34 Peugeot Pursuit, Mill Park, has been sold by its landlord owner — who has now divested three rentals in response to state government policies and taxes.
A Mill Park house has surged $85,000 past its reserve as a family looking for their next step up the property ladder permanently took it off the rental market.
The 34 Peugeot Pursuit, Mill Park, home had been held by its landlord owner for the past 19 years.
But with a new wave of rental reforms coming through earlier this year, expectations of federal government changes to Capital Gains Tax discounts in the May budget and ongoing financial hits from past regulatory reform as well as heightened land tax, vendor Maria said she’d had enough.
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“It’s just crazy,” she said.
“We work hard all our lives, but we feel we are being penalised for working hard and trying to invest in our future — so we won’t be a burden for the government. But we are being penalised with never ending taxes.
“And with the regulations for the rental market, it’s been too much.”
Noting that it felt like they were losing control of their properties, she said the plan was to consider investing interstate.
And she’ll have a bit more to invest than expected.
Ray White South Morang’s Nick Petrovski said the home had its reserve set at $830,000, the top of the $770,000-$830,000 price guide, but ended up selling for $915,000 amid strong competition.
The home had been a rental for almost 20 years.
Refurbished, neat and tidy, it has been sold to a family upsizing in the area.
Mr Petrovski said with five bidders in the crowd, it had been primarily fought out between three parties — though initially had struggled to get going.
It was only after a break to check in with the vendor that the buyers “thawed out” and the auction surged ahead.
The agent said while the sale was head and shoulders above most similar recent sales, there were two factors that might have helped it along.
The first was that the vendors had spent a bit of money refreshing the home ahead of its sale.
The second was that buyers might have been looking to get in before the next interest-rate rise, potentially occurring when the Reserve Bank meets this Tuesday.
Mr Petrovski added that while rate moves were a part of the market, home sellers later this year might need to be realistic with their expectations when the government began forcing them to disclose reserve prices ahead of auction.
The home has a light and bright decor.
An open-plan kitchen and dining zone at the rear of the house.
Maria added that government changes had already driven her to sell two other investment properties, and while she appreciated the government needed funding from somewhere — it felt like investors were being penalised.
She noted that the point of their investing had been to ensure a retirement that didn’t need government funding, as well as to ensure they could help their kids get started in life.
But they’d funded the investing via mortgages that had cost them significant amounts to pay off, and were just an ordinary mum and dad.
Despite this, Maria said she was thrilled for the property’s new owners.
“Everyone needs a chance to make a start,” she said.
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