Ep. 207 - The Melbourne Deals: Real Numbers Behind Our Rooming House Builds

The RBA has lifted rates for the fourth time this year, taking the cash rate to 4.6%. So is the party over for property investors? Neil doesn't think so, and in this episode he explains why. He starts with what the latest hike means for your repayments and your borrowing power, and why the RBA isn't trying to crash the market. He then looks at what's really happening in Perth. Rental listings are falling as investors step out, sales stock is up but still well short of a balanced market, and the fundamentals haven't changed. Then comes Melbourne. It's a declining market on the property clock, builders have capacity, and sites are easy to find. Neil explains why he thinks it's the next market to move, and why it could move fast when it does. Neil also walks through three real Melbourne rooming house deals, with land, build, projected valuation, refinance and cash flow for each. One of them is a subdivision with two nine-bedroom builds on a single corner block. All three are valued on income at a 7% cap rate rather than on comparable sales. In this episode: What four rate hikes mean for a $600K and an $800K mortgage Why borrowing capacity has fallen 8 to 9% this year REIWA rental listings and why the vacancy rate figures don't agree Perth sales stock versus what a balanced market really looks like The Herron Todd White property clock: where Perth and Melbourne sit Victoria's rooming house planning exemption (clause 52.23) How we choose suburbs: essential workers, employment hubs, and keeping rent under 30% of income Three worked Melbourne deals, from 70% to 80% refinance The risks, and how we model for them General information only, not financial advice. All deal figures are worked examples based on estimated valuations and room rates. Past examples are not a guide to future performance. Seek licensed advice.