Signs of a market bottom include the absorption of divested investment stock by owner-occupiers and a 0.2% monthly growth rebound in January 2026 (Cotality). Annual dwelling value growth reached approximately 5.4% to early 2026, while dwellings are selling slightly quicker than the decade average (March–April 2026). The Melbourne market currently operates at two speeds. While
The six-year CGT rule allows a homeowner who moves out of their principal place of residence (PPOR) to continue treating it as their main residence for capital gains tax purposes for up to six years. This applies to a Melbourne investment property in 2026 provided the owner does not nominate another property as their PPOR
Whether to sell or hold depends on your gearing and tax tolerance. Holding is supported by long-term structural undersupply and a KPMG projection of 6.6% house price growth for 2026, while selling is driven by Victoria’s heavy tax burden and a rise in listing competition (Raine & Horne). The decision to divest or refinance is
Find the right agent by verifying they have sold comparable properties in your suburb within the last 6–12 months and interviewing at least three candidates. Request written CMAs and a clear marketing plan, then assess their responsiveness and the quality of their active buyer database to ensure they can generate genuine competition in a price-sensitive
Selling a rental involves managing Capital Gains Tax (CGT) liabilities and tenant legal rights, whereas a primary residence is generally exempt from CGT. In 2026, investment sales are heavily influenced by Victoria’s high tax burden and compressed net rental yields (Forge Property, February 2026). Selling an investment property in 2026 requires a shift from lifestyle
Selling vacant is generally more advantageous in 2026 because the primary buyer pool consists of owner-occupiers, while Victorian tenancy law reforms have reduced landlord flexibility. However, owners of positively geared properties may choose to hold for a projected recovery in 2027 (ANZ, Domain). The decision to sell vacant or tenanted now hinges on the shift
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
