Search Results

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.

Australia’s property investment market in 2024 has presented a mix of growth and challenges, marked by evolving trends and regional differences. According to CoreLogic’s latest research, the interplay between investor buying and selling paints a complex picture, reflecting both opportunities and hurdles for property investors across the country. Here’s an in-depth look at the key insights: Rising Investor Demand Despite Challenges Despite concerns around high interest rates, tenancy reforms, and increasing property taxes, investor demand remains robust in many regions: • National Growth in Investor Loans : New investor loans grew by 18.8%  year-over-year as of September 2024, according to ABS data. This reflects strong investor interest, especially in high-growth states like Queensland, Western Australia, and South Australia , where capital growth opportunities are abundant. • Shift in Investor Profiles : The market is seeing fewer highly-leveraged investors, with more participation from first-home buyers turning to investment properties as a way to enter the market. While these loans remain a small portion (711 loans in September 2024), it indicates changing investor behaviors. Regional Investment Activity Differences Significant differences in investment activity across states reflect the unique characteristics of regional economies: • Victoria and Tasmania:  Investor listings are above historical averages, driven by low capital growth and rising costs, such as the reduction in Victoria’s land tax threshold. In Tasmania, falling property prices and high interest rates have led some investors to exit the market. • Queensland, South Australia, and Western Australia:  High capital growth and relatively affordable property prices have fueled growth in investment loans. However, listing volumes remain below average, indicating strong demand coupled with limited supply. Regional Variations in Investor Activity Investor activity varies significantly by state, highlighting regional economic differences: • Victoria and Tasmania : Investor listings are above historical averages, driven by lower capital growth and rising costs like reduced land tax thresholds in Victoria. In Tasmania, declining home values and high-interest rates have prompted some investors to exit. • Queensland, South Australia, and Western Australia : High capital growth and affordable property prices have fueled an influx of investor loans, but listings remain below average, signaling strong demand with limited supply. Investor Selling Trends While new investment loans are rising, investor property listings are also increasing, particularly in Victoria and New South Wales: • Investor Listings in 2024 : Listings inferred to be investment properties rose to 13,000 properties nationally  in October but remain below peak levels from 2021. However, Victoria accounted for 29% of national investor listings , reflecting the pressure from soft capital growth and rising holding costs. Changing Market Dynamics The evolving economic environment has reshaped the market in several ways: • Property Types : Investors are increasingly focusing on affordable properties with strong growth potential. The rising interest in smaller investment properties, such as apartments or units, indicates a shift towards cost-effective options. • Market Stability : While growth remains strong in certain regions, the pace of new investor loan commitments has slowed since April 2024. This reflects challenges in finding affordable high-growth investments after a period of rapid property value increases. Future Outlook Looking ahead, several factors will shape the investment landscape: 1. Stable Cash Rates : While interest rates are expected to remain high, stability in the cash rate could prevent a surge in investor selling, though it may reduce new loan commitments. 2. Regional Opportunities : High-growth regions like Queensland, WA, and SA will likely continue attracting investors, particularly those seeking affordable opportunities with capital growth potential. 3. Shift to Sustainability : Investors are increasingly focusing on energy-efficient and sustainable properties, which may further influence market trends. Conclusion Australia’s property investment market in 2024 is a tale of contrasts. While rising costs and regulations push some investors out, others are seizing opportunities in high-growth regions. The diversity in investor behavior and regional dynamics highlights the importance of strategic, informed decision-making for property investors navigating this complex market. References • CoreLogic Australia , Property Pulse: Investor Market Insights 2024, 14 November 2024. • ABS Data : Australian Bureau of Statistics loan commitment data. • RBA Reports : Reserve Bank of Australia commentary on investor behaviors. For more detailed data, visit CoreLogic’s website . 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.

Buying your first home is a significant milestone and a crucial financial decision. Fortunately, the Australian government offers various grants and concessions to support first-home buyers. Here’s a detailed breakdown of these policies: First Home Buyers Guide 1. First Home Owner Grant (FHOG) Each state and territory offers a one-time grant to first-home buyers purchasing new homes. In Victoria, the key details are as follows: • Grant Amount : Up to $10,000  for new homes, and up to $20,000  for homes in regional areas. • Property Value Cap : $750,000. • Eligibility Criteria : • Must be at least 18 years old; • Applicant or partner must not have previously owned property in Australia; • Property must be used as the primary residence for at least 12 months. Sources: 【1】【2】 First Home Buyers Guide 2. Stamp Duty Concessions Stamp duty is a significant cost for buyers, but first-home buyers can benefit from reductions or exemptions: • Full Exemption : For properties valued under $600,000 . • Partial Concession : For properties valued between $600,000 and $750,000 . • Eligibility : Available to Australian citizens or permanent residents for owner-occupied properties. Sources: 【1】【2】 First Home Buyers Guide 3. First Home Loan Deposit Scheme (FHLDS) • Highlights : Allows buyers to purchase a property with only 5% deposit , while avoiding Lender’s Mortgage Insurance (LMI). • Eligibility : • Annual income under $125,000 (single) or $200,000 (family); • Must be a first-home buyer. Sources: 【3】【4】 First Home Buyers Guide 4. First Home Super Saver Scheme (FHSSS) • Advantage : Save for a home deposit within your superannuation account and enjoy tax benefits. • Eligibility : • Must be at least 18 years old; • The purchased property must be for owner-occupation. Source: 【5】 Current Market Trends Recent reports highlight affordability challenges for first-home buyers, particularly in New South Wales and Victoria. However, government support programs and lower property prices in regional areas offer more opportunities for first-time buyers. Sources: 【6】【7】 First-home buyers should take full advantage of these policies while keeping a close eye on market trends and updated government incentives. Working with a reliable real estate agent can help streamline the process and ensure you find a property that meets both your needs and eligibility. Sources: 1. Victorian Government - First Home Owner Grant 2. Victorian Government - Stamp Duty Concessions 3. Australian Government - First Home Loan Deposit Scheme 4. PropTrack Housing Affordability Report 5. First Home Super Saver Scheme 6. Latest Housing Market News 7. Herald Sun Real Estate 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.

With the emergence of more master-planned communities in Melbourne, the living radius for budget-conscious homebuyers has been greatly enriched. Traditionally, areas known for convenient transportation and popular lifestyles have often been out of reach for first-time buyers with limited budgets. However, master-planned communities are gradually helping many buyers break this barrier.   Lumina Live Brilliant Today, let’s explore the boutique community Lumina Townhomes, crafted by Hexa:   Lumina Townhomes offers modern townhouses equipped with all the essentials: A blend of convenience and growth potential Stamp duty savings  with move-in starting in 2025 Exceptional value with 2-4 bedroom townhouses starting from just $542,000 Perfectly located directly opposite Aurora Village, within walking distance to a large shopping center, childcare facilities, supermarkets, and key amenities. Amenities: Schools, parks, and recreational areas nearby Only 7km from Epping Plaza and Costco Close to a future train line, ensuring convenient commuting and significant future value appreciation Ample green spaces and public areas within the development, designed to offer a convenient and enjoyable lifestyle Stylish, functional, and spacious 2-4 bedroom layouts , ranging from 125m² to 219m²   Let’s take a closer look at the advantages of the Lumina project: Lumina essentials Lumina Location When it comes to real estate investment, location is everything, and Lumina does not disappoint! Located in Epping North/Wollert , just 23km from Melbourne’s CBD , Lumina is part of Melbourne’s major northern growth corridor. The project is 24 minutes from Melbourne Tullamarine Airport  and 35 minutes to the Melbourne CBD . Additionally, the government plans to construct Aurora North Station , further enhancing the area’s transport connectivity. From a lifestyle perspective, Lumina is surrounded by convenient amenities. Within a 5-minute drive  is the Epping North Shopping Centre, and within 10 minutes , you can reach the Melbourne Market and Costco, catering to all your shopping needs. Situated directly opposite Aurora Village , Lumina residents can enjoy walking distance to a large shopping center, Coles, Aldi, childcare facilities, restaurants, a post office, and essential infrastructure, making it the perfect place to live or invest. Lumina Central Future Lumina Central Lumina Master Plan Nearby Shopping & Towncentres Modern Facilities: The Lumina project, located in Epping North/Wollert , is situated in a highly livable suburb. One of the key reasons for its appeal is the abundance of well-established amenities. Wollert  is a modern, well-planned suburb with extensive infrastructure designed to enhance the quality of life for its residents. The area boasts multiple parks, sports facilities, shopping centers,  and community centers,  making it an ideal location for families to call home. High-Quality and Diverse Education Options: Nearby Education Lumina is surrounded by a range of excellent schools catering to all age groups, from early learning to higher education. Nearby educational institutions include both private and public options, such as Wollert Primary School , Epping Secondary College , and St. Monica’s College . These schools are known for their outstanding academic programs, diverse extracurricular activities, and supportive learning environments. Furthermore, the area is conveniently located near two top-tier universities, RMIT University  and La Trobe University , offering residents the opportunity to pursue higher education without the need for long commutes.   World-Class Architectural Design: Lumina offers more than just premium development; it boasts cutting-edge design from Architect Rothelowman , a leading name in Australia’s residential design landscape. Rothelowman has elevated the living standards of the Aurora Estate  with its innovative approach. For Lumina, they’ve crafted a community of 266 homes , featuring meticulously designed spaces and distinctive street landscapes. Each block offers a unique character, blending diverse forms, textures, light, and shadows to create a dynamic and vibrant neighborhood. No matter where you come from, living at Lumina ensures every day is filled with sunlight and inspiration. Rothelowman Design Lumina Design Lumina insights Lumina Design Lumina Townhomes Living Design Affordable Pricing: The Lumina project is priced between $542,000 and $750,000, offering an excellent opportunity for first-time buyers and those with a limited budget to invest in a region with significant growth potential. With high demand for rental properties in this area, the returns for investors are equally enticing. Against the backdrop of steadily rising property prices in Melbourne, the affordable homes in Melbourne’s northern suburbs remain highly attractive to many buyers.     Variety of Choices The Lumina project offers a wide range of housing options to buyers. Whether you’re looking for 2-bedroom, 3-bedroom, or 4-bedroom homes, Lumina has something to meet your needs. Lumina Floor Plan Lumina Floor Plan   Lumina Floor Plan There are more you can choose from! Government Housing Incentives: Click here to learn more about available housing incentives. 1. First-Time Buyers:  Eligible first-time homebuyers can enjoy full exemption from stamp duty, with savings of up to $40,000. 2. Investors:  Investors can benefit from stamp duty exemption on the construction portion, with savings of up to $20,000! (Valid until October 21, 2025) For first-time homebuyers with limited budgets, Lumina is undoubtedly an exceptional opportunity not to be missed. Melbourne’s northern suburbs are rapidly emerging as a booming area, with new homes being constructed at a fast pace. This region offers significant growth potential, providing buyers with an excellent opportunity to achieve capital appreciation. Lumina Display After learning so much, Lumina’s display homes are ready and waiting for you to explore on-site. Come and see what it truly looks like! For more information, stay tuned to: • Lumina Townhomes Aurora • Melbourne Property Prices • What You Need to Know Before Buying a Home Also don't forget to subscribe for more!

Located in the southern Melbourne suburb of Elsternwick, Elsternwick Gardens  is a unique residential development crafted by renowned developer Milieu. The project consists of multiple buildings, including Ripponlea Terrace  and Gordon Place , each distinguished by its unique design language and functionality. These buildings collectively offer residents a high-end lifestyle that seamlessly blends modernity with nature. Project Overview Elsternwick Gardens  stands out as one of Melbourne’s most anticipated residential communities, celebrated for its exceptional design and prime location. • Location : Situated approximately 8 km south of Melbourne’s CBD, near the historic Rippon Lea Estate . • Components : • Ripponlea Terrace : A low-rise residential complex inspired by nature, emphasizing seamless integration between architecture and landscape. • Gordon Place : Residences that combine elegance and functionality, offering modern design and convenient amenities. • Construction Plan : • Estimated Start Date : 2025 • Expected Completion Date : October 2026 Design Concept: Nature and Sustainability Elsternwick Gardens  is meticulously crafted by world-renowned design teams, including Woods Bagot , OCULUS , and K.P.D.O.  The project’s design prioritizes environmental sustainability and resident comfort. • Ripponlea Terrace : • The facade integrates greenery, emphasizing the interaction between architecture and nature. • Interiors feature natural stone, timber, and soft color palettes, providing a tactile and visually soothing experience. • Gordon Place : • Incorporates high-performance insulation materials, double-glazed windows, and energy-efficient heating and cooling systems to ensure sustainable living. • Interior design focuses on spatial flow and logical layouts, creating a balance of functionality and aesthetics. • Overall Design Features : • Biophilic design principles are woven throughout, integrating natural light, airflow, and organic materials into the architecture and interiors. • Rainwater harvesting systems, solar photovoltaic panels, and the use of 100% green energy establish the project as a model of sustainable development. Extensive Amenities Elsternwick Gardens  not only offers high-quality residences but also creates a multifunctional community for its residents. • Health and Fitness Facilities : • Fully equipped fitness center, hot and cold mineral pools, infrared sauna, and yoga studio. • Lush outdoor spaces provide ideal areas for relaxation and socialization. • Community Services and Commercial Offerings : • Premium dining options within the community cater to residents’ daily needs. • Public art installations and cultural events enhance the community’s cultural atmosphere. • Transportation and Educational Resources : • Conveniently located near Elsternwick Train Station  and Tram Route 67 , ensuring easy access to transportation. • Surrounded by prestigious schools, including Shelford Girls Grammar  and Caulfield Grammar . History and Cultural Heritage Elsternwick Gardens  is located on the former site of the Australian Broadcasting Corporation (ABC) studios, a place rich in history and cultural significance. • Rippon Lea Estate : • The nearby Rippon Lea Estate  served as a design inspiration for the project, with its iconic Victorian-era gardens highlighting the area’s historical and cultural roots. • Art and Cultural Initiatives : • Artistic installations and community events pay tribute to the legacy of the ABC studios and the local Indigenous history. Smart Homes and Future Lifestyles Elsternwick Gardens  embraces smart technology to provide residents with a modern and convenient living experience: • Smart Locks : Enable remote access and keyless entry. • Mobile Control : Manage appliances, energy usage, and video intercom systems via smartphone. • Smart Parking System : Ensures seamless vehicle access and convenience. Green Sustainability: Designed for the Future As a model of sustainable development, Elsternwick Gardens  integrates eco-friendly and energy-efficient practices into its design: • 100% Green Energy : Fully gas-free, powered by solar photovoltaic systems. • Energy-Efficient Design : Features high-efficiency heat pump systems, low-VOC materials, and double-glazed windows to minimize energy consumption. • Water Resource Management : A rainwater harvesting system is used for landscape irrigation, significantly reducing water usage. A Vision for Living: The Future and Nature Elsternwick Gardens , through the distinctive designs of Ripponlea Terrace  and Gordon Place , seamlessly blends history, culture, and modern lifestyles. Whether you value green living or seek a high-quality community, this development caters to all your needs. Discover more or book a tour to explore this urban oasis where modernity meets nature, and experience a truly unique way of life!

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

Owning a home remains a cornerstone of financial security and personal aspiration for many Australians. Yet, saving for a home deposit, particularly in cities like Melbourne and Sydney, is increasingly challenging. High property prices, coupled with rising living costs, make the process daunting, especially for first-time buyers. This report examines the time and effort required to save for a deposit in these metropolitan areas, highlights influencing factors, and explores strategies and programs to facilitate homeownership. Property Market Overview Melbourne and Sydney are two of Australia’s largest property markets, and their median house prices are among the highest nationwide. As of mid-2024: • Sydney:  Median house price is approximately $1.42 million , requiring a 20% deposit of $284,000 . • Melbourne:  Median house price stands at $941,000 , necessitating a 20% deposit of $188,200 . These figures represent a significant financial hurdle, particularly for individuals or young couples with average incomes. Average Time to Save for a Deposit The time required to save for a deposit varies based on factors such as income, savings rate, and living costs. According to the Domain First Home Buyers Report (2024), the average couple aged 25-34 takes: • Sydney:  Approximately 6 years and 8 months  to save for a 20% deposit on an entry-level house. • Melbourne:  Approximately 5 years and 5 months . These estimates assume a savings rate of 20% of gross income, which can be optimistic for households juggling other financial responsibilities. Key Factors Affecting Savings Time 1. Income Levels Higher income earners can save more quickly, but even dual-income households may struggle in cities with such high property prices. Lower-income earners face an extended savings timeline, often exceeding a decade. 2. Property Prices Rising property prices increase the required deposit. Over the last decade, median house prices in both cities have grown significantly, compounding the challenge for aspiring homeowners. 3. Living Expenses High costs of living in metropolitan areas reduce disposable income available for savings. Rent, transportation, and lifestyle costs often limit individuals’ ability to save at an accelerated pace. 4. Interest Rates Recent interest rate hikes have led to increased borrowing costs. While this might temper housing demand slightly, it hasn’t drastically reduced property prices, leaving deposits relatively high. Strategies to Expedite Savings 1. Government Assistance Programs • First Home Guarantee Scheme:  Allows eligible buyers to purchase with deposits as low as 5%, eliminating the need for Lenders Mortgage Insurance (LMI). This significantly reduces upfront costs, shortening the savings period. • First Home Owner Grant (FHOG):  Offers one-off payments for eligible first-home buyers, varying by state. In Victoria, the grant is available for new homes valued up to $750,000. 2. Financial Planning • Budgeting:  Creating a detailed monthly budget helps identify areas where expenses can be trimmed to allocate more funds toward savings. • Automated Savings:  Setting up automatic transfers to a dedicated savings account ensures consistency and reduces the temptation to spend. 3. Boosting Income • Additional Work:  Taking on part-time jobs, freelancing, or weekend gigs can supplement income, providing a faster route to reaching deposit goals. • Career Growth:  Pursuing higher-paying roles or investing in education to upskill can lead to increased earnings over time. 4. Reducing Expenses • Shared Living Arrangements:  Renting with roommates or living with family can significantly reduce housing costs, freeing up funds for savings. • Lifestyle Adjustments:  Cutting back on non-essential spending, such as dining out or expensive subscriptions, can help maximize savings. 5. Smaller Initial Purchases Starting with a smaller or less expensive property (e.g., apartments or units) can lower the deposit requirement, allowing buyers to enter the market sooner and upgrade later. Impact of Government Policy on Savings The Victorian Government’s temporary off-the-plan duty concession  (effective October 21, 2024, to October 20, 2025) is a recent initiative aimed at improving affordability. This concession reduces the stamp duty payable on eligible off-the-plan purchases, allowing buyers to deduct construction costs incurred post-contract signing from the dutiable value. For example: • A $1 million off-the-plan property with $400,000 allocated to construction costs results in a dutiable value of $600,000, lowering the stamp duty significantly. Such measures can reduce upfront costs and make savings goals more attainable for buyers. While strategies and government policies provide some relief, saving for a deposit remains a significant challenge: 1. Price Escalation: As property prices continue to rise, deposit requirements grow, potentially outpacing savings efforts. 2. Limited Reach of Programs: Government schemes often have strict eligibility criteria, excluding many potential buyers. For instance, income thresholds and property value caps may disqualify middle-income earners or buyers in high-demand suburbs. 3. Disproportionate Benefits: Critics argue that some policies, such as the temporary duty concession, may disproportionately benefit wealthier buyers or investors, failing to address affordability for first-home buyers. Consider a couple earning a combined gross income of $150,000 annually, saving 20% of their income ($30,000 per year): • In Sydney: With a $284,000 deposit required for a median house, it would take approximately 9.5 years  (excluding interest or investment growth). • In Melbourne: With a $188,200 deposit required, the same couple could achieve their goal in 6.3 years , assuming no major changes in expenses or income. This illustrates how Melbourne’s lower property prices provide a relatively more accessible market, though both timelines are substantial. Future Considerations • Interest Rate Trends: Falling interest rates could increase borrowing capacity, potentially leading to further property price rises and extended savings timelines. • Rental Market Pressures: Rising rents may make saving even harder for prospective buyers, especially in competitive urban markets. • Policy Adjustments: Expanding the scope of government programs to include higher-value properties or offering larger grants could provide meaningful support. Saving for a home deposit in Melbourne and Sydney is a daunting task, often requiring years of disciplined financial planning. While government programs and strategic financial management can help expedite the process, the combination of high property prices and living costs ensures that affordability challenges persist. For prospective buyers, a proactive approach that includes budgeting, income growth, and leveraging assistance schemes is essential to turning the dream of homeownership into reality. By staying informed, setting realistic goals, and adopting effective strategies, Australians can navigate the complexities of these markets and take meaningful steps toward their property aspirations. Disclaimer This report provides general information and should not be considered professional financial, legal, or investment advice. Figures and policies mentioned are subject to change and may vary based on individual circumstances. Please consult with qualified professionals for personalized advice. Core Elite Real Estate is not responsible for decisions made based on this content. References • Domain First Home Buyers Report 2024 • State Revenue Office Victoria • Property Update: Housing Market Trends • Proptrack: Savings Insights and Schemes

Capital Gains Tax (CGT) is an important consideration for property owners in Victoria, whether you own an investment property or your principal place of residence (PPR). Understanding how CGT applies to different types of properties can help you manage your finances effectively and minimize tax liabilities. This guide will explore the key aspects of CGT, exemptions, discounts, and the differences between investment properties and primary residences. What is Capital Gains Tax (CGT)? CGT is the tax applied to the profit made from selling a capital asset, such as real estate, shares, or investments, acquired after 20 September 1985. The tax is integrated into your income tax rather than being a separate levy. When you sell a property, a CGT event occurs, and your capital gain or loss is calculated by subtracting the cost base (purchase price plus associated costs) from the capital proceeds (sale price). Australian Taxation Office (ATO): Capital Gains Tax Overview Key Features of CGT in Victoria 1. Taxable Events CGT applies when you dispose of an asset. This can include selling, gifting, or transferring ownership. If the capital proceeds exceed the cost base, you have a capital gain; otherwise, you incur a capital loss. 2. Exemptions Certain assets are exempt from CGT, including: • Principal Place of Residence (PPR):  Your main home is generally exempt, provided it meets the criteria set by the Australian Taxation Office (ATO). • Personal Use Assets:  Items acquired for personal enjoyment, such as boats or furniture, provided they cost less than $10,000. • Pre-CGT Assets:  Assets acquired before 20 September 1985. 3. CGT Discounts Individuals and superannuation funds can benefit from CGT discounts: • A 50% discount  is available for individuals if the asset is held for more than 12 months. • Superannuation funds are eligible for a 33.33% discount . calculating-your-cgt-discount-method-1024x683 Comparing CGT for Investment Properties and Principal Place of Residence 1. Tax Exemption • Principal Place of Residence (PPR):  Your main home is entirely exempt from CGT, provided it meets specific criteria. • Investment Properties:  No exemption applies. The full capital gain is subject to taxation. 2. Partial Exemptions • For a PPR , partial exemption may apply if the property was rented out or used for business purposes. The “six-year rule” allows you to rent out your PPR for up to six years while maintaining the CGT exemption. • Investment properties  are eligible for partial exemptions only if they were previously used as a PPR. 3. Cost Base Adjustments • Cost base adjustments, including purchase costs, stamp duty, legal fees, and improvements, are crucial for investment properties to calculate CGT accurately. • These adjustments are not relevant for a PPR unless it was used to generate income. 4. CGT Discounts • PPRs do not require discounts since they are exempt from CGT. • Investment properties held for more than 12 months qualify for the 50% CGT discount , reducing the taxable gain. 5. Record-Keeping Requirements • Minimal record-keeping is needed for PPRs unless the property was rented out. • Investment properties require detailed records of purchase documents, improvements, rental income, expenses, and depreciation. 6. Taxable Income Impact • Sale proceeds from a PPR do not affect taxable income. • Capital gains from investment properties are added to your assessable income and taxed at your marginal tax rate. Tax Reforms Discussion Financial Considerations for Victoria While CGT is federally administered, property transactions in Victoria are also subject to state taxes, such as: • Stamp Duty:  Payable on most property purchases, varying based on the property’s value. • Land Tax:  An annual tax for landowners, excluding PPRs. These taxes, combined with CGT, should be carefully factored into your financial planning. Maximizing CGT Benefits To make the most of CGT exemptions and discounts, consider these strategies: 1. Hold Assets for Over 12 Months:  This allows you to qualify for the CGT discount on investment properties. 2. Plan the Use of Your PPR:  Renting out your PPR may still allow you to benefit from the six-year rule. 3. Keep Detailed Records:  For investment properties, meticulous documentation of expenses and improvements can reduce your taxable gain. 4. Consult Professionals:  Seek advice from tax advisors or accountants to navigate the complexities of CGT and state taxes effectively. Victorian-Land-Tax Understanding the nuances of CGT in Victoria is crucial for property owners. While your principal place of residence often benefits from exemptions, investment properties are subject to CGT with opportunities for discounts and partial exemptions. By staying informed and seeking professional advice, you can optimize your tax obligations and make sound financial decisions. Whether you’re selling your home or an investment property, a clear understanding of CGT can help you achieve your financial goals with confidence. For further insights into property taxation or tailored advice, feel free to reach out to a qualified tax professional. Disclaimer The information provided in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. When dealing with Capital Gains Tax (CGT) or other tax-related matters, it is recommended to consult a qualified tax advisor, accountant, or legal professional to obtain accurate and personalized advice tailored to your specific circumstances. While every effort has been made to ensure the accuracy of the information, laws and regulations may change, and the author and publisher are not responsible for any losses or consequences arising from reliance on this information. References 1. Australian Taxation Office (ATO): Capital Gains Tax Overview ATO - Capital Gains Tax 2. ATO: Calculating Your CGT ATO - Calculating Capital Gains Tax 3. Herald Sun: Prospective Property Tax Changes “Catastrophic” tax changes could be the final straw for investors 4. The Australian: Tax Reforms Discussion GST, Tax on Super, and Negative Gearing Debates

The Reserve Bank of Australia (RBA) has announced its decision to keep the official cash rate at 4.35% , marking the ninth consecutive meeting without a change. This decision, made on December 10, 2024 , reflects the central bank’s cautious approach to balancing declining inflation with economic growth challenges. In this blog, we’ll explore the implications of this decision, its effects on the property market, and provide actionable insights for buyers, sellers, and investors. RBA Key Points from the RBA Announcement 1. Interest Rate Held Steady: • The official cash rate remains at 4.35% , with no immediate indication of further hikes. 2. Inflation Trends: • Inflation is declining but remains slightly above the RBA’s target range of 2–3% , prompting a cautious stance. 3. Economic Growth: • Economic activity shows signs of moderation, with slower growth and wage increases. However, the labor market remains resilient, supporting the RBA’s decision. 4. Future Outlook: • A softened tone in the RBA’s statement suggests openness to interest rate cuts in 2025, potentially as early as February. Interest rate kept at 4.35%, Source from RBA Implications for the Australian Economy For Borrowers: Higher interest rates continue to strain households, especially those with variable-rate mortgages. Monthly repayments remain elevated, limiting disposable income. However, the possibility of rate cuts offers hope for relief in the coming year. For Businesses: Businesses face higher borrowing costs, which may dampen investment and expansion plans. This is particularly significant for small to medium enterprises that rely on affordable credit. For Consumer Spending: Households are prioritizing essential expenses due to increased mortgage repayments, further slowing consumer spending and economic growth. Cash rate kept at 4.35%, expected to drop early 2025, source RBA How Does This Impact the Property Market? The property market, being closely tied to interest rates, is directly affected by the RBA’s decisions. Here’s how the current rate pause and potential cuts might play out: 1. Property Prices: • Stabilizing interest rates provide relief to buyers and sellers, particularly after a period of declining property values. • The prospect of rate cuts could boost confidence, leading to renewed buyer activity and potentially a moderate price recovery. 2. Borrowing Capacity: • High interest rates have reduced borrowing power for buyers. If rates are cut in 2025, borrowing capacity will increase, making homeownership more accessible. 3. Rental Market: • Rising interest rates have discouraged property investors, reducing rental supply. This has driven rental prices higher, intensifying affordability challenges for tenants. 4. First-Home Buyers: • High interest rates and property prices continue to pressure first-home buyers. Any future rate cuts will likely benefit this segment by easing borrowing conditions. Consumer price inflation between 2-3%, source RBA Advice for Stakeholders in the Property Market For Buyers: • Be Strategic:  Monitor interest rate trends and property prices. If you’re considering buying, a potential rate cut in 2025 could improve borrowing conditions. • Get Pre-Approval:  Secure a clear understanding of your borrowing capacity to act quickly if favorable conditions arise. • Explore Fixed Rates:  Consider locking in fixed-rate loans to protect against potential future rate fluctuations. For Sellers: • Leverage Market Stability:  Stabilizing prices may attract cautious buyers. Highlight the value of your property in a recovering market. • Be Flexible:  Competitive pricing and incentives can help close deals in an environment where affordability is a concern. For Investors: • Target Rental Yields:  With rents rising due to limited supply, focus on areas with high rental demand for better returns. • Plan for Rate Cuts:  Anticipate increased competition in the property market if rates are reduced, and act early to capitalize on favorable conditions. Plan ahead. What’s Next? The RBA’s decision reflects a careful balancing act between curbing inflation and supporting economic growth. With a softened stance on monetary policy, the door is open for potential rate cuts in 2025. For those involved in the property market, staying informed and planning strategically will be crucial to navigating the changing landscape. The property market is at a critical juncture, influenced by the interplay of high interest rates, moderating inflation, and economic uncertainties. Whether you’re buying, selling, or investing, it’s essential to stay ahead of market trends and adapt your strategies accordingly. With potential rate cuts on the horizon, 2025 could mark a turning point for the Australian property market. Disclaimer:  This article is for informational purposes only and does not constitute financial or legal advice. Always consult a professional for advice tailored to your circumstances. References 1. Reserve Bank of Australia (RBA): Monetary Policy Statement RBA Statement on Monetary Policy 2. Reuters: Australia’s Central Bank Holds Rates at 4.35% Reuters - RBA Maintains Interest Rates 3. The Australian: RBA’s Softened Stance Raises Prospects of Rate Cuts The Australian - Rate Cut Speculations 4. CoreLogic: Property Market Insights CoreLogic - Australian Property Market Update

Starting 1 January 2025 , new regulations under Australia’s Foreign Resident Capital Gains Withholding (FRCGW)  regime will bring significant changes to property transactions. These updates aim to strengthen the collection of capital gains tax from foreign residents disposing of Australian property. As a professional blogger with a deep interest in property and finance, I’ve outlined the key changes, their impacts on buyers and sellers, and actionable suggestions to navigate the new rules effectively. Withhold Tax What Are the New Withholding Changes? The Australian Taxation Office (ATO) is implementing the following changes to enhance compliance: 1. Increased Withholding Rate • The withholding tax rate will increase from 12.5%  to 15%  of the property’s purchase price. 2. Removal of Property Value Threshold • Previously, the withholding obligation only applied to properties valued over $750,000 . From 2025, this threshold will be removed, and the withholding will apply to all property transactions , regardless of value. Who Will Be Affected? 1. Sellers • Australian Resident Sellers: Australian residents must provide buyers with a Clearance Certificate  issued by the ATO on or before settlement  to avoid the 15% withholding. Without this document, buyers are legally required to withhold 15% of the sale price and remit it to the ATO. Impact: • Administrative burden to obtain the Clearance Certificate in advance. • Potential cash flow issues if the withholding is mistakenly applied. • Foreign Resident Sellers: Foreign sellers will be subject to the withholding tax. If the default 15% rate does not reflect their actual tax liability, they can apply for a Variation Notice  to adjust the withheld amount. Impact: • Increased tax liability with the higher rate. • Delays in accessing sale proceeds while applying for a variation or claiming refunds. 2. Buyers • Buyers are now responsible for ensuring the withholding tax is correctly applied where required. They must: • Verify the seller’s residency status. • Withhold 15% of the purchase price if no Clearance Certificate is provided. • Remit the withheld amount to the ATO. Impact: • Increased administrative obligations to verify compliance. • Risk of penalties if the withholding requirement is overlooked or improperly handled. Australian Government Taxation Office Learn about < Understanding Capital Gains Tax (CGT) in Victoria: A Comprehensive Guide> Implications of the Changes • For Sellers: Australian resident sellers need to be proactive in obtaining their Clearance Certificates well ahead of settlement. Delays in processing could result in unnecessary withholdings, potentially straining their cash flow or delaying access to sale proceeds. • For Buyers: Buyers face added administrative duties and potential legal risks if the withholding requirements are not met. Understanding the seller’s residency status and acting promptly is crucial to avoid penalties. Suggestions for Navigating the New Rules 1. For Sellers: • Apply for a Clearance Certificate Early:  Start the application process with the ATO as soon as you decide to sell your property. Clearance Certificates are valid for 12 months and can be reused for multiple offers on the same property. • Understand Your Residency Status:  If you are a foreign resident, consult a tax advisor to evaluate your tax obligations and consider applying for a Variation Notice if the 15% rate is excessive. • Work with Professionals:  Engage a knowledgeable conveyancer or solicitor to guide you through the documentation process. 2. For Buyers: • Verify Residency Status Early:  Ask for the seller’s Clearance Certificate during the negotiation phase to avoid last-minute surprises. • Ensure Timely Remittance to the ATO:  Buyers are responsible for remitting withheld amounts, so make sure this step is completed on time to avoid penalties. • Seek Legal Advice:  If unsure about the seller’s residency or withholding requirements, consult a property law expert to ensure compliance. The upcoming changes to Australia’s Foreign Resident Capital Gains Withholding regime are poised to reshape property transactions. While the reforms aim to bolster tax compliance, they also impose additional obligations on both buyers and sellers. By understanding these new rules and acting early, property stakeholders can ensure smooth transactions and avoid costly penalties. Whether you’re buying, selling, or supporting property transactions, preparation is key. If you have questions or concerns about how these changes might impact you, consulting with legal and tax professionals is the best way to stay ahead. Remember, being proactive can save you time, stress, and money. Disclaimer:  This blog provides general information only and should not be considered legal or financial advice. Always consult a qualified professional for guidance specific to your situation. References 1. Australian Taxation Office (ATO) - Withholding Changes When Buying and Selling Property ATO - Foreign Resident Capital Gains Withholding 2. Australian Government - Capital Gains Withholding Foreign Resident Capital Gains Withholding Overview 3. Legal Vision - Changes to Capital Gains Withholding Tax for Property Transactions Legal Vision - Foreign Resident Withholding Tax Changes

Property auctions are a common way to buy and sell real estate. For first-time buyers, the process may seem complex and intimidating. As an experienced real estate agent, I’m here to help you navigate your first auction with ease. In this blog, I’ll explain key auction terms, the auction process, and the rights and responsibilities of both buyers and auctioneers。 Key Terms You Should Know Before Attending a Property Auction 1. Auctioneer:  A licensed professional who conducts the auction, accepts bids, and declares the property sold to the highest bidder. 2. Reserve Price:  The minimum price the seller is willing to accept. This is confidential and set before the auction begins. 3. Vendor Bid:  A bid made by the auctioneer on behalf of the seller to encourage bidding. These bids must be clearly announced. 4. On the Market:  A term used when the bidding has reached the reserve price, meaning the property will be sold to the highest bidder. 5. Passed In:  If bidding does not meet the reserve price, the property is “passed in,” and the highest bidder is usually given the first opportunity to negotiate with the seller. 6. Fall of the Hammer:  The moment the auctioneer strikes the gavel, officially declaring the property sold. 7. Bidder’s Card:  A numbered card given to registered bidders to signal their bids during the auction. 8. As-Is Sale:  The property is sold in its current condition, with no guarantees or warranties from the seller. How Property Auctions Work in Victoria 1. Property Inspections Before the auction, attend open-for-inspection days to thoroughly evaluate the property. In Victoria, auction properties are sold “as is,” so any issues will become your responsibility after purchase. 2. Registration On auction day, you must register to bid. Bring valid identification to receive a bidder’s card, which you will use to signal your bids. 3. Auction Commencement The auctioneer will begin by outlining the auction rules, providing a brief overview of the property, and confirming any legal details relevant to the sale. 4. Bidding Process • Bidding starts with an opening bid from the floor or a vendor bid. • The auctioneer will call for incremental bids, acknowledging each offer and encouraging competitive bidding. 5. Reserve Price and “On the Market” Announcement Once the highest bid meets or exceeds the reserve price, the auctioneer announces that the property is “on the market.” From this point, the property will be sold to the highest bidder. 6. Fall of the Hammer When bidding concludes, the auctioneer announces “sold,” and the highest bidder immediately signs the contract of sale and pays a deposit (typically 10%). 7. Passed-In Properties If the bidding doesn’t reach the reserve price, the highest bidder is usually invited to negotiate directly with the seller after the auction. Your Rights and Responsibilities as a Buyer Rights 1. Access to Information:  You have the right to request the property’s contract of sale and auction rules before the auction. 2. Fair Bidding Process:  The auction must be conducted transparently, with vendor bids clearly identified. 3. First Negotiation Opportunity:  If a property is passed in, the highest bidder gets the first chance to negotiate with the seller. Responsibilities 1. Registration:  You must register before the auction to participate in the bidding. 2. Financial Readiness:  Ensure you have pre-approved financing and the required deposit available immediately after the auction. 3. Understanding “As-Is” Purchases:  Familiarize yourself with the property’s condition and any legal obligations before bidding. Tips for First-Time Auction Buyers in Victoria Before the Auction 1. Inspect Thoroughly:  Attend open houses and arrange professional inspections if needed. 2. Review the Contract:  Consult a solicitor or conveyancer to review the contract of sale and identify any red flags. 3. Set a Budget:  Determine your maximum bid and stick to it to avoid overextending financially. 4. Get Pre-Approval:  Secure a loan pre-approval so you know your borrowing capacity. During the Auction 1. Start Strong:  Consider making an early bid to set the pace and demonstrate confidence. 2. Stay Calm:  Avoid showing emotions that might signal desperation or hesitation to other bidders. 3. Bid Strategically:  Be aware of bidding increments and time your bids thoughtfully. After the Auction 1. Be Prepared to Act:  If you’re the winning bidder, be ready to sign the contract and pay the deposit on the spot. 2. Negotiate if Passed In:  If the property is passed in, use your position as the highest bidder to negotiate with the seller. Common Mistakes to Avoid 1. Failing to Register:  Without registration, you cannot bid at the auction. 2. Overbidding:  Stick to your budget, even in the heat of the moment. 3. Skipping Legal Review:  Always review the contract of sale with a legal expert before the auction. 4. Underestimating Costs:  Account for additional expenses like stamp duty, legal fees, and potential renovations. Property auctions in Victoria are a dynamic and exciting way to buy real estate, but preparation is key. By understanding the terms, process, and your rights and responsibilities, you can confidently navigate your first auction and increase your chances of success. If you’re considering attending an auction or have questions about the process, feel free to contact me. I’m here to provide guidance and help you secure the property of your dreams. Disclaimer:  This blog is for informational purposes only and does not constitute financial or legal advice. Always consult a qualified professional for guidance specific to your circumstances. References 1. Consumer Affairs Victoria - Conducting a Real Estate Auction Consumer Affairs VIC - Auction Rules 2. Queensland Government - Buying a Property at Auction QLD Government - Auction Guide 3. NSW Fair Trading - Buying Property at Auction NSW Fair Trading - Auction Guide 4. OpenAgent - Tips for First-Time Auction Buyers OpenAgent - Auction Tips 5. Home Loan Experts - Bidding at Auction Home Loan Experts - Auction Guide

Housing affordability remains a critical concern across Australia, as highlighted in the ANZ CoreLogic Housing Affordability Report - November 2024 . Rising home values, stagnant income growth, and increasing rental costs have created significant challenges for prospective buyers and renters alike. This comprehensive blog combines insights into national trends and Melbourne’s unique position in the housing market, offering a detailed analysis for our Core Elite Real Estate audience. A Snapshot of 2024 The past year has seen housing affordability metrics deteriorate nationwide, with affordability challenges becoming more pronounced in several capital cities. Key national statistics include: • Median Dwelling Value : $807,000, an 8.5% increase from the previous year. • Median Weekly Rent : $642, up 9.6% from 2023. • Median Gross Household Income : $101,000 annually, rising by just 2.8%. HOUSING AFFORDABILITY METRICS BY CAPITAL CITY Homeownership: A Steeper Climb The report reveals the growing difficulty of purchasing a home in Australia: • Dwelling Value-to-Income Ratio : The national median ratio reached 8.0 , well above the 20-year average of 6.7. • Years to Save for a Deposit : A median-income household now requires 10.6 years  to save for a 20% deposit, assuming a 15% savings rate. • Mortgage Affordability : More than 50.6% of household income  is needed to service a new mortgage, a record high. PORTION OF AUSTRALIAN HOME VALUES THAT ARE AFFORDABLE (REQUIRE LESS THAN 30% OF INCOME TO SERVICE A LOAN) Rental Pressures Intensify Renters are also feeling the squeeze: • Median Rent Burden : Households now spend 33% of their gross income  on rent, marking a new high. • Cities like Adelaide  lead the affordability crisis, with renters spending 34.6% of income  on housing. NATIONAL - HOUSING AFFORDABILITY MEASURES AS OF SEPTEMBER 2024 Melbourne’s Property Market: A Mixed Bag Melbourne’s housing market has seen significant changes over the years, offering a unique mix of challenges and opportunities. Once among the most expensive cities, Melbourne has experienced price softening, making it comparatively more accessible than Sydney or Brisbane. 1. Median Dwelling Values : • Melbourne’s median dwelling value is $779,000 , positioning it as the sixth-most expensive city  in Australia. • In comparison, Sydney leads with a median value of $1,193,000 , followed by Brisbane at $883,000  and Adelaide at $809,000 . 2. Affordability Metrics : • Dwelling Value-to-Income Ratio : Melbourne’s ratio of 7.0  is below Sydney’s 9.8  but above Canberra’s 6.1 , reflecting a middle ground among capital cities. • Years to Save a Deposit : At 9.7 years , Melbourne offers an edge over Sydney ( 13 years ) and Adelaide ( 12 years ). 3. Rental Market : • Melbourne renters spend 31.6% of household income  on average, slightly below Sydney ( 33.3% ) and Adelaide ( 34.6% ). 4. Market Trends : • Melbourne’s property values have declined by 5.1%  since their peak in March 2022, making it more affordable for buyers compared to other capitals. • Rental affordability remains a challenge, as demand for housing continues to rise. VALUE TO INCOME RATIO - HOUSES VS UNITS, NATIONAL Comparisons Across Cities The challenges of housing affordability vary widely between Australian cities: • Sydney : The least affordable city, with a 62.1% income requirement  for mortgage repayments and 33.3% for rent . Saving for a deposit takes the longest at 13 years . • Brisbane and Adelaide : Both cities have experienced rapid price growth due to lifestyle changes and migration. However, this growth has significantly eroded affordability. • Perth and Darwin : These cities remain among the most affordable, with Perth requiring less than 10 years  to save for a deposit and Darwin being the cheapest rental market. • Canberra : Known for its relative stability, Canberra is the second-most affordable city  for buyers, with mortgage payments requiring 38.6% of income . • Hobart : Affordability has improved in Hobart due to declining property values, although rents remain high. CUMULATIVE CHANGE IN DWELLING VALUES SINCE MARCH 2020, CAPITAL CITY MARKETS Future Outlook While modest improvements in affordability are expected in 2025, challenges persist: • Interest Rates : ANZ predicts a reduction in the cash rate by 75 basis points by late 2025, potentially easing mortgage serviceability costs. • Supply Constraints : Without significant increases in housing supply, any gains in affordability could be short-lived, as renewed demand pressures may drive prices higher. Opportunities in Melbourne’s Market Despite challenges, Melbourne’s property market offers unique advantages for buyers and investors: • Price Declines : Melbourne’s softened prices present a relative bargain compared to cities like Sydney and Brisbane. • Diverse Housing Options : From affordable units to high-end homes, Melbourne caters to various needs and budgets. • Growth Potential : As migration rebounds and interest rates stabilize, Melbourne is poised for long-term recovery. Australia’s housing affordability crisis continues to deepen, with Melbourne presenting both challenges and opportunities. While affordability remains a concern, the city’s relative accessibility and growth potential make it a compelling option for buyers and investors. Disclaimer The content of this blog is based on the ANZ CoreLogic Housing Affordability Report - November 2024  and general market observations. It is intended for informational purposes only and should not be considered as financial, legal, or real estate advice. Market conditions are subject to change, and readers are encouraged to seek professional guidance tailored to their specific circumstances before making property-related decisions.