should conduct their own research and consult financial advisors or real estate professionals before making any property or investment decisions.

Selling a property is a significant decision that involves multiple key aspects, such as choosing the right sales method, assessing market value, understanding transaction costs and tax obligations, working with a real estate agent, preparing your property for sale, and handling contracts and legal requirements. For many sellers, the complexity of the process can bring uncertainty and challenges, making it essential to have clear industry insights and practical guidance. This FAQ guide is designed to provide you with comprehensive professional advice to help you navigate the selling process smoothly. Covering everything from fundamental knowledge to specific steps, our guide addresses common questions you may encounter and offers clear answers and practical solutions. Whether you are a first-time seller or an experienced homeowner, we hope this guide will support your decision-making and make your selling journey more transparent, efficient, and successful. 1. Understanding the Selling Process What are the different methods of selling a property? ​ The three most common methods of selling a property in Australia are: Private Treaty (Private Sale):  You set an asking price, and buyers negotiate with you or your agent. Auction:  A public bidding process where the highest bidder (if above the reserve price) secures the property. Expressions of Interest (EOI) or Tender:  Buyers submit offers by a set date, and the vendor selects the best offer.   How do I sell my property at auction? Choose a real estate agent and sign an auction agency agreement. Set a reserve price (the minimum amount you are willing to accept). Prepare the property and market it before auction day. On auction day, if bidding meets or exceeds the reserve price, the highest bidder wins. The winning buyer signs the contract and pays a deposit immediately. ​ What is a sales agency agreement? ​ A  sales agency agreement  is a contract between you and a real estate agent that gives them the right to market and sell your property. It specifies: The agent’s commission and fees . The agreed-upon sale method (private sale, auction, etc.). The duration of the agreement. ​ Can I sell my house without an agent in Victoria? ​ Yes , this is called  For Sale By Owner (FSBO) . However, you will still need to: Conduct your own marketing. Arrange legal contracts and disclosures. Negotiate with buyers directly. Manage the settlement process. ​ How long does it typically take to sell a house? ​ It depends on market conditions, location, and pricing . On average: A well-priced home in a good market can sell in  30–60 days . Properties in slow markets may take  3–6 months or longer . Auction is one of the most popular property selling methods, especially during a hot market. 2. Costs, Fees & Financial Considerations How much will it cost to sell my property?   The costs of selling typically include: Agent commission :  1.5%–3% of the sale price. Marketing costs :  $2,000–$10,000 (advertising, photography, staging). Legal fees :  $800–$2,500 (conveyancing, contracts). Auctioneer fees :  $400–$1,000 (if selling at auction). Home preparation costs:  Varies (repairs, painting, cleaning). ​ What are the tax implications of selling my property? Capital Gains Tax (CGT):  If it’s an investment property , you may need to pay CGT on the profit. Exemptions:  If the property was your primary residence , you may be exempt from CGT. 3. Choosing & Working with a Real Estate Agent How do I know I can trust my real estate agent? Check their license and credentials. Read client reviews and testimonials. Ensure they provide a clear marketing strategy. What are the responsibilities of an estate agent to the seller? Pricing and marketing the property. Conducting inspections and negotiating offers. Managing contracts and legal paperwork. When selling your own house, choosing the right agent can make the process much more efficient and effective. 4.Property Presentation & Inspections Why is decluttering important before an open house? Decluttering makes the home appear larger, cleaner, and more appealing to buyers.   Is a professional building inspection necessary before selling? It’s not mandatory, but having a pre-sale inspection can help identify issues early and prevent buyer negotiations on repairs. ​ 5. Legal & Contractual Aspects What does the contract process involve? The buyer makes an offer. The vendor accepts and signs the contract. The buyer pays a deposit. The settlement process begins. ​ What is a vendor’s statement (Section 32)? A legal document that discloses key property details, including title, zoning, and any legal restrictions. ​ What is the settlement period? The time between signing the contract and the buyer taking ownership ( usually 30–90 days ). ​ What is the cooling-off period? A period ( usually 3 days ) where the buyer can withdraw from the contract after signing. One of the most important preparations before selling your house, besides choosing the right agent, is hiring a good lawyer to review your legal documents. 6. Can I sell my property while it is currently leased? Yes, in Victoria, you can sell a property that is currently leased. The terms of the existing tenancy agreement will influence the sale process: ​ • Fixed-Term Lease: If your tenants are on a fixed-term lease, they have the right to remain in the property until the lease expires. The new owner will assume the role of landlord and must honor the existing lease terms.  You must provide tenants with at least 28 days’ written notice before put on selling. ​ ​ • Periodic Lease (Month-to-Month): If the lease is periodic, you must provide tenants with at least 60 days’ written notice to vacate if the property is sold and the buyer requires vacant possession.  7. What happens if my property doesn’t appraise for the agreed-upon sale price? If your property appraises for less than the agreed-upon sale price, several outcomes are possible: ​ • Renegotiation: The buyer may request to renegotiate the sale price based on the appraisal. ​ • Financing Challenges: I f the buyer’s financing is contingent on the appraisal, a lower appraisal may affect their ability to secure a loan, potentially jeopardizing the sale. ​ • Contractual Clauses: Review your contract for any clauses related to appraisal values, as they can dictate the next steps.   It’s advisable to consult with your real estate agent or legal advisor to navigate this situation effectively. 8.  My agent is recommending I invest in painting and improving the frontage. Is it worth spending money before selling? Investing in cosmetic improvements like painting and enhancing the property’s frontage can significantly boost its curb appeal , potentially leading to a h igher sale price and a quicker sale. First impressions are crucial; a well-maintained exterior can attract more buyers . However, it’s essential to balance the cost of these improvements against the expected return. Consult with us  to determine which enhancements will provide the best return on investment in your local market. 9. My buyer wants to conduct a pre-settlement inspection even though they’ve already visited the property. Should I agree? Yes , it’s standard practice for buyers to conduct a pre-settlement (or final) inspection . This inspection ensures that the property is in the same condition as when the sale contract was signed and that any agreed-upon repairs have been completed. Accommodating this request demonstrates good faith and can help prevent potential disputes at settlement. When selling a house, the first impression it gives to buyers is crucial, as it determines both the price and the speed of the sale. 10. What are vendor and co-owner bids? In Victoria, during property auctions, certain bidding practices are regulated: ​ • Vendor Bids: These are bids made by the auctioneer on behalf of the seller to encourage bidding momentum. The auctioneer must announce when a bid is a vendor bid.  ​ • Co-Owner Bids: If a property is jointly owned, one or more of the owners who genuinely wish to purchase the property can bid during the auction. Co-owners may bid themselves or through a representative but cannot bid through the auctioneer.  11. What are conditional offers, and how do they work? A conditional offer is a purchase offer that includes specific conditions that must be met for the sale to proceed. Common conditions include: ​ • Subject to Finance: The buyer’s offer is contingent upon securing suitable financing. If they cannot obtain a loan, they can withdraw from the contract without penalty. ​ • Subject to Sale: The buyer’s offer depends on selling their current property. If they don’t sell it within an agreed timeframe, they can exit the contract. ​ • Subject to Building Inspection: The offer is conditional upon a satisfactory building inspection. If significant issues are discovered, the buyer can negotiate repairs, a price reduction, or withdraw from the sale. ​ These conditions protect buyers from unforeseen issues and provide an exit strategy if specific requirements aren’t met. 12. Is now the right time to sell my property? Market conditions can vary based on numerous factors , including location , economic climate , and seasonal trends . As of January 2025, Melbourne has experienced a decrease in auction volumes compared to previous years, which may indicate shifting market dynamics .  It’s essential to consult with us who can provide insights into current market conditions in your area and help determine the optimal time to sell. A good property is always in high demand, regardless of the time period. 13. How can I add value to my property before selling? To enhance your property’s value before selling, consider the following: ​ • Cosmetic Upgrades: Fresh paint, modern fixtures, and updated flooring can make the property more appealing. ​ • Curb Appeal: Landscaping, clean exteriors, and an inviting entrance can create a positive first impression. ​ • Minor Repairs: Fix leaky faucets, broken tiles, or any visible wear and tear to present a well-maintained home. ​ • Declutter and Stage: A tidy, well-staged home allows buyers to envision themselves in the space.   Focus on improvements that offer a good return on investment and appeal to a broad range of buyers. 14.  Is it worth upgrading my home before putting it on the market? Upgrading your home can increase its market value , but it’s crucial to consider the c ost versus the potential return . Not all upgrades yield a high return on investment. It’s advisable to consult with us  to identify which upgrades are most likely to enhance your property’s value in your specific market. Get a FREE property appraisal report from Core Elite Real Estate ! Our expert team will provide you with an in-depth market analysis and personalized recommendations to maximize your property’s value. Selling a property involves several key steps, from choosing the right sales method and understanding costs and taxes to working with a real estate agent, preparing your home for sale, and handling contracts and legal requirements. This FAQ guide provides expert insights on the selling process, market strategies, legal obligations, and transaction details to help you achieve a smooth and profitable sale. Whether you’re a first-time seller or experienced in the market, our guide offers practical information to make your transaction more transparent, efficient, and successful. Disclaimer This “Selling Property – Frequently Asked Questions (FAQs)”  guide is intended to provide general real estate knowledge and information to help sellers better understand the property transaction process. However, the content provided in this document is for reference purposes only and does not constitute legal, financial, or professional real estate advice. The real estate market is influenced by various factors, including but not limited to economic conditions, policies and regulations, and market demand, which means information may change over time. We strongly recommend consulting with a professional real estate agent, lawyer, accountant, or relevant expert before making any real estate transaction decisions to receive personalized advice tailored to your specific circumstances. Our company assumes no responsibility for any direct or indirect losses arising from the use or reliance on the contents of this document, including but not limited to financial losses, legal disputes, or transaction failures. If you have any concerns or require further assistance, please seek professional advice.

Australia’s residential construction sector is experiencing a renewed increase in costs, marking a significant development after a period of slower growth. According to CoreLogic’s Cordell Construction Cost Index (CCCI) , construction costs rose by 1% during the September 2024 quarter , doubling the 0.5% growth recorded in the previous quarter. This is the most substantial quarterly rise since December 2022, reflecting the growing pressures in the construction industry. Current Trends in Construction Costs The annual growth in construction costs has also accelerated, rising by 3.2% over the 12 months leading up to September 2024 , compared to a 2.6% increase recorded earlier in the year. While this remains below the 4% growth recorded in 2023, it highlights ongoing challenges for the sector. Regionally, Victoria experienced the fastest quarterly growth  at 1.1% , although its annual increase eased to 2.9% , marking the lowest growth rate since 2016. Other regions also saw cost escalations, fueled by a combination of rising material prices, supply chain disruptions, and persistent labor shortages. CoreLogic Economist Kaytlin Ezzy said the latest data represents another challenge for an industry that is already struggling. Source from CoreLogic Challenges for the National Housing Accord The rising construction costs present significant challenges for the Australian government’s National Housing Accord , which aims to deliver 1.2 million new homes by 2029 . • In the first quarter of the initiative, only 44,884 homes were completed , falling short of the 60,000-home quarterly target  by more than 15,000 homes. • Projections suggest that, without reforms, Australia could fall short of its housing target by 350,000 homes  by 2029. Experts point to labor shortages, increased material costs, and planning delays as key contributors to this shortfall. These issues not only slow down housing development but also exacerbate housing affordability problems across the country. Dwelling Completions compared to housing targets Source: Australian Bureau of Statistics Key Drivers of Cost Increases 1. Material Prices : The cost of essential construction materials remains elevated, contributing to higher overall project costs. 2. Labor Shortages : The construction sector faces a critical shortage of skilled workers, with projections indicating a need for 500,000 additional workers by 2029  to meet demand. 3. Supply Chain Disruptions : Global supply chain challenges continue to impact the timely delivery of materials, further inflating costs. Targets based on a share of population Source: Australian Bureau of Statistics Government Response and Solutions The Australian government has introduced several initiatives to address these challenges, including: • Cash Incentives for Apprentices : A $10,000 cash bonus  for construction apprentices has been announced to attract more workers into the industry and alleviate the labor shortage. • Regulatory Reforms : Streamlining planning approvals and reducing red tape to accelerate housing construction timelines. • Support for Affordable Housing : Encouraging developers to invest in affordable housing projects through targeted incentives and subsidies. Despite these measures, the challenges posed by rising costs and labor shortages require continued collaboration between the government, industry stakeholders, and the construction sector. Across the states, Queensland once again recorded the largest quarterly increase in construction costs (1.2%). Implications for the Housing Market The combination of rising construction costs and labor shortages has significant implications for Australia’s housing market: • Affordable Housing Crisis : Higher construction costs make it difficult to deliver affordable housing, worsening the housing affordability issue. • Delayed Developments : Rising costs and workforce shortages lead to extended project timelines, delaying much-needed housing supply. • Investor Concerns : Developers face reduced profit margins, which may discourage further investment in large-scale projects. While the rate of annual construction cost growth remains below the peaks seen during the pandemic, the recent uptick underscores the persistent challenges facing the industry. Addressing these issues will be essential to meet Australia’s housing supply targets and ensure housing affordability for future generations. Collaborative efforts between policymakers, industry leaders, and the construction sector are critical to overcoming these obstacles. By focusing on long-term solutions, such as workforce training, improved supply chains, and regulatory efficiency, Australia can pave the way for a more sustainable and affordable housing market. References 1. CoreLogic CCCI: Residential Construction Costs Pick Up Pace 2. The Guardian: Calls for Skilled Migration Overhaul 3. Reuters: Cash Incentives for Apprentices 4. Herald Sun: Australia’s Home-Building Targets Face Challenges 5. ABS Producer Price Index: Producer Price Indexes, Australia Disclaimer This article is intended for informational purposes only and does not constitute professional advice. The data presented here is based on publicly available information as of January 2025. Construction costs and housing trends are subject to change, and readers are encouraged to consult industry professionals or official sources for the most up-to-date information.

Why Australia Appeals to International Investors Australia appeals to International investors with its resilient property market, which has shown consistent growth,  averaging a 6.8% annual increase over 25 years . The country offers diverse investment opportunities, including new dwellings, vacant land, and build-to-rent projects, though foreign buyers must navigate  FIRB regulations ,  taxes , and  fees .  High rental demand , supported by  population growth  and  urbanization , ensures reliable returns, while features like capital growth, negative gearing, and market transparency enhance its  attractiveness . Despite regulatory costs, Australia remains a secure,  long-term investment destination . Australia’s real estate market demonstrates strong growth and resilience, making it highly attractive to international investors. The Australian Property Market: 25 Years of Resilience and Growth Over the last  25 years , the Australian property market has demonstrated remarkable resilience, with median  house values rising by 412% , equating to an average annual growth rate of  6.8% . This consistent upward trend has made property investment a cornerstone of wealth creation for many Australians, with the median home value increasing by nearly $460,000 since 1993. This performance is driven by strong demand, population growth, and Australia’s robust economic fundamentals. Even during global financial disruptions, the property market has showcased its stability, making it an attractive asset for  long-term investors .   However, the journey hasn’t been without its fluctuations. The market has occasionally experienced short-term corrections, such as the  11.1% drop  in Sydney property prices between  2017 and 2018 , driven by stricter credit policies and declining foreign investment. Despite these dips, the market has rebounded strongly, with long-term growth reflecting Australia’s robust economic resilience. Over a  30-year span , dwelling values have  increased by 382% , underpinned by steady population growth, urbanization, and favorable policy environments.   The Australian property market’s consistent performance continues to attract both local and international investors. Its blend of high capital appreciation, reliable rental income, and economic stability ensures it remains a top choice for long-term investment. Whether navigating short-term challenges or riding the wave of consistent growth, Australia’s property market offers opportunities that stand the test of time. • Median house values have increased by 412%  over 25 years, averaging 6.8% annual growth . • The market remains stable despite global financial disruptions. • Even during short-term corrections, strong rebounds reflect economic resilience. Although property prices may show little fluctuation in the short term, Australian investment properties are considered low-risk and steadily appreciate in value over the long term. Types of Properties International Investors Can Purchase Foreign investors purchasing residential real estate in Australia face a  one-time stamp duty surcharge , in addition to the  standard local stamp duty  applicable to all buyers.  The Foreign Purchaser Additional Duty (FPAD)  ranges from  7% to 8%  on the property value in states such as Victoria, New South Wales, Queensland, South Australia, Western Australia, and Tasmania. For example, in Victoria, the standard stamp duty on a $1 million property is approximately  5.5% ($55,000) , and the foreign purchaser surcharge adds  8% ($80,000) . This brings the  total stamp duty payable to $135,000 for foreign investors . The surcharge ensures that foreign buyers contribute to public infrastructure and services. States like the Australian Capital Territory (ACT) and Northern Territory do not impose foreign buyer surcharges but still require payment of standard stamp duty.   Exemptions or concessions are rare and generally limited to specific visa holders or permanent residents. For instance, first-home buyer concessions typically do not apply to foreign investors. The combined impact of the local and foreign stamp duties significantly increases the upfront cost of property purchases for foreign buyers, making it essential for investors to carefully factor these costs into their investment plans. Seeking advice from legal and financial experts is strongly recommended to understand obligations and manage the financial implications effectively.   Additionally,  annual land tax surcharges  apply in certain states; A  vacancy tax  may also be levied if residential properties remain unoccupied for more than six months in a calendar year. Upon selling the property, foreign investors are liable for  Capital Gains Tax (CGT)  on any profits, without access to the 50% CGT discount available to residents. Notably, as of  January 1, 2025 , the  Foreign Resident Capital Gains Withholding (FRCGW) rate  has increased from  12.5% to 15% , and the previous $750,000 threshold has been removed, making the withholding applicable to all property sales regardless of value.  • New Dwellings : Highly accessible, boosting housing supply. • Vacant Land : Purchasable if construction begins within four years. • Established Dwellings : Available under restrictions, such as for redevelopment or for temporary residents. • Encouraged investments include build-to-rent projects offering tax incentives. The value of standalone houses typically appreciates slightly faster than townhouses, although the difference is minimal. Apartments, however, appreciate much slower than standalone houses and townhouses. Special Conditions & Foreign Investment Review Board (FIRB) Regulations       • Company Purchases:  Foreign-controlled companies can buy established dwellings to house staff in Australia, subject to FIRB approval.       • Case-by-Case Reviews:  Each purchase is reviewed to ensure compliance with FIRB regulations, and approval is not guaranteed.   By focusing on new or underdeveloped properties, international investors can tap into Australia’s thriving real estate market while aligning with government policies designed to support housing availability. It’s essential to understand these guidelines and seek professional advice to ensure a smooth and compliant transaction. Foreign investors are required to apply to the Foreign Investment Review Board (FIRB) before purchasing residential real estate in Australia.    The FIRB (Foreign Investment Review Board) application fees for land acquisitions in Australia vary depending on the type of land and the value of the consideration. For residential land involving established dwellings, fees start at $44,100 for acquisitions valued at $1 million or less and increase in tiers of $1 million, reaching a maximum of $3,514,800 for properties exceeding $40 million. For residential land without established dwellings, fees start lower at $14,700 for acquisitions up to $1 million, also increasing in $1 million tiers, with a maximum cap of $1,171,600 for properties over $40 million. Application fees for acquisitions in new or near new residential dwellings or vacant residential land from 1 July 2024 to 30 June 2025 . FIRB fee can go up to as high as $1,171,600 Taxes Involved in Foreign Ownership of Real Estate in Australia Foreign investors purchasing residential real estate in Australia face a  one-time stamp duty surcharge , in addition to the  standard local stamp duty  applicable to all buyers.  The Foreign Purchaser Additional Duty (FPAD)  ranges from  7% to 8%  on the property value in states such as Victoria, New South Wales, Queensland, South Australia, Western Australia, and Tasmania. For example, in Victoria, the standard stamp duty on a $1 million property is approximately  5.5% ($55,000) , and the foreign purchaser surcharge adds  8% ($80,000) . This brings the  total stamp duty payable to $135,000 for foreign investors . The surcharge ensures that foreign buyers contribute to public infrastructure and services. States like the Australian Capital Territory (ACT) and Northern Territory do not impose foreign buyer surcharges but still require payment of standard stamp duty.   Exemptions or concessions are rare and generally limited to specific visa holders or permanent residents. For instance, first-home buyer concessions typically do not apply to foreign investors. The combined impact of the local and foreign stamp duties significantly increases the upfront cost of property purchases for foreign buyers, making it essential for investors to carefully factor these costs into their investment plans. Seeking advice from legal and financial experts is strongly recommended to understand obligations and manage the financial implications effectively.   Additionally,  annual land tax surcharges  apply in certain states; A  vacancy tax  may also be levied if residential properties remain unoccupied for more than six months in a calendar year. Upon selling the property, foreign investors are liable for  Capital Gains Tax (CGT)  on any profits, without access to the 50% CGT discount available to residents. Notably, as of  January 1, 2025 , the  Foreign Resident Capital Gains Withholding (FRCGW) rate  has increased from  12.5% to 15% , and the previous $750,000 threshold has been removed, making the withholding applicable to all property sales regardless of value.  · • FIRB regulates property purchases by international buyers. Taxes include: • Stamp duty surcharge of 7-8%  in many states. • Capital Gains Tax (CGT) on property sales without the resident’s 50% discount . • Land tax surcharges in some states. • FIRB application fees vary based on property value and type, starting at $14,700 for residential land under $1 million . In Victoria, foreign buyers are required to pay a total stamp duty of 13.5% of the property price (under normal circumstances). The Vacant Residential Land Tax (VRLT) The Vacant Residential Land Tax (VRLT)  in Victoria is a targeted initiative introduced by the Australian government to encourage property investors to rent out vacant properties and help address the ongoing housing shortage. This tax applies to residential properties in certain metropolitan areas that remain unoccupied for more than six months within a calendar year. The tax is calculated as  1% of the property’s total taxable value  and is designed to discourage property owners from leaving homes vacant, especially in areas where housing demand is high.   The VRLT is a response to Australia’s critical housing shortage, which has resulted in rising rents and reduced availability of affordable homes. By penalizing property owners for holding on to vacant properties, the government aims to increase the supply of rental housing in the market. This policy effectively incentivizes property owners to either occupy or lease out their properties, thereby helping to alleviate rental market pressure. The broader goal of the tax is to optimize the use of existing housing stock, reduce speculative holding of properties, and improve housing availability for residents. The government’s firm stance on this issue reflects its commitment to addressing housing affordability challenges while ensuring that property investments contribute to the wider community’s needs.   The  Vacancy Fee  in Australia can be waived if the property is used as the  primary residence  by the owner or their immediate relatives for more than six months in a calendar year. This exemption ensures the tax targets unused properties held for speculative purposes rather than those genuinely occupied. Owners must provide evidence, such as utility bills or tax records, to prove the property is a principal dwelling. The exemption also extends to immediate family members, such as parents or children, living in the property. This policy balances the government’s goal of increasing housing availability with fairness for actively used properties. Before purchasing real estate in Australia, foreign investors must thoroughly understand the costs associated with land tax. Australia’s Residential Real Estate Market is Suited for Long-Term Investors Australia’s residential real estate market is a strong choice for long-term investors due to its consistent capital appreciation and stable economic framework. Property values have historically increased by an average of 5% annually, driven by high demand and limited supply. This growth is further supported by the country’s robust population expansion, fueled by skilled migration and international students, particularly in cities like Sydney, Melbourne, and Brisbane. The steady demand ensures both rental stability and long-term property value increases, making it a reliable investment option.   Investors also benefit from Australia’s favorable tax policies, including  negative gearing , which allows them to  deduct property-related expenses from taxable income , and depreciation benefits that enhance overall returns. The market’s  low-risk profile , backed by strict regulations, clear property ownership laws, and a resilient financial system, attracts both domestic and international investors. Moreover,  high rental yields  in metropolitan and regional areas offer dependable cash flow, while ongoing urbanization and infrastructure projects continue to boost property values.   Additionally, Australian real estate serves as a tangible asset, providing  security against inflation  and diversifying investment portfolios. The government’s commitment to housing development and the global appeal of Australia as a stable and transparent market make it particularly attractive. With its mix of consistent growth, tax advantages, and economic stability, the Australian residential real estate market offers significant opportunities for wealth accumulation over the long term. • Properties in Australia offer 5% annual capital growth  and stable rental income. • Tax benefits like negative gearing and depreciation deductions enhance returns. • Transparency, low risk, and high rental yields make the market attractive. Australia’s real estate market offers unparalleled opportunities for long-term growth and stability, driven by consistent capital appreciation, a robust economy, and transparent regulations. With diverse property types available to international investors and favorable tax policies, the market remains a reliable and attractive investment destination. While navigating regulations and taxes is essential, Australia’s commitment to housing development and economic resilience ensures it continues to be a top choice for global investors seeking wealth accumulation and portfolio diversification. References 1. Foreign Investment Review Board (FIRB) Official website: FIRB Explains regulations and processes for foreign buyers. 2. CoreLogic Property Market Insights Reliable data source for market trends and growth rates. 3. Australian Taxation Office (ATO) Official website: ATO Details on tax implications, including capital gains tax and negative gearing. 4. State Revenue Offices Information on state-specific stamp duties and surcharges. Examples: • Victoria: SRO Victoria • NSW: Revenue NSW Disclaimer The information provided in this document is for general informational purposes only and does not constitute financial, legal, or investment advice. While efforts have been made to ensure accuracy, readers should consult qualified professionals for advice tailored to their individual circumstances. Real estate markets, laws, and tax policies can vary by region and are subject to change without notice. The references provided are for informational purposes and do not imply endorsement of any specific entity or organization. Always verify details with official sources before making investment decisions.

As we move through the final quarter of 2024, Melbourne’s property market reveals fascinating trends in both demand and supply. With record-high listings and evolving buyer behavior, the market is entering a phase of recalibration. Let’s dive into the details and understand what these trends mean for buyers, investors, and the overall market outlook. 1. Supply Trends: Record-High Listings One of the most striking developments in Melbourne’s property market is the surge in property listings. • Highest in 12 Years : In September and October 2024, Melbourne experienced a 16% year-on-year increase in new listings , marking the highest level since 2012. • Reasons Behind the Supply Surge : • Many landlords and property owners are exiting the market due to higher land taxes  and rising interest rates , which have increased their financial burdens. • A significant number of holiday homes  are being sold, as owners face financial challenges. • Impact on Buyers : This rise in listings has provided buyers with more options, reducing the urgency to purchase and increasing their negotiation power. For those looking to enter the market, this presents a rare opportunity to secure properties without intense competition. 2. Demand Trends: Steady and Sector-Specific While supply is on the rise, demand remains robust in certain market segments. • Build-to-Rent Sector Booming : The build-to-rent model  is gaining traction, driven by two key factors: • First-home buyers delaying purchases  due to high interest rates, opting to rent longer instead. • An increasing number of downsizers  moving into rental properties for convenience. • Developers are ramping up their investments in this sector to cater to growing rental demand. • Price “Reset” Offers New Opportunities : Property prices in Melbourne are stabilizing, marking a slower but steadier phase of growth. This “reset” allows first-home buyers to find more accessible entry points into the market. • Demand in Family-Friendly Suburbs : Areas with ready-to-move-in family homes are experiencing a supply shortage, keeping demand strong in these locations. 3. Balancing Act: Supply Meets Demand The interplay between high supply and steady demand is shaping Melbourne’s real estate landscape: • Buyer’s Market : The influx of new listings has created a more favorable environment for buyers, giving them leverage in negotiations. • Steady Rental Demand : Despite the cooling sales market, the rental market remains resilient, fueled by Melbourne’s growing population and limited rental property supply in certain areas. 4. Market Outlook for 2024 and Beyond Experts predict that Melbourne’s property market will continue to stabilize while maintaining steady growth: • Migration Boost : Increasing migration to Melbourne will drive demand for both rental and purchase properties, particularly in family-friendly suburbs. • Continued Build-to-Rent Expansion : With rental demand growing, the build-to-rent model will remain a focal point for developers and investors. • Opportunities for Buyers : The current surge in supply creates a unique opportunity for buyers to secure properties at competitive prices, particularly as price growth remains moderate. Conclusion Melbourne’s property market is undergoing a transitional phase. The surge in listings has tilted the balance slightly in favor of buyers, while demand, especially in the rental sector, continues to underpin market activity. For first-home buyers and investors, this recalibration offers opportunities to secure properties in a less heated market environment. Meanwhile, long-term trends like migration and infrastructure development promise sustained demand in key areas. Whether you’re a buyer, investor, or developer, understanding these dynamics is essential for making informed decisions in Melbourne’s evolving property market. References 1. Melbourne homes for sale hit whopping 12-year high 2. Unexpected bargain postcodes revealed 3. ‘Reset’: Major bank flags big change ahead for homebuyers 4. Build-to-rent sector fires up 5. 2024 Market Predictions Disclaimer This article provides general information and does not constitute financial, legal, or investment advice. Figures and trends mentioned are based on current data and are subject to change. Please consult with qualified professionals or refer to authoritative sources, such as CoreLogic or the Australian Bureau of Statistics, for specific advice. Core Elite Real Estate is not responsible for decisions made based on this content.

Are you considering purchasing an off-the-plan property in Victoria? If so, the Victorian Government’s temporary off-the-plan duty concession , introduced on October 21, 2024 , might be the perfect opportunity to make your property dreams a reality. This initiative not only aims to enhance housing affordability but also supports the real estate and construction sectors. Let’s dive into what this concession entails, answer common questions, and explore its potential impact on the market. What Is the Temporary Off-the-Plan Duty Concession? This concession is designed to reduce the stamp duty payable on eligible off-the-plan properties, making them more affordable for buyers. The key features include: • Eligibility:  Available to all buyers—including investors, companies, and trusts—of off-the-plan apartments and townhouses within strata subdivisions. • No Price Cap:  Unlike previous concessions, there is no limit on the property value to qualify. • Dutiable Value Calculation:  Buyers can subtract construction costs incurred post-contract signing from the purchase price to calculate the dutiable value. For example, if you purchase a property for $1 million, with $400,000 attributed to future construction costs, your stamp duty will only apply to the remaining $600,000. Q&A: Frequently Asked Questions 1. Who Can Apply for the Concession? All purchasers, including foreign buyers, are eligible. However, the Foreign Purchaser Additional Duty (FPAD)  applies to the property’s full value before the concession is calculated. 2. What Types of Properties Qualify? Eligible properties include apartments and townhouses with common property areas. House-and-land packages are excluded unless part of a strata subdivision. 3. Is This Concession in Addition to Other Benefits? Yes! First-home buyers and owner-occupiers can choose between this concession or existing schemes to maximize their savings. 4. How Long Is the Concession Available? The concession applies to contracts signed between October 21, 2024 , and October 20, 2025 . 5. How Can I Apply? Applications are typically managed by your conveyancer, solicitor, or financial institution through Duties Online. 6. Why Is This Concession Introduced? It’s part of a government initiative to stimulate housing construction, improve affordability, and support economic growth. Impact on the Real Estate Industry 1. Boosting Housing Supply The concession is expected to encourage developers to launch more off-the-plan projects, increasing the availability of apartments and townhouses across Victoria. 2. Improving Affordability By lowering upfront costs, the policy makes off-the-plan properties more accessible to a wider range of buyers, including first-time investors. 3. Supporting Market Stability With Melbourne experiencing a surge in property listings, this initiative may help stabilize demand and attract more buyers. 4. Critics and Concerns While the policy is widely welcomed, critics point out that the lack of a price cap might disproportionately benefit wealthier buyers and high-end developments. Why It Matters This concession represents a significant step toward addressing Victoria’s housing affordability and supply issues. For buyers, it’s an opportunity to save thousands on stamp duty. For developers, it’s a chance to attract a broader market and fast-track projects. Whether you’re an investor, a first-home buyer, or simply curious about the market, this temporary concession could shape the real estate landscape in the coming year. The temporary off-the-plan duty concession  isn’t just a financial relief—it’s a chance to be part of Victoria’s evolving housing market. If you’re considering an off-the-plan property, this might be the perfect time to take the leap! Disclaimer This article provides general information and should not be considered professional financial, legal, or property advice. Eligibility, benefits, and figures related to the off-the-plan duty concession may vary and are subject to change. Please consult with qualified professionals or the State Revenue Office Victoria for specific advice. Core Elite Real Estate is not responsible for decisions made based on this content. References and Resources To learn more, visit the official State Revenue Office Victoria page  or consult your conveyancer. Additional insights: • Herald Sun: Impact of Stamp Duty Cuts • State Revenue Office Victoria FAQs