Selling through a trust or company typically indicates an investment asset, which in 2026 is heavily influenced by Victoria’s high tax burden and compressed net rental yields (Forge Property, February 2026). While the legal process requires specific entity documentation, the market process is currently shaped by unsustainable negative cash flow and new short-stay levies (SRO Victoria).
Properties held in trust or company names are currently facing a convergence of tax pressures and regulatory changes. These vendors are increasingly divesting to crystallise gains from the 2017–2020 period as holding costs rise.
The impact of Victoria’s tax burden
Victoria currently has Australia’s heaviest property tax burden in 2026. This includes the cumulative effect of land tax increases, VRLT expansion, and the congestion levy, which has materially compressed net rental yields for inner-city investors (Forge Property, February 2026).
Short stay obligations and levies
For trust or company-owned properties used as short-term rentals, the Short Stay Accommodation Levy is a primary consideration. From 1 July 2026, non-PPR properties face an increase in the fixed charge component of the Emergency Services and Volunteers Fund Levy (SRO Victoria).
Choosing the sale method for investment entities
Private sales are often preferred for trust-held properties that are currently tenanted, as inspection coordination is more complex. This approach is also culturally dominant on the Mornington and Bellarine Peninsulas and is favoured when the property appeals to a narrow buyer demographic.
The pass-in risk
With clearance rates in the low-to-mid 60%, approximately 35–40% of Melbourne properties pass in at auction. Buyers in this environment tend to anchor their offers below the reserve, operating on the assumption that the vendor’s position is weaker than the agent’s framing suggests.
Frequently asked questions
When should I choose private sale over auction for an investment property?
Private sale is preferred when a property is tenanted and inspection coordination is complex. It is also the culturally dominant method on the Mornington and Bellarine Peninsulas. Additionally, private sales offer more flexibility to negotiate terms, which is beneficial for properties appealing to narrow buyer demographics or interstate purchasers.
How long does it take to sell an investment property in Melbourne?
A typical auction campaign takes four weeks. For private sales, well-priced properties can sell within one to two weeks, while those requiring price negotiation typically take four to eight weeks. Settlement in Victoria is generally 30 to 90 days, with 60 days being the most common standard (Cotality March 2026).
What is the Short Stay Levy for non-PPR properties?
The levy applies to short-stay bookings via platforms like Airbnb. From 1 July 2026, the fixed charge component of the Emergency Services and Volunteers Fund Levy increases for non-PPR properties (SRO Victoria). Hosts above $75,000/year must lodge quarterly, while those below this threshold lodge by 30 January.
Why are so many investors selling their properties in 2026?
Sellers are reacting to Victoria’s heavy property tax burden, including land tax and VRLT expansion. RBA rate rises from 2022–2023 created unsustainable negative cash flow, while tenancy law reforms reduced landlord flexibility. Many are now choosing to crystallise gains made during the 2017–2020 period.
Questions to ask your agent
- How does the current pass-in rate of 35–40% affect our reserve price strategy for this entity-held property?
- Given my property is tenanted, will a private sale campaign better manage buyer access and sentiment than an auction?
- Based on current Cotality data, how do the days-on-market for investment assets in my specific corridor compare to owner-occupier homes?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.