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The Great Australian Housing Fix That May Fix Nothing At All

Thu, 23 Apr 2026 05:10:36 GMT

By Melly Shute

There are few things more reliably Australian than trying to solve a complicated national problem with a tax tweak and a press conference. This week’s idea is the possible removal of the capital gains tax discount for investment properties, a proposal that has all the ingredients of a proper local political feast: investors clutching their spreadsheets, first home buyers clutching their despair, and renters clutching whatever remains of their bond.

For those playing along at home, the CGT discount is the tax rule that softens the blow when an investor sells a property for a profit. Remove it, and suddenly the tax bill gets chunkier, triggered at the contract date no less, which, in property terms, is rather like being told the music stops before you have even put the champagne back in the fridge.

The theory behind the proposal is easy enough to understand. Plenty of younger voters are furious that housing feels less like a basic human need and more like a competitive reality television show. They look at current tax settings and conclude, not unreasonably, that the deck has been stacked in favour of investors for years. So the pitch is simple: make property investing less attractive, cool investor demand, and help owner occupiers finally grab a front door of their own.

It sounds fair, right? It even sounds like the sort of thing that would look terrific in a social media tile with a pastel background and the word “affordability” in bold. But property policy has a nasty habit of refusing to remain inside the brochure.

If the discount were removed, some investors would almost certainly rush for the exits earlier than planned. Others, faced with a bigger tax hit on sale, might do the exact opposite and cling to their investment property like it is the last trolley at Aldi on a Saturday morning. In either case, the rental market could tighten further. And in a city where finding a rental already feels like auditioning for a role in a low budget dystopian drama, that is not exactly uplifting news.

That is the great comic twist in all this. Reforms designed to help renters become buyers may, in the meantime, make life harder for renters who are still renting. It is a bit like announcing a plan to improve public transport by setting fire to half the tram stops and promising that everyone will appreciate the efficiency later.

Of course, before anyone starts panic selling their investment flat or composing a farewell poem to negative gearing, it is worth noting that this kind of major tax reform almost never arrives in its most dramatic form. Australia talks a very big game on tax reform, right up until somebody notices that voters own things. Then the bold revolution often becomes a consultation paper, followed by a review, followed by a carefully staged retreat dressed up as “targeted recalibration”.

So if change comes, it is far more likely to creep than charge. Grand plans in this area tend to be trimmed, diluted, grandfathered, workshopped, and eventually introduced in a form so cautious it practically apologises for existing.

Still, the debate does reveal something important. Housing policy has become a national argument conducted in increasingly desperate tones by people who all want broadly the same thing: secure housing that does not require either inherited wealth, saint like patience, or a side hustle selling artisan candles online.

And that, perhaps, is the real story. Not whether one tax discount survives intact, but that we have somehow built a system where every proposed fix threatens to make somebody else’s misery slightly worse. Go figure.

Our Approach to Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF)

Thu, 02 Apr 2026 05:33:36 GMT

By Melly Shute

From 1 July 2026, changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws mean that law firms are required to complete additional identity and risk assessment checks before providing certain services. These reforms are designed to protect the financial system and prevent misuse by criminal organisations.

If your matter involves a “designated service,” such as a property transaction or certain business or trust arrangements, we are legally required to verify your identity, understand the nature and purpose of the matter, assess any associated risks, and maintain proper records.

Depending on your circumstances, you may be asked to provide photo identification, proof of address, documents relating to companies, trusts or SMSFs, and information regarding ownership or source of funds.

Our process is designed to be simple, secure, and efficient. Once we commence engagement, you may receive a request via our trusted verification platform to provide the required information. Most clients complete this process quickly, allowing us to proceed without delay.

We take privacy and data security very seriously. Your information is used solely for compliance and onboarding purposes and is handled in accordance with Australian privacy laws and our professional obligations. We utilise secure third-party technology to verify identity and do not retain copies of your identification documents.

We will continue to update this page as further guidance becomes available.

$735K Waterfront Shack Earning $70K Hits the Market – Victorian Short Stay Property Investment Insights

Thu, 05 Mar 2026 22:35:22 GMT

A $735,000 waterfront shack earning $70,000 per year has hit the market, according to realestate.com.au . Coastal lifestyle, strong headline income, and short stay appeal make this type of property attractive to investors in Victoria. But for anyone considering a short stay property investment, understanding the full legal and financial picture is critical. A property that looks profitable on paper may have hidden costs, compliance obligations, and risks if not carefully assessed.

Gross Income Is Not Net Profit

The $70,000 figure is gross income, not net profit. Investors must account for property management fees, maintenance, insurance, council rates, land tax, and utilities. Even before other costs, gross earnings can be reduced significantly. Understanding true profitability is essential when evaluating short stay properties in Victoria.

Short Stay Income and Tax Implications

Income from short stay rentals contributes to your taxable income. This can affect tax obligations, borrowing capacity, and overall investment return. Consulting with an accountant or financial adviser familiar with Victorian property law and short stay taxation ensures your investment strategy aligns with your goals. Proper planning helps you maximise returns while remaining compliant.

Council Approvals and Registration

Many popular Victorian holiday destinations allow short stay accommodation, but registration or permits are often required. If a property is not properly registered, councils can issue fines or enforcement notices. Confirming that a property meets all local council requirements protects your investment and avoids unnecessary risk. Regulatory compliance is a key step in due diligence.

Management and Platform Fees

Professional property managers make short stay rentals easier, but fees are significant. Management companies typically charge around 20 percent plus GST, while platforms like Airbnb charge about 15 percent. Combined, this can reduce over 30 percent of gross earnings before other operating costs. Factoring these costs into your feasibility assessment ensures you understand the true return.

Aligning Your Investment Strategy

A short stay property can deliver strong returns, but only if it fits your investment strategy. Your strategy should define your target property type, location, expected income, risk tolerance, and approach to compliance. Every purchase decision should support this strategy. Getting the right advice that aligns with your strategy is essential. It ensures you understand the opportunities and risks and allows you to make decisions with confidence.

Waterfront Investment Property Advice

Properties like this Tasmanian shack show the appeal of waterfront short stay investment in Victoria. High headline returns can be enticing, but smart investors look beyond gross income. True profitability depends on management fees, platform charges, ongoing expenses, tax obligations, and council compliance. Approaching the investment strategically and seeking expert advice helps buyers make informed decisions that balance lifestyle appeal with financial performance. Understanding the full picture turns a headline-grabbing property into a sustainable, profitable investment.

Short stay property investment in Victoria offers exciting opportunities, particularly in coastal and holiday locations. Strong returns require careful planning, legal and financial insight, and alignment with your investment strategy. Properties that generate $70,000 per year can be highly profitable, but only when all costs, obligations, and risks are understood. With the right strategy, advice, and preparation, a waterfront short stay property can be more than just a headline – it can be a rewarding, well-managed investment.

The Rise of the Walk Up: Why Old Apartments Are Outsmarting Houses in Victoria Words: Melly Shute

Wed, 04 Mar 2026 01:58:00 GMT

Who knew that the slightly shabby, no lift, 1960s and 1970s walk up apartment would become the star of Victoria’s property market? While everyone has been chasing houses with white picket fences, these old flats are quietly outperforming detached homes in price growth, proving that sometimes smaller, simpler, and cheaper to run really does win.

Recent data shows unit prices in Victoria have been climbing faster than houses in many suburbs. Some forecasts predict apartment prices could rise by seven per cent this year, slightly ahead of house price growth. For first home buyers, the maths is simple. House prices have risen nearly seventy per cent over five years while units have grown about thirty per cent, meaning entry level buyers can get a foot in the door far sooner with an apartment.

And not just any apartment. The old walk ups are enjoying a renaissance thanks to low ongoing costs, spacious floor plans, and minimal maintenance. Unlike new towers with huge owner corporation fees, these classics are affordable to run, making them attractive for budget conscious buyers and young families alike.

The appeal goes beyond first home buyers. Boomers looking to downsize are drawn to the convenience and low maintenance, while investors love them for steady rental returns. Many of these apartments are already set up for tenants, with functional layouts and inner city locations that remain highly desirable.

Agents and developers say demand is rising because buyers want inner city convenience without the house price headache. Even regional markets such as Ballarat are seeing unit prices outperform houses as affordability pressures mount.

So is this a bubble or the start of a long term shift? Opinions differ. Optimists cite strong fundamentals and steady buyer interest. Skeptics worry about potential oversupply and economic cooling. Either way, for now, these old apartments are proving that charm, space, and a low bill can beat fancy facades and sprawling lawns.

For buyers who dismissed apartments, the message is clear: sometimes the smarter path to property ownership is up a few flights of stairs.

admin@mlslegal.com.au

Victoria’s rental reforms: Protecting tenants … and accidentally evicting landlords

Sun, 08 Feb 2026 23:29:42 GMT

Article posted by innercitynews.com.au

Melly Shute | 16th January, 2026

Victoria has never been shy about a rental reform.

In recent years, the Residential Tenancies Act has been amended so often that, at times, it feels less like legislation and more like a subscription service, “features” released regularly, whether anyone asked for them or not.

The intention behind the reforms is clear and, in many respects, admirable: greater security for tenants, improved minimum standards in rental homes, more transparency in the leasing process, and fewer “surprise” terminations.

Reforms address key tenant issues ; no rental bidding, limits on rent increases, stronger rights around repairs and much tighter regime around notices to vacate period. Clearer rules about bonds, including bond transfer processes when tenants change in share houses.

All seems lovely and supportive for the tenants, right? On paper, yes. It reads like a tenant’s dream. In practice, however, the rental market has responded the way markets usually respond when the compliance burden rises and risk increases: it has started quietly moving its pieces off the board.

No rental bidding (and other polite fictions)

Victoria has banned rental bidding, meaning agents and landlords cannot solicit or accept bids above the advertised rent. The policy aim is obvious: stop “auction-style” leasing and bring rents back to something resembling reality.

But bans do not remove competition; they merely change how it shows up. The queue still forms around the block outside the open. The application pack still resembles a small mortgage submission. Tenants are still competing just now in a more courteous manner, with everyone pretending the process is calm and dignified while silently wondering whether offering to water the landlord’s pot plants would breach any regulations.

Higher compliance: the rental is now a regulated product

Minimum standards and compliance obligations have expanded. Some requirements are plainly sensible; safe heating, basic security, functional locks. Others can feel like the property version of assembling flat-pack furniture with instructions written by a committee.

None of this is “free”. Compliance costs money. Administration costs money. Time costs money. And where the consequences for getting it wrong include VCAT disputes, compensation claims, delay, and penalties, many landlords, particularly smaller “mum and dad” investors, are making a simple commercial decision: sell.

Bonds, transfers, and the great administrative shuffle

Bond transfers were meant to reduce friction when tenants change in shared households. In principle, excellent. In reality, it can become a paperwork relay race: a departing tenant wants their money, an incoming tenant is late, and the landlord/agent is caught in the middle trying to keep the bond record accurate while everyone is emailing at 11.47pm.

Again: the reform is well-intended. It is also one more moving part that can go wrong, with consequences.

The punchline: fewer rentals, tighter vacancy, higher pressure

Recent reporting has highlighted what many in the industry have been observing on the ground: landlords exiting the Victorian market in significant numbers, particularly in sought-after inner -city areas. Real estate reporting, citing Homes Victoria bond data, indicates notable declines in active rental bonds in several municipalities since 2017 suggesting fewer rental properties available in locations where people actually want (and need) to live.

At the same time, the broader market remains tight. Nationally, data cited recently put vacancy rates at around 1.7 per cent, and locally many suburbs feel even tighter. When vacancy sits around the 1.5 per cent mark, tenants are not “protected” by reforms in the way policy designers imagine, they are protected in theory while competing in practice.

So, what now?

Rental reform should protect tenants from poor conditions and unfair practices. But if the settings push a critical mass of landlords to leave, the market does not become kinder, it becomes scarcer. And scarcity is famously compassionate only to the very last person who secured a lease.

The difficult truth is that tenant protections and rental supply must be designed together. Otherwise, Victoria risks perfecting the rules for a rental market that no longer has enough rentals in it.

Buying a Shop With a Residence Upstairs, and Café Leases That Make Tenants Cry

Mon, 19 Jan 2026 22:57:08 GMT

Commercial property law can look simple until the paperwork starts talking.

Melly Shute | 16th January 2026

Mixed use property is having a moment in Melbourne. A shopfront with a residence upstairs looks like the dream: income downstairs, lifestyle upstairs, and the smug satisfaction of owning “a little building” in an inner city suburb.

Cafés and hospitality operators are also signing leases in a market where landlords often hold the pen, and that pen is frequently loaded with a clause that effectively says: everything is on you, forever, no exceptions, good luck.

In Victoria, these deals can be excellent. They can also be a trap if GST, outgoings, permits, building services, and lease risk are not nailed down before signing.

This article is a high-level guide to the issues that commonly catch buyers and tenants in Melbourne’s mixed use and café leasing market.

The mixed-use trap: shop downstairs, residence upstairs

The headline risk with mixed use property is that it is rarely one neat transaction. It is usually a combination of a commercial asset, a residential component, and sometimes an existing lease. That means multiple legal regimes and multiple moving parts.

Key issues to identify early include:

GST and the contract structure

GST outcomes can materially change the true purchase price. Whether GST applies may depend on factors such as whether the property is sold as a taxable supply, whether there is a going concern, and the nature of the existing lease arrangements. The contract needs to be drafted to match the commercial deal, not the agent’s brochure summary.

Leasing status and income reality

If there is an existing tenant, the buyer is not just buying bricks and mortar. The buyer is inheriting a legal relationship. The lease terms, rent review mechanism, options, incentives, and make good obligations can affect value more than the paint colour. Lease due diligence is not optional in mixed use purchases.

Outgoings and who pays what

Outgoings are often where the math goes wrong. Council rates, water, insurance, owners corporation charges, land tax, repairs and maintenance, and services can be apportioned differently depending on the lease wording and the actual setup of the building. If there is shared infrastructure, such as water meters, grease traps, exhaust, or shared electricity, the contract and lease must address it clearly.

Finance restrictions and valuation pain

Lenders can be cautious with mixed use properties. Some banks reduce LVRs, tighten serviceability, or treat the deal as specialist security. If there is a tenancy in place, the lease quality can also affect valuation. Buyers should ensure finance clauses, due diligence timeframes, and access to lease documents are practical.

What the contract should say

The contract should clearly deal with GST position, whether it is sold with vacant possession or subject to existing tenancies, adjustment of outgoings and rent, and delivery of complete lease documentation. This is where a proper contract review shifts from nice to have to essential.

Café leases and the everything is on you clause

Hospitality leases can be profitable. They can also be structured so that the tenant effectively becomes the building’s unpaid facilities manager.

Common pressure points include:

Grease traps, exhaust, and services that suddenly become your problem

If the premises relies on grease traps, mechanical exhaust, ducting, or shared services, the lease must state who maintains, repairs, replaces, and upgrades them. The clause to watch is the one that makes the tenant responsible for any compliance, upgrading, or replacement required by law, council, or authority, even where the infrastructure services the building generally.

Permits and council compliance

Food use and trading permits are not automatic. The lease should address who is responsible for obtaining and maintaining permits, whether the landlord warrants any lawful use, and what happens if council imposes conditions that require building works.

Make good and fit out ownership

Make good is one of the most litigated parts of retail and hospitality leasing. Tenants can be required to strip a fit out back to base building, reinstate walls and floors, and remove exhaust and grease infrastructure. Fit out ownership should also be clear. What stays, what goes, and who pays if removal damages the premises.

Assignment, options, and exit strategy

Tenants often assume they can just sell the business and hand over the lease. In practice, assignment conditions can be strict, and landlords can require extensive documentation and guarantees. If there is an option term, the exercise requirements and deadlines matter. The best time to negotiate an exit pathway is before the lease is signed.

How MLS LEGAL assists

MLS LEGAL assists landlords, tenants, and buyers with:

i) Contract review for mixed use purchases, including lease due diligence and GST risk spotting

ii) Retail and hospitality lease drafting and negotiation under Victorian leasing framework

iii) Advice on outgoings, services, compliance responsibility, and make good risk management

iv) Fast turnarounds where a deal needs to be signed but not regretted

Before signing anything

If a shop plus residence purchase looks too clean, or a café lease reads like a motivational poster for personal responsibility, it is usually because the risk has been pushed into the fine print.

A short, targeted legal review can identify the clauses that change the deal, and negotiate the wording that keeps the risk where it commercially belongs.

To arrange a commercial contract or lease review, contact MLS LEGAL

Reserve disclosure is coming: what inner‑city buyers need to know now

Tue, 02 Dec 2025 00:50:26 GMT

Article posted by innercitynews.com.au

Melly Shute | 1st December, 2025

Victoria plans to require reserve prices to be published seven days before auction from 2026. Here is how that interacts with existing underquoting rules, what Consumer Affairs Victoria’s data shows and how inner city buyers should calibrate due diligence and strategy now.

Victoria’s auction rules are changing. The Victorian Government announced on November 19, 2025, that legislation will be introduced in 2026 to require publication of a property’s reserve price at least seven days before an auction or fixed date sale .

The Minister for Consumer Affairs has framed this as an Australian first intended to curb illegal underquoting and reduce wasted buyer effort. Until the Bill passes, the existing underquoting regime remains in force.

Inner city buyers should anchor their approach in two things. First, how the current Statement of Information requirements work. Second, what reserve disclosure will and will not change.

Current requirements in brief: Agents must provide a Statement of Information with a reasonable estimate of selling price, supported by recent comparable sales, and either a single figure or a range with a maximum spread of 10 per cent. Advertising below the bottom of the current estimate is prohibited. The estimate must be updated when new, materially relevant sales come to hand.

Consumer Affairs Victoria’s underquoting taskforce reports more than 5000 complaints since late 2022, more than 200 infringements issued and a combined total of more than $2.3 million in fines, alongside multiple court proceedings for serious breaches. As of November 2025, the maximum penalty for underquoting offences under the Estate Agents Act is $48,800, with potential exposure to Australian Consumer Law penalties up to $2.5 million for individuals and $50 million for corporations in egregious cases.

Comparable sales guidance has also tightened. In November 2025 Consumer Affairs updated its checklist so that comparables should align on age and architectural style, renovation status, floor and land size, special features, zoning, school zones and proximity to key local amenities. In inner Melbourne, that means comparisons should be between like terraces or apartments on genuinely similar land sizes and renovation levels, not merely the nearest three addresses.

What reserve disclosure means if and when it commences. Publishing a reserve seven days out provides a floor, not a ceiling. Early pilots have shown homes still selling above disclosed reserves. A Woodend auction with a disclosed reserve of $675,000 sold for $783,000, about $110,000 above the reserve, with underbidders reporting that disclosure nonetheless improved confidence. Critics caution that strategic behaviour may persist if reserves are set conservatively and then adjusted, or if vendor bids are used. The draft Bill and any regulations will be important on whether and how reserves can be revised within that seven-day window, and what evidence must support a change.

For buyers in Carlton, Fitzroy, Parkville and East Melbourne the practical playbook is straightforward. Treat the top of any price guide as your starting point rather than your target and stress test your limit against the most recent truly comparable sales on your target streets. Direct your due diligence spend to properties where those sales indicate you are competitive. Use contract reviews to identify issues that affect value and risk in the inner city such as easements, owners’ corporation liabilities, heritage and planning overlays and proposed works. Where the legal and finance positions are sound, a pre-auction offer can be efficient. If reserve disclosure is in force by the time, you are bidding, use the published reserve as a threshold test for how much effort and cost to invest in that campaign.

Two closing points on timing and expectations. The reserve disclosure laws are not yet in effect. The government has committed to introduce the Bill in 2026. Until commencement is proclaimed, the present rules govern campaigns and auctions. Even after commencement, disclosure will not eliminate competitive bidding or market momentum. It should, however, reduce the number of campaigns that buyers pursue without a realistic prospect of success and improve the quality of conversations about price.

Commercial subleasing in Victoria: quick wins, real risks, and how to structure them

Wed, 26 Nov 2025 05:56:36 GMT

Melly Shute | 26th November, 2025

Commercial subleases can be fast, cash-positive transactions when structured correctly. They are also fertile ground for disputes if consent, rent waterfalls, and make-good are not nailed down at the outset. For Victorian landlords, tenants and would-be subtenants, this is a concise guide to getting a sublease done quickly while protecting your position.

A well structured sublease also lets two businesses grow together. The head tenant converts surplus space into income and shares fixed costs such as utilities and cleaning on a fair, transparent basis. The subtenant secures a fitted space in a prime location with lower upfront capital and faster commencement. When the permitted use, access, branding rights, services and trading hours are aligned, the businesses can cross refer customers, share foot traffic and collaborate on promotions without operational friction. Clear rules on noise, deliveries, storage and shared equipment prevent conflicts, so both parties benefit from a stable, predictable arrangement that supports revenue growth for each.

Start with the head lease . Most Victorian retail and commercial leases either prohibit subletting or require landlord consent on reasonable grounds. Many also impose preconditions such as no existing defaults, a minimum rent covenant from the subtenant, and recovery of the landlord’s legal costs. Before you negotiate commercial terms, read the alienation clause, any assignment and subletting schedule, and any prohibition on parting with possession. If the premises is retail, the Retail Leases Act 2003 (Vic) will usually continue to apply to the sublease if the sublease is for all or part of the retail premises; this affects outgoings disclosure and some rent review mechanics.

Secure landlord consent early and in writing. A short heads of agreement with the essential terms will streamline consent: identity of the subtenant, permitted use, sublease area with a marked plan, rent and outgoings, term and options, works, make-good, and any incentives. Provide basic financials or references for the subtenant to shorten the landlord’s diligence cycle. Align the sublease expiry to fall at least one day before the head lease expiry to avoid accidental holding over beyond your own rights.

Match the permitted use and compliance obligations. The subtenant’s use must be allowed under the head lease and planning scheme. Confirm whether the use triggers building code upgrades, occupancy permits, trading hours limits, or signage controls. If you are carving out part of the premises, check whether services can be separately metered or whether a fair apportionment method is required for electricity, HVAC and cleaning.

Protect the rent waterfall and default remedies . The sublease should make clear that head rent is paid first from any sub rent received. Include an express right to terminate the sublease if the head lease ends or is forfeited, and require the subtenant to attorn to the head landlord if the landlord elects to keep them in possession. Obtain a personal guarantee or bank guarantee that mirrors the security under the head lease, with aligned claim periods. If you offered incentives to your head landlord, ensure the sublease does not accidentally pass those on unless intended.

Get outgoings and make-good right . Tie the subtenant’s outgoings contribution to the same definitions and exclusions as the head lease and include a clear method for part-premises apportionment. Require the subtenant to remove their works and reinstate, subject to any landlord-owned base building or fit out items. If you inherited an existing make-good obligation under the head lease, ensure your sublease recovers those costs from the subtenant on exit.

Document works and base building interfaces . No works should start without landlord approval where required by the head lease. Set who pays for approvals, code compliance and rectification. Record existing condition with a photo schedule to reduce end-of-term disputes.

Mind the Retail Leases Act . If the sublease is a retail sublease, provide a disclosure statement to the subtenant on time and ensure rent review clauses comply with the Act. Remember key rules such as prohibition on recovery of certain landlord costs and restrictions on ratchet clauses.

Three common pitfalls. First, informal occupancy without consent that later blocks an assignment or triggers default. Second, misaligned terms, where the sublease runs longer than the head lease or contains options you cannot grant. Third, vague descriptions of the subleased area that make outgoings and access unworkable.

A well drafted consent package and sublease can be agreed in days, not weeks. The commercial return can be strong, particularly where surplus space is monetised. The legal essentials above will preserve flexibility, protect cash flow and reduce exit friction.

Looking to sublet part or all of your premises or to take a sublease quickly? MLS LEGAL prepares landlord consent packs and short-form Victorian subleases that mirror your head lease risk profile and can usually be turned within five business days.

From Smith Street to Shopfronts for Lease: How Dupes and Fast Fashion Are Rewriting Melbourne’s Retail Story

Fri, 07 Nov 2025 01:04:49 GMT

Melly Shute | 7th November, 2025

Smith Street used to be a stage: cafés buzzing, boutiques bursting with treasures, foot traffic like background music. Now it is more like a ghost town with better lighting. “For Lease” signs replace chatter, empty windows replace whimsy, and landlords are left wondering if tumbleweeds pay rent.

The story of Melbourne’s streets is no longer about cafés and boutiques it is about Temu, fast fashion, and the slow death of foot traffic. Retail vacancy in Melbourne is 9.1 percent, down from a peak of 31.5 percent in 2021. Something has shifted and it is not just the rent. Empty shops make it harder for landlords to find tenants, slow the leasing market, and drain the life from streets that once thrived.

The villain in this story is convenience culture . Online shopping, fast fashion, and copycat products have drained our streets of energy, strangled local creativity, and left commercial landlords staring at empty shopfronts wondering who, if anyone, will pay their land tax bill. Every purchase of a cheap dupe is one less step through a real high street door and one more shuttered boutique or café.

Shopping at cheap and nasty online retailers floods the market with worthless goods that fall apart faster than a flimsy umbrella in a Melbourne windstorm. Fast fashion and Kmart knock offs blatantly copy creative designs, undercut creators, and hollow out Melbourne’s streets. Original designers struggle to compete with mass produced knock offs and the unique flair that makes our high streets special is fading.

Have you been to an op shop lately? They used to be treasure troves of unique bargains and hidden gems. Now they are filled with fast fashion junk and mass-produced items that would make your Nan weep. This is not just a loss for bargain hunters it is a loss for landlords, investors, and the quirky charm that makes our streets feel like Melbourne.

I’m far from the ‘save the world’ type, but the damage is clear to see when mass corporations knock off Melbourne creatives, flood the streets with copycats, and hollow out the neighbourhoods that make this city unique. This is not about politics it is about protecting the character, creativity, and financial health of the streets we actually walk on.

Empty shopfronts have serious consequences for commercial leasing. Landlords struggle to find tenants when shoppers don’t show up. Vacant shops reduce surrounding property values, discourage investment, and slow the retail market. Council interventions like rate increases or activation grants only go so far if residents continue to click/buy online instead of supporting local stores. Every empty shop is a reminder that leasing is not just about contracts it is about foot traffic, creativity, and community engagement.

Life is busy. It is convenient to grab what you need from Kmart where parking is free and everything feels fast and effortless. But the vitality of our neighbourhoods and the commercial leasing market depends on the choices we make every day. Supporting local cafés, boutiques, and galleries may take a little more effort, but it keeps streets alive, landlords confident, and the creative economy thriving. There is nothing wrong with shopping local, but everything is at stake if we do not.

Melbourne’s streets are only as vibrant as the people walking them. Every purchase, every visit, every choice matters. Step off the couch, skip your online basket, avoid copycats, and put your footsteps, attention, and wallets where the community and local landlords can see them.

Short stays, long battles: Airbnb and Victoria’s new 7.5 per cent short-stay levy

Tue, 30 Sep 2025 23:56:53 GMT

Article posted by innercitynews.com.au

Melly Shute | 30th September, 2025

If you live in an inner-city apartment and have ever wondered whether you bought a home or accidentally invested in a low-budget hostel, here is some news: Victoria has finally noticed.

From January 1, 2025, the Short Stay Levy Act 2024 came into effect. The headlines focused on the new 7.5 per cent levy on booking fees, but the real story is what else the law does. It gives owners’ corporations (OC) more power than a nosy neighbour with too much time on their hands.

OCs assemble

Up until now, OCs were busy fixing lifts, arguing over whether the lobby pot plant was ugly or architectural, and sighing at whoever keeps dumping a mattress in the recycling bin. This law gives them the ability to ban short-stay accommodation. With a special resolution requiring 75 per cent of owners to agree, your OC can now officially say: “No Airbnb for you!”.

This is a huge shift. The Supreme Court once said OCs could not meddle with how you used your own apartment. Now they can, even if your guests are quietly staying put.

What even is a “short stay”

A short stay is any letting for 28 days or less where guests do not actually live there. Hens parties in feather boas? Short stay. Footy fans singing a theme song? Short stay. Cousin’s mate from Germany crashing for two weeks? Short stay. Rent while in Santorini? Fine. Invite 50 strangers? Instant hostel.

Winners and whingers

The government says the levy will fund affordable and social housing. Maybe it will, maybe it will not, but at least it sounds good on a press release. Residents get peace and quiet while short-stay hosts face extra costs. Developers will have to decide if they market their towers as tranquil sanctuaries or Airbnb cash machines with city views.

Enforcement is the fun part

Passing the rule is easy. Enforcing it is like spotting the difference between a legit tenant and Airbnb guest number 437 in the lift. Do you interrogate everyone, demand proof of principal residence, or hire a sniffer dog trained to detect freshly laundered linen? None of the options are pretty.

And finally …

Whether you love it or hate it, this new law gives apartment meetings a new argument starter. Forget stairwell lightbulbs, it is all about Airbnbs now.

For some it is sweet relief from 2am rooftop karaoke. For entrepreneurs trying to squeeze extra dollars from their asset, it is a major blow to the side hustle, like discovering Newman has been stealing your mail.

Either way, your building has become ground zero for the short-stay revolution.

The Shades of Spring, When Your Neighbour’s Tree Thinks It Owns Your House

Wed, 10 Sep 2025 23:01:18 GMT

By Melly Shute

Spring has arrived in the inner city and with it comes sunshine, hay fever, and inevitably, tree disputes. You might think of trees as harmless, leafy air-purifiers, but in property law, they can become the quiet villains of the street.

Overhanging Branches

Picture this: you’re sipping coffee in your courtyard when a giant branch from your neighbour’s gum tree casually swan-dives into your garden. Suddenly, your Sunday turns into a crash course in arbor law.

The law is clear: the tree belongs to your neighbour, but you are entitled to protect your land from encroachment. At common law, you may cut back overhanging branches up to the boundary line ( Lemmon v Webb [1894] AC 1). However, you must not trespass onto your neighbour’s land or cause damage to the tree, doing so could expose you to liability. Importantly, the branches you remove technically remain your neighbour’s property, so you can’t just toss them into the green bin and pretend they never existed.

Encroaching Roots

Roots are a different beast. They’re like those mates who “just pop by” and end up staying the weekend. If a neighbour’s tree roots damage your drains, crack your foundations, or ruin your veggie patch, you may have a right to recover the cost of repairs. Courts have confirmed that a landowner can seek damages or an injunction if encroaching roots cause actual harm ( Kaitler v Bayside City Council [2012] VCAT 918).

That said, hacking away an entire root system is risky business. If the tree dies or becomes unsafe because of your actions, you could be held responsible.

Talk Before You Chop

The golden rule? Talk before you chop . Many disputes can be resolved with a simple conversation (and perhaps a six-pack). If that fails, legal remedies exist, including applications under the Fences Act 1968 (Vic) or proceedings at VCAT or the Magistrates’ Court.

Adding another wrinkle, some trees are protected under local planning schemes or heritage overlays. Removing or even significantly pruning them without council approval can result in fines much greater than the cost of mediation.

The Takeaway

So this spring, before you declare war on your neighbour’s overhanging branches, remember: while trees may not have rights, your neighbours and your council, certainly do. If you find yourself facing an arbor dispute, the best first step is legal advice to avoid turning a small nuisance into a costly legal battle.

Need assistance with your property law matter:

Call us on 03 9969 7146

“NIMBY, please!”: The unofficial motto of inner-city planning

Thu, 04 Sep 2025 23:13:40 GMT

Article posted by innercitynews.com.au

Melly Shute | 3rd September, 2025

Let’s talk about a cherished Melbourne pastime: objecting to development.

You’ve probably heard the term NIMBY, “Not In My Backyard.” It refers to that charming inner-city tradition where people support new housing, sustainability, and urban vibrancy … until someone proposes anything within three tram stops of their house. You’re planning a townhouse to raise your family close to your workplace; the NIMBY sees a Packer-style casino.

What is a NIMBY?

A NIMBY loves a renter, in theory. They certainly care about density, in Japan. They want more housing, but in someone else’s suburb.

They’ll happily sign a petition for affordable housing but will launch a six-month VCAT crusade to block a three-storey building in their street because it might cast a shadow over their Victorian or take up the permit car spaces.

To the NIMBY, every double-storey build is a monstrosity, cladding is offensive, and every rooftop deck is a threat to “neighbourhood character”, a phrase so vague it could be a bumper sticker.

So where does the law come in?

In Victoria, many developments require a planning permit. As part of the process, neighbours are notified, and an advertising board goes up. Cue: letters of objection, complete with dramatic language like “gross overdevelopment,” “traffic catastrophe,” or “an affront to our unique cultural fabric” (translation: “I hate it”).

Councils then have the impossible task of balancing these objections with shrinking housing supply, overall density goals, good planning policy and satisfying the warriors in Meta’s comment section. Sometimes they succeed. Other times? Not so much.

VCAT: The showdown of property ambitions

If the council decision doesn’t go your way, you might find yourself at VCAT, where developers, lawyers, the NIMBYs and that one guy with the clipboard all meet to battle it out over setbacks and shadow diagrams.

It’s democracy in action. It can also be a low-key unhinged morning that really gets the heart racing.

Is NIMBYism always bad?

Look, not necessarily.

Some planning applications are genuinely outrageous. Like when someone plonked a mid-rise grey box behind Victorian terraces and claimed it was “architecturally sympathetic.” Mate, to what?

Being NIMBY doesn’t mean you’re evil, it might just mean you like your morning sun, your quiet laneway, and not having balconies staring directly into your window.

People live in our neighbourhoods. They’ve raised kids here, planted lemon trees, perfected their sourdough starters. They’re allowed to care what gets built next door.

So yes, you can be pro-housing and still hate dodgy development. You can support density and think that a 1.8m boundary wall next to your bedroom is pushing it. These things can co-exist, like brunch and pretending to enjoy kombucha.

But (and it’s a big but) … if your planning objection is less about genuine impacts and more about preserving your uninterrupted skyline, or a vague golden memory from 1976, maybe take a breath. We need to always remember that housing is not a vibe, it’s a human right.

Because while we all love Melbourne’s charm, we also need homes for the next generation of indoor plant parents and the teachers, nurses, artists, and students who just want to live near good coffee and pat greyhounds.

Can You Gift a Property in Victoria Without Paying Stamp Duty?

Tue, 01 Jul 2025 23:39:58 GMT

Gifting property to a family member is a generous act, but in Victoria, it comes with significant tax implications. Many assume that transferring property without monetary exchange exempts them from stamp duty, but this is a common misconception.

Understanding Stamp Duty on Gifts

In Victoria, stamp duty, also known as land transfer duty, applies to most property transfers, including gifts. The State Revenue Office (SRO) assesses duty based on the greater of the property's market value or the consideration paid. This means that even if no money changes hands, the recipient may still be liable for stamp duty calculated on the property's market value.

Exemptions to Stamp Duty

While stamp duty generally applies, there are specific exemptions:

1. Transfers Between Spouses or Domestic Partners

Since 1 July 2017, exemptions apply only when:

The transfer is of a principal place of residence (PPR).
The transfer is made for no consideration, meaning you aren’t selling it to your spouse or domestic partner. The State Revenue Office may request a valuation of the property in making their assessment.

Both conditions must be met for the exemption to apply.

2. Transfers Due to Relationship Breakdown

Transfers resulting from the breakdown of a marriage or domestic relationship may be exempt under specific provisions of the Duties Act 2000.

Common Misconceptions

It's important to note that:

Gifting property to children, siblings, or other relatives typically does not qualify for a stamp duty exemption.
Transferring property from a trust to a beneficiary is not always exempt from stamp duty.

In these cases, the SRO requires evidence of the property's market value, often necessitating a valuation from a licensed real estate agent or property valuer.

Capital Gains Tax (CGT) Considerations

Beyond stamp duty, gifting property can trigger Capital Gains Tax (CGT). The Australian Taxation Office (ATO) treats gifts as disposals, meaning the donor may be liable for CGT based on the property's market value at the time of transfer. This is particularly relevant for investment properties or properties not used as the donor's main residence. Please contact your account and obtain financial advice in this regard.

Key Takeaways

Most property gifts in Victoria attract stamp duty, calculated on the property's market value.
Exemptions are limited and primarily apply to transfers between spouses/domestic partners of a principal place of residence made for no consideration.
Proper documentation and valuations are essential to determine duty liabilities accurately.
CGT implications should be considered when gifting property, especially for non-primary residences.

How MLS LEGAL Can Assist

Navigating the complexities of property transfers requires expert legal guidance. At MLS LEGAL, we specialise in:

Advising on stamp duty obligations and exemptions.
Preparing and lodging necessary documentation for property transfers.
Coordinating with valuers to establish market value assessments.

If you're considering gifting property or transferring ownership within your family, contact us today to ensure a smooth and compliant process

Understanding the Section 27 Statement

Wed, 04 Jun 2025 23:31:34 GMT

MLS LEGAL – Property Law Specialists in East Melbourne

In Victoria, the deposit paid by a purchaser is ordinarily held on trust, most commonly in the real estate agent’s trust account, until settlement. In some transactions, however, a vendor seeks early access to the deposit by serving a Section 27 Statement.

A Section 27 Statement is a statutory mechanism under section 27 of the Sale of Land Act 1962 (Vic). It permits a vendor to request the release of the deposit prior to settlement, but only if strict disclosure requirements are satisfied and the purchaser does not object on a valid ground within the prescribed period.

The purpose of Section 27

Section 27 was not intended to be a routine step in every sale. It was designed as a limited use procedure, generally to assist vendors who require access to funds to facilitate their next purchase. Well known Victorian property law commentator Russell Cocks has written on this issue in his article Deposit Release Why Take the Risk. The underlying point is simple: early release can expose a purchaser to avoidable risk if the transaction does not proceed to settlement. For that reason, the Section 27 process should be treated as a risk assessment exercise, not an administrative formality.

When can a Section 27 Statement be served

A Section 27 Statement can only be served once the contract is unconditional. In practical terms, that means any purchaser conditions such as finance approval or building and pest inspection conditions must have been satisfied or waived.

If the property is sold at auction, the contract is typically unconditional immediately, meaning the vendor may serve a Section 27 Statement shortly after sale.

Why do vendors request early release

Vendors commonly seek early release of the deposit to assist with cash flow in the lead up to settlement. This may include funding another purchase, meeting moving costs, paying bridging finance, or managing settlement related expenses.

From the vendor’s perspective, there is also a practical advantage if the purchaser later defaults. If the deposit has already been released, it may reduce the steps required to obtain the deposit funds. That said, the purchaser’s position is the primary risk focus, because the purchaser is the party parting with money before receiving title.

What must be disclosed in a Section 27 Statement

The Act requires the vendor to disclose matters that allow a purchaser to assess whether early release is safe. This typically includes details of any mortgage affecting the property and whether repayments are up to date, commonly supported by a letter from the mortgagee confirming particulars such as the amount secured and repayment status.

The statement must also disclose any caveats or other interests affecting the title.

The vendor does not need to disclose the reason for requesting the deposit. However, providing false or misleading information in the Section 27 Statement is an offence and can attract significant penalties.

Can a purchaser object

Yes. A purchaser has 28 days from service of the Section 27 Statement to raise a valid objection.

Common valid grounds include:

i) A caveat is recorded on title

ii) The mortgage exceeds 80 per cent of the sale price

iii) The vendor fails to provide the required supporting evidence about the mortgage

If no valid objection is made within 28 days, the purchaser is taken to have consented to

release of the deposit.

What are the risks for purchasers

The key risk is straightforward. If the vendor cannot complete settlement and the deposit has already been released, the purchaser may face difficulty recovering the deposit, particularly where the vendor is insolvent or there are competing claims to funds.

This is precisely why a Section 27 request should be reviewed carefully. The consequences, if the transaction fails, tend to be highly practical and highly expensive.

How purchasers can protect their position

Where there is no valid objection ground but early release is proceeding, a purchaser may consider lodging a caveat to protect their interest until settlement. A caveat is not a substitute for proper due diligence, but it can be a valuable safeguard in appropriate cases.

How the deposit is released in practice

If the purchaser signs the Section 27 Statement, or if 28 days passes without a valid objection, the vendor’s solicitor may direct the agent to release the deposit.

Agents may be entitled to deduct commission and authorised expenses from the deposit before paying the balance to the vendor, so the vendor should review the agent’s sale account carefully.

Need assistance with a Section 27 Statement?

Call us on 03 9969 7146 to contact

Should a Lawyer Complete a Contract Review Before I Sign the Contract?

Thu, 27 Mar 2025 23:23:57 GMT

If you are buying a property in Victoria, you will almost certainly come across the Section 32 Statement. It is a critical part of the sale process, but many buyers do not really read it.

Others read it without knowing what they are looking for. That is risky. If there is a problem in the disclosure, or if the contract contains an unfavourable special condition, it can lead to delays, unexpected costs, and in some cases a purchase that no longer makes sense once the fine print catches up.

This article explains what the Section 32 is meant to do, what it does not do, and why a contract review before signing is often one of the simplest ways to reduce risk.

What is a Section 32 Statement and Why Does It Matter?

A Section 32 Statement, also called a Vendor’s Statement, is required under the Sale of Land Act 1962 (Vic). It must be given to a buyer before the contract is signed. The purpose is disclosure. It is designed to tell the buyer key information about the land and certain matters that affect it. It commonly includes title details, information about easements and restrictions, planning and zoning information, and details about rates and outgoings. Many buyers assume that if the Section 32 has been provided, everything must be in order. That is not always the case. Documents can be incomplete, out of date, inconsistent with the title search, or drafted in a way that is technically compliant but still leaves important practical questions unanswered.

What can go wrong in a Section 32

A Section 32 is not a building report, and it is not a guarantee that the property is problem free. It is a disclosure document, and it has limits. Some common issues that arise in practice include the following. A buyer assumes defects will be disclosed.

The Section 32 usually will not tell you whether the bathroom has been waterproofed properly, whether the extension was approved, or whether the subfloor is home to a thriving ecosystem. Those are inspection issues. A buyer who relies solely on the paperwork can end up inheriting expensive repair work. A buyer does not understand planning and restrictions.

A property can look ideal on inspection yet still be subject to planning controls that materially limit what can be done with it. Restrictions may affect renovations, redevelopment, or even day to day use. Heritage overlays and other planning constraints commonly catch buyers by surprise, particularly in established Melbourne suburbs. Even where the Section 32 includes the planning certificate, the practical consequences are not always apparent unless the documents are read in context and properly interpreted.

A buyer overlooks mortgages, caveats, or other interests

The Section 32 is intended to disclose mortgages and other encumbrances affecting the title. Difficulties arise where disclosure is incomplete, unclear, or where the vendor has not put appropriate arrangements in place to deal with the encumbrance at or before settlement. If these issues are not identified and addressed early, they can cause settlement delays, increased costs, and avoidable anxiety for the buyer.

A buyer misses the contract special conditions

Often the most significant risk to a purchaser is not found in the general conditions, but in the special conditions drafted for that specific sale. These clauses can shift risk onto the buyer, limit rights that would otherwise apply, or impose strict timeframes and financial consequences. They should be reviewed carefully before signing, not discovered after a dispute arises.

In Victoria, many of the most important buyer risks sit not in the general conditions but in the special conditions. Deposit release, default interest, short settlement periods, limited requisitions, or clauses shifting risk to the purchaser can materially change the deal.

Should a lawyer review the contract before signing

For most buyers, yes. A contract review is not just a formality. It is an opportunity to identify issues early, explain the legal effect of what is being signed, and recommend amendments where appropriate.

A contract review typically focuses on whether the contract and Section 32 correctly identify the property, whether disclosure documents are complete, whether there are title or planning issues that matter for the buyer’s intended use, and whether any special conditions are unusual or disproportionately favour the vendor.

It can also cover practical risk points such as the finance clause, building and pest conditions, settlement timing, deposit arrangements, and what happens if something goes wrong between signing and settlement.

Practical steps buyers can take before signing

Arrange a legal review of the contract and Section 32 before signing wherever possible. Obtain building and pest inspections where appropriate, particularly for older dwellings or where renovations are evident.

Check owner’s corporation records carefully when purchasing an apartment or townhouse, including fees, minutes, defects, and insurance. Confirm planning and zoning controls where the buyer has a specific plan for the property such as renovation, extension, or running a business from home.

Final thought

A Section 32 is not “just admin”. It is the vendor’s disclosure to you, and it sits alongside a contract that will govern the transaction once signed. A short review before signing can prevent long and expensive problems later.

Top 6 Mistakes First Home Buyers Make (and How to Avoid Them)

Wed, 26 Mar 2025 22:29:34 GMT

Buying a first home is equal parts exciting and terrifying. It is also one of the few purchases where people feel pressure to make a decision quickly, often on limited information, while signing documents that can have serious legal and financial consequences. Below are six common mistakes first home buyers make in Melbourne and across Victoria, and practical ways to avoid them before the process becomes more expensive than it needs to be.

Mistake #1: Budgeting for the deposit but not the everything else

First home buyers often focus on the purchase price and deposit and forget the additional costs that can arrive at the worst possible time.

Common examples include stamp duty (subject to concessions), lender fees, lender’s mortgage insurance if borrowing over 80 per cent, building and pest inspections, conveyancing and bank fees, and the simple reality that moving costs money.

How to avoid it: Prepare a full costs to complete budget early. Allow a buffer for the unknowns because there will be unknowns. A mortgage broker can assist with finance modelling, and a property lawyer can identify transaction costs triggered by contract terms.

Mistake #2: House hunting without loan pre approval

Looking at properties without knowing borrowing capacity is a fast way to waste weekends and fall in love with homes that are not financially realistic. It can also place buyers under time pressure later when they need formal approval quickly.

How to avoid it: Obtain pre approval before serious inspections begin. It clarifies the range, strengthens negotiating position, and reduces the risk of scrambling if the right property appears.

Mistake #3: Buying a property that suits right now but not the next five years

A common trap is purchasing for today’s lifestyle without considering likely changes, including working arrangements, relationship changes, children, commuting, caring responsibilities, or simply the need for space. Buyers also underestimate the impact of location, including transport, schools, planning controls, and local amenity.

How to avoid it: Take a longer view. Consider the suburb, not just the dwelling. Review local infrastructure projects, zoning, overlays, and comparable sales. If the property is further out, factor in the real cost of time and travel. It is amazing how quickly affordable becomes

exhausting.

Mistake #4: Choosing a loan structure without stress testing it

Fixed versus variable, offset accounts, redraw, introductory rates, loan products are not interchangeable. Many buyers choose based on the headline rate rather than flexibility, fees, and what happens when rates move.

How to avoid it: Run the numbers at higher interest rates and ensure repayments remain manageable. Consider how the loan works in real life, including access to funds, break costs, and the cost of changing later. Use a broker if needed, but still understand what is being

signed.

Mistake #5: Skipping due diligence inspections, owners corporation, and the Section 32

In Victoria, the Section 32 (Vendor’s Statement) and Contract of Sale are not standard paperwork. They contain disclosure material and legal terms that can affect the property’s value and usability, including easements, covenants, zoning, outgoings, owners corporation

rules, defects history, and special conditions.

Likewise, failing to conduct building and pest inspections can turn cute period charm into structural surprise.

How to avoid it: Organise building and pest inspections where appropriate and have a property lawyer review the Section 32 and contract before signing wherever possible. For apartments and townhouses, pay particular attention to owners corporation records, fees,

and any building issues.

Mistake #6: Assuming the contract is not negotiable or just signing to secure it

Many first home buyers believe contracts cannot be amended, or that signing quickly is the only way to compete. In reality, contracts often contain special conditions that can be negotiated, including finance dates, deposit terms, settlement timing, inclusions and exclusions, and risk allocations.

How to avoid it: Slow down just enough to understand what is being agreed to. Legal review can identify unusually onerous special conditions and propose amendments that better reflect the buyer’s position.

Final Thoughts

First home buying is not just a property decision. It is a legal transaction with long term financial consequences. The best outcomes tend to come from preparation, clear budgeting, finance readiness, proper due diligence, and contract review before commitment.

Buying your first home is a big step, but having expert legal guidance can take the stress and confusion out of the process. Avoid common first home buyer errors and ensure a smooth purchase with MLS LEGAL your trusted property law specialists. Contactus today!