To sell an investment property in Melbourne, you need rental income statements, property management records, and tax depreciation schedules to demonstrate yield potential to buyers. You must also provide proof of all acquisition and holding costs for CGT purposes and ensure Victorian tenancy law notices are served if the property is occupied. Proactive building and […]
Real net profit is calculated by subtracting Capital Gains Tax (CGT), land tax, and applicable Victorian levies from the final sale price. Key deductions include the congestion levy for inner-city holdings and the short-stay levy for Airbnb-style properties, while land tax is absorbed by the seller for contracts under the $10.7 million prohibition threshold. Many
Selling now may be prudent for investors facing unsustainable negative cash flow due to Victoria’s high tax burden and recent RBA rate hikes. While structural undersupply supports medium-term value, conflicting 2026 forecasts—ranging from 6.6% growth (KPMG) to a -1.7% correction (ANZ)—create significant timing risk. The Melbourne market is currently navigating a tension between a broader
Yes. Holding an investment property for more than 12 months entitles the owner to a 50% discount on the taxable portion of the capital gain. Additionally, the 6-year rule may allow owners to treat a former principal place of residence as their main residence for CGT purposes for up to six years. The duration of
No, you do not necessarily have to wait for your tenant to leave before selling in 2026. While selling with a tenancy in place requires navigating Victorian tenancy laws regarding access for inspections and notice periods, vendor confidence has improved significantly through late 2025 and into early 2026 (Woodards Real Estate, Raine & Horne). However,
Capital Gains Tax (CGT) is applied to any profit made on the sale of an investment property in Melbourne, added to your assessable income and taxed at your marginal rate. The CGT event occurs when the contract of sale is signed, not at settlement. However, strategies exist to minimise CGT, including utilising capital losses, offsetting
If you’re considering selling an investment property in Melbourne in 2026, proactive planning is crucial. Increased property taxes in Victoria, combined with recent RBA rate hikes, are influencing investor behaviour and increasing supply in some areas. While vendor confidence improved in late 2025, recent rate increases have introduced caution. A well-considered strategy, focusing on presentation
