Melbourne

Cafes, culture and trams are probably the first few images that pop up when one talks about Melbourne, the state capital of Victoria and the second-most populous city in Australia. The city consists of 31 municipalities. As of June 2017 it had a population of over 4.8 million, approximately 19% of the national population

Melbourne rates highly in education, entertainment, health care, research and development, tourism and sport. As such, the EIU (Economist Intelligence Unit) ranked Melbourne as the World’s Most Livable City for 7 years in a row (between 2011 – 2017), only recently overtaken by Vienna.

Melbourne has a highly diversified economy with particular strength in finance. In the 2017 Global Financial Centres Index, Melbourne was ranked as having the 21st most competitive financial center in the world. Two of the big four banks, NAB and ANZ, are headquartered in Melbourne.

Melbourne is also Australia's second-largest industrial centre. It is the Australian base for a number of significant manufacturers including Boeing, truck-makers Kenworth and Iveco, Cadbury as well as Bombardier Transportation and Jayco, among many others.

Melbourne has now attracted the largest proportion of international overseas immigrants, outpacing Sydney's international migrant intake on percentage, along with having strong interstate migration from Sydney and other capitals due to more affordable housing and cost of living.

In recent years, even suburban areas of Melbourne such as Melton, Wyndham and Casey, have recorded the highest growth rate of all local government areas in Australia. It was reported that if the trend continues, Melbourne could overtake Sydney in population by 2030.

CityLink Tulla Widening
The AUD$1.3 billion CityLink Tulla Widening project is a much needed upgrade of the CityLink and Tullamarine freeway corridor from Melbourne Airport to Power Street.

Creative Industries Strategy
Victoria's first creative industries strategy puts creativity at the forefront of the state's future growth, prosperity and liveability, with more than AUD$115 million in new funding.

Future Industries
The AUD$200 million Future Industries Fund supports high growth industry sectors that are critical to securing Victoria's future as a competitive, innovative and outward looking economy.

High Capacity Metro Trains Project
The AUD$2.3 billion High Capacity Metro Trains project is building 65 bigger trains to improve connectivity and efficiency of transport.

West Gate Tunnel Project
The West Gate Tunnel Project is Melbourne's much needed major second river crossing, delivering a vital alternative to the West Gate Bridge, quicker and safer journey, and removing thousands of trucks from local roads.

1. High Stamp Duty
The stamp duty in Victoria for properties between AUD$130,001 to AUD$960,000 is AUD$2,870 plus 6% of the dutiable value.

2. Additional Duty for Foreigner
Foreign investors now have to pay 7% on top of standard stamp duty.

3. Vacant Residential Property Tax
The VRPT is applicable to properties that are left vacant for more than a total of 6 months in a year, calculated at 1% of the property's capital improved value.

4. Restriction of Foreign Mortgage
Since 2016, foreigners are finding it increasingly difficult to secure a home loan after major banks curbed lending to non-residents. However, it is still possible to obtain mortgage from licensed private lenders in Australia, which is a common practice.

5. The Downturn
If you search for Australian properties in the news today, it is not hard to notice the overall sentiments are less robust. There are news about the weakening economy and oversupply of properties, which is the result of the market cooling measures imposed by the government since 2 years ago. It is important for investor to be critical at this point in time and understand that real estate is a long term investment. If chosen wisely, a property can still make money even at the worst of time.