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Emergency Update Regarding Investing In Melbourne!!
I have an emergency update regarding investment into Melbourne. There are some proposed regulation changes which can make it harder to hold property.
Finding Investment Suburbs For Under 450K
This week, it is a little bit different. I have an emergency update regarding investment into Melbourne. There are some proposed regulation changes which can make it harder to hold property in this state.
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
All Suburbs | Melbourne | - |
Proposed Regulation Changes - Link
Now these regulation changes are still in its consultation phase however these will most likely come into play. The proposed changes will come into effect on 30th October of 2025 which is close to an year away. These changes included added compliance to blinds, ceiling insulation, cooling, draughtproofing, heating and shower heads.
The Victorian government have brought in these new proposed changes as minimum rental standards for “cleanliness, privacy, security and amenity for rental properties” and will form part of the Residential Tenancies Regulations 2021 & 2023. These additional living standards will help the Victorian government further towards its target of net zero emissions by 2045.
For a renter the new standards will significantly enhance the quality and comfort of rental housing, while also reducing living costs. These new proposed standards should assist renters reduce their energy bills, improve health and wellbeing & reduce environmental impacts by moving away from gas appliances.
But what does this mean for landlords…well additional costs
Now as a landlord it is your ethical responsibility to provide a liveable home for renters to live, free of mould, working appliances etc. And largely all these additional regulation changes have a financial impact which is tax-deductible meaning they can get a portion of the money back from the Australian tax office.
The Victorian estimates that the landlords will require an additional $5,519 for the new compliance the largest being ceiling insulation and temperature management. Landlords aiming to make improvements before October 2025 can receive Victorian Energy Upgrade subsidies, but only for voluntary upgrades. This financial support will be unavailable once the minimum standards become mandatory.
The cost breakdown is as below:
Ultimate Verdict
Ultimately as an investor you need too and can absorb these additional costs, and this compliance is a good thing for renters ethically speaking. However I believe the timing is incorrect. Landlords are already mass exiting the Melbourne market due to higher interest rates, poor state government management and rising costs and these will further flame the problem. Additionally with investors leaving its causing rent prices to skyrocket as rental supply continues to deplete month after month (while interstate immigration is high I might add). In the end these changes will cause Melbourne house prices to stagnate for the foreseeable future but in the short term rental yields are improving month on month.
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Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.
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