Land taxes/rates collection up 12.4% whilst stamp duty collection down 16.7% in Victoria. Proves that Vic treasurer has no clue on financial economics Whilst I have no doubt Victoria will lead the way over the next decade, it really needs to get rid of its toxic state government! I can already see significant movement in the Melbourne metro numbers…my guess is advanced investors/big money are tapping into the Melbourne market already!
Melbourne market is adjusting to the new investing landscape in light of the Victorian government changes around taxes and tenancy laws. Markets tend to overdue adjustments to the improved conditions on the upside and similarly adjustments to the negative conditions on the downside. As a result, we are likely to see Perth, Adelaide and Brisbane to overdo on the upside and Melbourne market will over do to the downside. That may end up in a situation where SA and WA median prices overtake VIC before we see "the sleeping giant " wakes up. I would give Melbourne another 2-3 years before it gets going again.
Thanks for the great content! In my opinion, Perth will perform very well for at least the next 3-4 years, while Melbourne is likely to remain sideways for 1-2 years. If anyone is considering buying in either of these markets right now, they should invest in Perth. In a couple of years, they can sell that property and buy in Melbourne when it starts performing. I strongly believe we are at the bottom of the cycle in Melbourne, but as you mentioned, there are many factors that aren't encouraging investors to come in, and prices are flat. More supply and less demand do not drive prices higher.
Great episode and great guest, thank you. Please have him back. I just bought my first IP and it's in a very nice suburb in Melbourne, so I enjoyed this discussion especially 😅😂😊
Melbourne has a whole new city suburb being developed called Cloverton, this will accommodate new homes for 300,000 people. Long term planning for Melbourne is to continue to create 5 major hubs around the city edges.
It'd be interesting for us to unpack the majority dwelling types in this new area to see how it could likely affected housing prices of established properties nearby.
@@pizzaandproperty1246 exactly my point. Geelong is quiet also traditional investor suburbs such a Corio are still sitting with extra stock. Had an agent tell me blocks of land are just being handed back. Increasing talk about a recession worse than 2008 coming....global. Florida is flattening. The same market behaviour as described in The Big Short is occurring again...not possibly going to happen....is happening. Infact there are people getting their money out of banks now. ...interesting times!!
There’s always people talking about things about to go belly up, and every now and then they’re right! But I very rarely meet one of these people that does well investing they make more money off telling you how “x” market is about to drop, even a broken clocks correct twice a day
@@pizzaandproperty1246 I hear you however the market has contracted significantly. The lifestyle market is not selling. Also many investors are spruking the amazing buys here and there. Even the boasting about the Brisbane market. Has anyone checked the flooding of their prospective buy?? 70 percent of Australians experienced extreme weather events in 2022 and the direct impact on property and prices and insurance is financially life changing for individuals and communities.....I look at all the reports that come out and immediately check the suburb for flooding. It's is a very very good reality check before buying. As for a financial crisis....just have to wait and see..
I think you did better with this episode. Some small side tracks. But generally well-reasoned and approached the theme of Perth vs Melbourne from different angles
Im just so happy that houses in perth are nearly triple what they were only 5 years ago. Im just so happy thay my house has nearly quadrupled in value while people that live here have been priced out and some are living in their cars. Wooooohoooooo 🎉🎊🎉🎉🎊🎊🥂 time to celebrate
The challenge is the laws in vic, whether it be taxation, undue balance towards tenants rights etc, will be a big hurdle for liberals to repeal when they get in. Also the last decade has had so much “infiltrate the institutions” by the left the public service will fight tooth and nail to keep up the communist agenda. Nothing is irreparably fucked but vic is pretty cooked! I’ve sold tons of property in vic in the last few years and also relocated my family to another state. I want my kids to know the difference between a boy and a girl lol.
@@pizzaandproperty1246 my own. Land tax went through the roof, saw the writing on the wall for the economy and the sector, time to reallocate capital. Plus buying a nice ppor in one of Sydney’s most expensive suburbs needed a few melb properties sold to fund that ha! But all good things come at a price.
Has there been a play in the first buyers to buy in Perth and then rent in Melb. The yields suggest you get an upgraded property in Melb due to the yield difference. Particularly given the quality of suburbs you can be in within Perth at the median price. Vs this in Melbourne
There is somewhere in between negative gearing and the government having to provide the rentals, many countries around the world, like England/UK, do not have negative gearing and there are plenty of people investing in property, it's just you know that you can't offset against your income tax, would this hold back inflated house prices? It's so expensive in Australia....
Not sure houses prices in the UK are that much better than Aus, the link below is about 10 months old now but still a good reference point www.finder.com.au/international-money-transfers/average-property-price-by-country
I was at a gathering on Sunday where discussion was going on about how investors are letting go of their land deposits cause of taxes and developers in Ballarat area making up false advertising about very few lots available!
@@pizzaandproperty1246 the inflating of assets and the socialist policies like negative gearing have been a trade off that only the older generation can enjoy. If Mike can say that in a Scottish accent he’s got it covered haha
If Labour gets booted out at the 2026 Vic state elections, Melbourne will bounce back with a vengeance .Still 28 months away .Might go up a bit when interest rates drop by 1% next year but I wouldn't touch it with a ten foot pole. Construction industry is in turmoil in WA and it will fly for another 2 years .Will stagnate a little bit after that but this times boom is not because of mining .If anything , mining is not doing great in the last 12 months but makes no difference .Economy is more diversified than 10 years ago .This is a watershed moment in Perths property history. It will go through peaks and troughs but fundamentally Perth and WA's economy are very sound . If anything , Adelaide's median has no business to be where it is , way overvalued as there are no fundamentals for a city with 1 million lesser people than Perth.
Victoria has the highest debt compared to any other state. To address this, the government will cut infrastructure & other spending to prevent the debt from worsening. This will impact jobs and could potentially limit future population growth in the state, which, in turn, may also limit housing price growth due to decreased demand. This is entirely my opinion.
I have an IP in Perth . My plan is to sell it then buy in melbourne..... When will be that perfect day to sell then buy...... One day looking back ill be able to say the exact day but with no time travel option ill have to make an educated guess My current plan is to sell perth late this year. Sure i may miss that last 5-10% run but since im looking at a higher price point in Melbourne its more important for me to get in before it moves too much
I think property investors who are buying now should also consider climate change predictions. In 10-20 years, in my opinion, that would be a major factor to decide where people want to live.
This is flawed at the core especially when he says multiply 700k by 11 mil dwellings in Australia to a 3 trillion whatever. Speculation has made average house price to be 700k in the first place. It wouldn't have happened if the govt didn't incentivise speculation.
Land taxes/rates collection up 12.4% whilst stamp duty collection down 16.7% in Victoria. Proves that Vic treasurer has no clue on financial economics
Whilst I have no doubt Victoria will lead the way over the next decade, it really needs to get rid of its toxic state government!
I can already see significant movement in the Melbourne metro numbers…my guess is advanced investors/big money are tapping into the Melbourne market already!
A change in state government will be a very big step to improve property prices
Melbourne market is adjusting to the new investing landscape in light of the Victorian government changes around taxes and tenancy laws.
Markets tend to overdue adjustments to the improved conditions on the upside and similarly adjustments to the negative conditions on the downside.
As a result, we are likely to see Perth, Adelaide and Brisbane to overdo on the upside and Melbourne market will over do to the downside.
That may end up in a situation where SA and WA median prices overtake VIC before we see "the sleeping giant " wakes up.
I would give Melbourne another 2-3 years before it gets going again.
I think there's going to be quite a few people that agree with you on that mate!
Thanks for the great content! In my opinion, Perth will perform very well for at least the next 3-4 years, while Melbourne is likely to remain sideways for 1-2 years. If anyone is considering buying in either of these markets right now, they should invest in Perth. In a couple of years, they can sell that property and buy in Melbourne when it starts performing. I strongly believe we are at the bottom of the cycle in Melbourne, but as you mentioned, there are many factors that aren't encouraging investors to come in, and prices are flat. More supply and less demand do not drive prices higher.
Great episode and great guest, thank you. Please have him back. I just bought my first IP and it's in a very nice suburb in Melbourne, so I enjoyed this discussion especially 😅😂😊
Thanks mate! I’m sure we’ll have Mike on again in the future 😊
Melbourne has a whole new city suburb being developed called Cloverton, this will accommodate new homes for 300,000 people. Long term planning for Melbourne is to continue to create 5 major hubs around the city edges.
It'd be interesting for us to unpack the majority dwelling types in this new area to see how it could likely affected housing prices of established properties nearby.
@@pizzaandproperty1246 exactly my point. Geelong is quiet also traditional investor suburbs such a Corio are still sitting with extra stock. Had an agent tell me blocks of land are just being handed back. Increasing talk about a recession worse than 2008 coming....global. Florida is flattening. The same market behaviour as described in The Big Short is occurring again...not possibly going to happen....is happening. Infact there are people getting their money out of banks now. ...interesting times!!
There’s always people talking about things about to go belly up, and every now and then they’re right! But I very rarely meet one of these people that does well investing they make more money off telling you how “x” market is about to drop, even a broken clocks correct twice a day
@@pizzaandproperty1246 I hear you however the market has contracted significantly. The lifestyle market is not selling. Also many investors are spruking the amazing buys here and there. Even the boasting about the Brisbane market. Has anyone checked the flooding of their prospective buy?? 70 percent of Australians experienced extreme weather events in 2022 and the direct impact on property and prices and insurance is financially life changing for individuals and communities.....I look at all the reports that come out and immediately check the suburb for flooding. It's is a very very good reality check before buying.
As for a financial crisis....just have to wait and see..
Thank you so much for these videos, even though I am only 16 I glean every scrap of info I can and can’t wait till I can start my own portfolio
I think you did better with this episode. Some small side tracks. But generally well-reasoned and approached the theme of Perth vs Melbourne from different angles
Thanks mate glad you like it, we made it just for you 😉
Im just so happy that houses in perth are nearly triple what they were only 5 years ago. Im just so happy thay my house has nearly quadrupled in value while people that live here have been priced out and some are living in their cars. Wooooohoooooo 🎉🎊🎉🎉🎊🎊🥂 time to celebrate
First time watching, this was bloody brilliant, answered every question I had about trying to time Melbourne and Perth. Subscribed.
Thanks mate Welcome aboard 🙌🏼
"Now we talk"!
New home construction in Vic is also relatively high compared to other states
The challenge is the laws in vic, whether it be taxation, undue balance towards tenants rights etc, will be a big hurdle for liberals to repeal when they get in. Also the last decade has had so much “infiltrate the institutions” by the left the public service will fight tooth and nail to keep up the communist agenda. Nothing is irreparably fucked but vic is pretty cooked! I’ve sold tons of property in vic in the last few years and also relocated my family to another state. I want my kids to know the difference between a boy and a girl lol.
When you say you've sold tons of property do you mean as a selling agent or your own?
@@pizzaandproperty1246 my own. Land tax went through the roof, saw the writing on the wall for the economy and the sector, time to reallocate capital. Plus buying a nice ppor in one of Sydney’s most expensive suburbs needed a few melb properties sold to fund that ha! But all good things come at a price.
@@trogdortheburninator8149look up the NSW Planning Reforms building in 4-8km rung around activity centres
Has there been a play in the first buyers to buy in Perth and then rent in Melb. The yields suggest you get an upgraded property in Melb due to the yield difference. Particularly given the quality of suburbs you can be in within Perth at the median price. Vs this in Melbourne
Not sure I understand the question?
There is somewhere in between negative gearing and the government having to provide the rentals, many countries around the world, like England/UK, do not have negative gearing and there are plenty of people investing in property, it's just you know that you can't offset against your income tax, would this hold back inflated house prices? It's so expensive in Australia....
Not sure houses prices in the UK are that much better than Aus, the link below is about 10 months old now but still a good reference point
www.finder.com.au/international-money-transfers/average-property-price-by-country
I was at a gathering on Sunday where discussion was going on about how investors are letting go of their land deposits cause of taxes and developers in Ballarat area making up false advertising about very few lots available!
That sounds awful for those buying!
I thought Frankie Boyle was discussing Australian property prices right there.
Haha I feel Mikes found a new part time job as a Frankie Boyle impersonator 😂
@@pizzaandproperty1246 the inflating of assets and the socialist policies like negative gearing have been a trade off that only the older generation can enjoy. If Mike can say that in a Scottish accent he’s got it covered haha
If Labour gets booted out at the 2026 Vic state elections, Melbourne will bounce back with a vengeance .Still 28 months away .Might go up a bit when interest rates drop by 1% next year but I wouldn't touch it with a ten foot pole. Construction industry is in turmoil in WA and it will fly for another 2 years .Will stagnate a little bit after that but this times boom is not because of mining .If anything , mining is not doing great in the last 12 months but makes no difference .Economy is more diversified than 10 years ago .This is a watershed moment in Perths property history. It will go through peaks and troughs but fundamentally Perth and WA's economy are very sound . If anything , Adelaide's median has no business to be where it is , way overvalued as there are no fundamentals for a city with 1 million lesser people than Perth.
Victoria has the highest debt compared to any other state. To address this, the government will cut infrastructure & other spending to prevent the debt from worsening. This will impact jobs and could potentially limit future population growth in the state, which, in turn, may also limit housing price growth due to decreased demand. This is entirely my opinion.
Fixing their debt position is absolutely a big part of the state getting back on track
I have an IP in Perth . My plan is to sell it then buy in melbourne.....
When will be that perfect day to sell then buy......
One day looking back ill be able to say the exact day but with no time travel option ill have to make an educated guess
My current plan is to sell perth late this year. Sure i may miss that last 5-10% run but since im looking at a higher price point in Melbourne its more important for me to get in before it moves too much
I'm looking at the same strategy, but timing it will be a challenge
I think property investors who are buying now should also consider climate change predictions. In 10-20 years, in my opinion, that would be a major factor to decide where people want to live.
interesting point, so you wouldn't buy esplanade property?
@@pizzaandproperty1246 I would take elevation above sea level into consideration, along with risk of flood and extreme heat.
@@yiukinsnon factor
Maybe you’ve been brainwashed?
Thumbnail should be *too
Thanks Jason we appreciate your eagle eye!
Did Frankie Boyle get a new job?!
😂 i can Kinda see it if I squint and look at Mike
Melbourne has further to fall - its in decline as a city and sentiment is poor!
This is flawed at the core especially when he says multiply 700k by 11 mil dwellings in Australia to a 3 trillion whatever. Speculation has made average house price to be 700k in the first place. It wouldn't have happened if the govt didn't incentivise speculation.
What location do you invest in property?