This is a near-new, high-specification four-bedroom home on its own 566 m² parcel in Montmorency, a leafy, family-oriented suburb in Melbourne's north-east. The home is genuinely good: three bathrooms, solar, double glazing, premium finishes and a strong indoor-outdoor layout. It was marketed by Expressions of Interest with a guide of $1,250,000 to $1,350,000, and the agent's own comparable sales (from $1,225,000 to $1,400,000, including a near-identical four-bed, three-bath home at $1.4 million) confirm that guide is fair. The caution is around the property, not the build. We have now reviewed the Section 32, and it is largely clean: clear title, no caveats, no rate arrears, built by a registered builder. A few things warrant attention before you sign: three planning overlays apply, the title carries a Section 173 Agreement you should read, the home sits in a small four-lot Owners Corporation (a modest fee of about $764 a year that also covers building insurance) despite the listing presenting it as a house, and council records flag the land as termite prone, so a timber pest inspection is essential. Add a rising-rate, cooling market and a weak rental yield, and the picture is a sound home that needs a few boxes ticked. As a home to live in this is a sound buy at a fair price. As a pure investment the rent of roughly $830 a week gives a low yield near 3.3% and a heavy weekly shortfall, so the numbers suit an owner-occupier far better.
Timing note: the Expressions of Interest campaign closed Tuesday 2 June 2026. As at this report date the property may be under offer or sold. Confirm current availability with the agent.
| What we looked at | Score | In one line |
|---|---|---|
| Capital growth outlook | ●●●○○ 3/5 | Quality suburb with a solid long-term record, but near-term growth is slow with rates rising. |
| Rental yield & demand | ●●○○○ 2/5 | Tenant demand is strong, but the gross yield near 3.3% is low for the price. |
| Value for the price | ●●●○○ 3/5 | The guide is fair and well supported by recent house sales, not a bargain. |
| Risk & constraints | ●●●○○ 3/5 | Clean title, but three overlays, a Section 173 agreement, a small OC, and a termite-prone designation to inspect. |
| Affordability & cash flow | ●●○○○ 2/5 | About $335k cash to settle, and as a rental it runs at about $940 a week out of pocket. |
| Location & liveability | ●●●●○ 4/5 | Train on the Hurstbridge line, good schools, leafy streets, low crime, energy-efficient home. |
Overall, a well-located, well-built family home at a fair price, held back from a clear green light by several items to resolve before signing and by a market that currently favours patient buyers. It is a much stronger owner-occupier purchase than an investment.
A Vegetation Protection Overlay, a Design and Development Overlay, and a Development Contributions Plan Overlay all sit over this property (Source: VicPlan, retrieved 4 June 2026).
The title carries a Section 173 Agreement (dealing [dealing redacted], 2014). These agreements bind the land and often impose conditions from the original development approval, such as limits on further subdivision, tree or drainage obligations.
The Banyule Building Regulations (Reg 51) certificate in the Section 32 designates the land as termite prone. This is common in leafy, treed areas and is manageable, but it is not optional to check.
The Section 32 confirms an Owners Corporation (OC1, Plan [plan ref redacted], unlimited) covering common property across four lots, managed by a licensed strata manager. The current fee is a modest $763.60 a year and it includes building insurance through the OC. This is reasonable, but it is an ongoing cost the "house" listing did not signal.
The Reserve Bank lifted the cash rate to 4.35% in May 2026 and may raise again, while Melbourne's auction clearance has slipped to around 59% (Source: RBA, May 2026; Domain/REIV, late May 2026).
At the guide price the gross rental yield is about 3.3%, and after a mortgage and holding costs the property would run at about $940 a week out of pocket (see Section 24).
Example Address is a near-new four-bedroom, three-bathroom home with a double garage on its own 566 m² parcel (a registered Plan of Subdivision lot), set in an elevated, secluded pocket of Montmorency with treetop views. It is a high-specification, energy-efficient home: 5.5kW solar, double-glazed windows, split-system heating and cooling, premium Wormy Chestnut floors, a stone kitchen with walk-in pantry, a gas log fire in the lounge, and a covered alfresco with overhead heating and an open fire. The layout places a bedroom with ensuite plus a home office on the main level, with the master suite and two further bedrooms upstairs. Security and comfort features include keyless entry, a video doorbell, CCTV, an alarm, a water tank and smart irrigation. Condition is near-new and presentation is premium. It was marketed by the marketing agent via Expressions of Interest, guide $1,250,000 to $1,350,000 (Source: the listing).
The agent's Statement of Information (prepared 7 May 2026) gives an indicative selling range of $1,250,000 to $1,350,000, a Montmorency house median of $1,155,000 (REIV, year ending March 2026), and three comparable sales within 2 km in the prior six months: Comparable A at $1,280,000, Comparable B at $1,225,000, and Comparable C at $1,400,000. These three bracket the guide and sit above the suburb median, which is appropriate for a near-new, high-specification home. The closest match, Comparable C (also four bedrooms, three bathrooms, recently built), sold for $1,400,000, which supports the top of the guide. We reviewed the Statement of Information directly and it reconciles with our independent reading.
Now confirmed from the title search in the Section 32. The land is a lot on a registered Plan of Subdivision, Certificate of Title [title reference redacted], held as an estate in fee simple (freehold). The registered proprietors (names redacted) have owned it since February 2021.
| On title | Detail |
|---|---|
| Mortgage | a major bank. Normal, and will be discharged at settlement. |
| Owners Corporation | OC1, Plan [plan ref redacted] (unlimited), covering common property across four lots. See Section 07. |
| Section 173 Agreement | Dealing [dealing redacted] (2014). Binds the land. Read it before signing (see Red Flags). |
| Caveats | ✓ None registered |
| Easements / covenants | Per the registered plan and standard service easements. The shared driveway sits on common property managed by the OC. |
This is a clean title for a recently subdivided home: a single ordinary mortgage that clears at settlement, no caveats, and the usual subdivision arrangements. The two items to understand rather than worry about are the Section 173 Agreement and the Owners Corporation, both covered below. (Source: Section 32 register search, Title [title ref redacted], produced 13 March 2026.)
We have reviewed the vendor's Section 32 (Vendor Statement) prepared by the vendor's conveyancer, dated March 2026. The findings below are what it discloses, with anything that needs your attention flagged. Two items, the Owners Corporation and the Section 173 Agreement, were not obvious from the listing.
| Disclosure | Finding | Status |
|---|---|---|
| Title | a Plan of Subdivision lot, [title ref redacted], fee simple. Owners (names redacted) since Feb 2021. | ✓ Clear |
| Mortgage / caveats | a major bank mortgage (discharged at settlement). No caveats. | ✓ Clear |
| Section 173 Agreement | [dealing redacted] (2014) registered on title. Binds the land. Read it. | ⚠ Read |
| Owners Corporation | OC1 [plan ref redacted] (unlimited), 4 lots, manager a licensed strata manager. Fee $763.60/yr, paid to 30 Jun 2026. Building insured via the OC . Model rules apply. | ⚠ Note |
| Council rates & charges | About $2,636 for 2025–26 (rates, waste, fire levy). No arrears. | ✓ Clear |
| Valuation | Capital Improved Value $1,100,000; Site Value $420,000 (used for land tax). | ✓ Noted |
| Building permits | Disclosed via attached certificate. Built by a registered builder (not owner-builder). | ✓ Clear |
| Planning certificate | NRZ3 with the overlays in Sections 08–09. Consistent with VicPlan. | ✓ Matches |
| Bushfire / GAIC | Not in a designated Bushfire Prone Area. GAIC not applicable. | ✓ Clear |
| Termite prone (council Reg 51) | Banyule records designate the land termite prone. Flood prone: No. Get a timber pest inspection (see Risk Assessment). | ⚠ Note |
| Notices & orders | None to the vendor's knowledge. | ✓ Clear |
Questions for your conveyancer: (1) What exactly does the Section 173 Agreement require, and does it restrict any future works or subdivision? (2) Confirm the Owners Corporation has no special levies planned and adequate insurance. (3) Confirm the shared-driveway and any drainage easements on the registered plan.
This is a plain-English review to help you understand the documents. It is not legal advice and does not replace review of the Section 32 and title by a qualified conveyancer or solicitor before you sign.
The land is in the Neighbourhood Residential Zone, Schedule 3. This is the most protective of the standard residential zones: it keeps low-rise, leafy character and limits larger-scale development. For you as an owner that means a stable, low-density street, but also height and design limits, and a planning permit may be needed to extend or rebuild. A building permit is required for works regardless. (Source: VicPlan, 4 June 2026.)
The Growth Areas Infrastructure Contribution (a levy in Melbourne's outer growth corridors) does not apply to this established middle-ring suburb.
An overlay is an extra planning control layered on top of the zone. This property carries three, which is on the higher side and is the main reason the overlay risk is rated Amber.
| Overlay | Name | What it means for you |
|---|---|---|
| VPO1 | Vegetation Protection Overlay | You generally need a council permit to remove, destroy or lop protected vegetation. Relevant on a leafy, treed block. |
| DDO8 | Design and Development Overlay | Sets design, height and siting controls for building work in this area. Plan future works around it. |
| DCPO1 | Development Contributions Plan Overlay | A contributions levy can apply to new development. Low impact if you simply live in the home; relevant if you develop. |
| SBO | Special Building Overlay (nearby, not on this land) | ✓ Not on the land. Present in the vicinity. Often signals overland stormwater paths, so confirm there is no drainage easement on title. |
Overall overlay risk: Amber The overlays are workable for an owner who wants to live in the home, but they add permit steps and should be understood before any garden or building changes.
| Risk type | Status | What it means |
|---|---|---|
| Flood overlay on the land | ✓ Clear | No flood overlay maps over this lot. A Special Building Overlay is nearby but not on the land. |
| Bushfire | ✓ Clear | Not in a designated Bushfire Prone Area. No special bushfire construction rules apply (Source: VicPlan). |
| Termites | ⚠ Flag | Banyule Council records designate the land termite prone (Building Regulations Reg 51). Common in leafy, treed suburbs. A timber pest inspection is essential and a termite management system should be in place and maintained. |
| Flood (council record) | ✓ Clear | The same council certificate lists Flood Prone: No, consistent with the planning overlays. |
| Asbestos (build age) | ✓ Low | Built around 2020, well after the 2003 asbestos ban, so asbestos materials are very unlikely. |
| EPA contamination | ⚠ Confirm | No listing found on a quick check, but the EPA register was not formally searched. A residential street makes contamination unlikely; confirm via the Section 32. |
| Other site factors | ✓ Clear | No obvious main-road frontage, powerline or industrial exposure from available information. |
Insurance: the building is insured through the Owners Corporation (the OC's insurer), so you would mainly need contents and landlord cover rather than a separate building policy. With no flood or bushfire overlay on the land, cover should be straightforward. Note that termite and timber-pest damage is almost always excluded from building insurance, which is another reason to confirm termite protection is in place.
Market snapshot · June 2026
The timing matters here. The Reserve Bank raised the cash rate to 4.35% in May 2026 after inflation picked up in late 2025, and markets are split on whether another rise follows (Source: RBA, May 2026). Higher rates cut borrowing power and confidence, and you can see it at auctions: Melbourne's clearance rate has eased to around 59%, down from about 71% a year earlier, with more homes listed and less urgency to buy (Source: Domain / REIV, late May 2026).
The one firm support is rentals. Melbourne's vacancy rate sits near 1.5%, well under the 3% that marks a balanced market, so tenant demand is strong. For a buyer, the headline is simple: a softer, more patient market that hands you negotiating room, while your repayments are being tested by rates that are still climbing.
| Measure | Montmorency (houses) | Context |
|---|---|---|
| Median house price | $1,155,000 | REIV, year ending March 2026. Well above the Melbourne metro median of about $845k. |
| Recent growth (1 year) | ~+2% to +5% | Modest and mixed across sources, in line with a cooling market. |
| Two-year change | ~+14% | Solid medium-term gains before the recent slowdown. |
| Recent 4-bed house sales | $1.18m–$1.30m | Active segment; the subject sits in the upper part on spec and land. |
Montmorency is an established, blue-ribbon pocket of the north-east with a long record of steady growth, helped by its leafy character, train line and schools. The near-term picture is slower as rates rose. Trend direction: → Flat to modest. Precise five and ten-year figures were not confirmed for this report and should be verified; the long-run pattern for the area has been dependable rather than spectacular. (Source: Domain / propertyvalue.com.au / REIV, 2025–26.)
How Montmorency sits against its neighbours and the Melbourne metro median. The subject suburb is highlighted.
| Suburb | Median house price | 1yr growth | Median rent | Gross yield |
|---|---|---|---|---|
| Montmorency (subject) | ~$1,155,000 | ~+2–5% | ~$750 | ~3.2% |
| Eltham | ~$1,250,000 | +4.7% | ~$760 | ~2.9% |
| Lower Plenty | ~$1,550,000 | n/a | n/a | n/a |
| Briar Hill | ~$1,020,000 | n/a | n/a | n/a |
| Greensborough | ~$1,008,000 | n/a | n/a | n/a |
| Melbourne metro | ~$845,000 | n/a | n/a | ~3.0% |
Montmorency sits mid-pack among its neighbours: more affordable than Eltham and Lower Plenty, dearer than Greensborough and Briar Hill, and well above the metro median. Its draw is the village feel, the train station and the schools. The picture is consistent across the group: solid, established family suburbs with modest yields, where buyers pay for lifestyle and long-term growth rather than rental return. On value, Montmorency looks fairly priced against Eltham, its closest peer, with a slightly better yield. (Source: Domain / Barry Plant / the marketing agent suburb data, 2026; some cells marked n/a were not verified for this report.)
These are the agent's three Statement of Information comparables (sold within 2 km in the prior six months), the suburb median, and the subject's own last sale.
| Address | Sold | Price | Beds/Baths | Land |
|---|---|---|---|---|
| Comparable C, Montmorency | Feb 2026 | $1,400,000 | 4 / 3 | n/a |
| Comparable A, Montmorency | Apr 2026 | $1,280,000 | 4 / 2 | 534 m² |
| Comparable B, Montmorency | Feb 2026 | $1,225,000 | 4 / 2 | 720 m² |
| Montmorency house median (REIV, yr to Mar 2026) | — | $1,155,000 | Benchmark | — |
| Example Address (subject, last sale) | Dec 2020 | $1,165,000 | 4 / 3 | 566 m² |
The closest match is Comparable C, also a recently built four-bedroom, three-bathroom home, which sold for $1,400,000. The two four-bedroom, two-bathroom houses sold lower, at $1,225,000 and $1,280,000. The subject offers the same 4/3 configuration as the top comparable, with near-new condition and 566 m² of land, so fair value sits in the upper part of the guide, around $1.28 million to $1.38 million.
The guide sits inside the comparable band, with genuine support at its upper end from the most similar property. That is consistent with a fairly priced, arguably slightly conservative listing rather than an overreach.
We estimate the rent from comparable rentals rather than a single suburb median, then adjust for this home's premium specification.
| Comparable 4-bed rental (Montmorency) | Weekly rent |
|---|---|
| Entry / older four-bedroom | ~$650 |
| Updated four-bedroom house | ~$850 |
| Larger / premium four-bedroom | ~$950 |
| Cross-check: Eltham house median rent | ~$760 |
How we get to the number: four-bedroom houses in Montmorency currently rent across roughly $650 to $950 a week (Source: Domain rental listings, 2026). This home is near-new and premium (three bathrooms, solar, double glazing, alfresco), so it sits in the upper part of that range, but the high purchase price tempers the realistic rent. Cross-checking against Eltham's house median of about $760 a week, we estimate about $830 a week (range $800 to $880). Specific comparable addresses are available on the Domain rental page and should be confirmed with a property manager.
Demand indicator: Strong. Gross yield is a year's rent as a percentage of the price, before costs. Net return after costs is covered in Section 24.
As a rental, the property should perform well on the things that protect a landlord's income, even though the yield is low. The build date works in its favour: a near-new home with solar, double glazing, three bathrooms and a modern layout sits at the top of the local rental market, leases quickly to families in a suburb with vacancy near 1.5%, attracts longer-term quality tenants, and carries lower maintenance and fewer vacancy gaps than older stock. So while the percentage return is modest, the rent is reliable and the running costs are kept down by the age and quality of the home. The weakness is purely the price-to-rent ratio, not the lettability.
| Mode | Detail | To CBD |
|---|---|---|
| Train | Montmorency Station, Hurstbridge line | ~40 min |
| Car | Via Greensborough Hwy / M80 / Eastern Fwy | ~30–45 min off-peak |
| Bus | Local routes to Greensborough and Eltham | — |
Connectivity rating: Good. Montmorency has its own station on the Hurstbridge line, roughly 40 minutes from the city in peak, a genuine draw for families and commuters that supports both resale and rental demand. Greensborough's major shopping and services are close by. Confirm the exact walk from the property to the station on a map. (Source: PTV / Metro Trains, 2026.)
The standout project for the broader area is the North East Link, the major road project upgrading connections through Melbourne's north-east, which over time should improve travel across the region. Its exact route distance from this property and completion timing should be confirmed, but it is a long-term positive for connectivity in Banyule. No specific council capital works affecting this street were identified for this report. (Local impact to be confirmed.)
Montmorency is an established, comfortable family suburb. A median age of 41 and a household income near $2,076 a week (above the Melbourne average) point to a settled, owner-occupier community (Source: ABS Census 2021). For an owner-occupier that means stable streets and good schools. For an investor it means tenants tend to be families on longer leases, which supports low vacancy but caps the yield, since most demand here comes from buyers, not renters. The exact owner-occupier share was not confirmed but is typically high for this suburb.
Crime is low and falling. Montmorency recorded about 2,400 offences per 100,000 people in the year to March 2025, below the Victorian average, with the rate down roughly 15% over five years. The most common categories are theft, breaches of orders and burglary, typical of a quiet residential suburb. Rating: Below state average. (Source: Crime Statistics Agency Victoria / aggregators, 2025.)
The vendors, the current owners, bought this home new (contract December 2020, settled February 2021) for $1,165,000 and have held it about five years. Guiding now at $1.25 million to $1.35 million seeks roughly $85,000 to $185,000 above the 2020 purchase, which is modest growth of around 1.5% to 2.5% a year and sits comfortably with the agent's comparable sales. Choosing an Expressions of Interest campaign suggests the vendor wanted buyers to set the price in a softer market. Negotiation leverage: Moderate. The cooler market and the measured guide suggest room to negotiate toward the lower end if the campaign did not produce competing offers. Confirm the campaign outcome and any price feedback with the agent. (Source: the marketing agent sale record 2020; listing data 2026.)
| Scenario | Annual growth | Value at 5 years | Value at 10 years |
|---|---|---|---|
| Conservative | 2.0% | ~$1.44m | ~$1.58m |
| Base | 3.5% | ~$1.54m | ~$1.83m |
| Optimistic | 5.0% | ~$1.66m | ~$2.12m |
These figures start from a $1.3 million purchase. The base case assumes a return to modest, steady growth after the current soft patch, consistent with the suburb's history. The conservative case reflects rates staying higher for longer; the upside is Montmorency's enduring family appeal and transport. Illustrative estimates only, based on historical growth and public data. Not a prediction and not financial advice. Past performance is not a reliable indicator of future results.
Day-one cash required (20% deposit, $1.3m purchase)
Based on a $1.3 million purchase: a 20% deposit is $260,000, leaving a loan of $1,040,000. Victorian stamp duty is about $71,500, and conveyancing, inspections and loan fees add roughly $3,400, so you would need about $335,000 in cash on settlement day. LVR (the share of the price you borrow) here is 80%, the level above which lenders usually charge mortgage insurance.
| Repayment basis | Monthly | Annual |
|---|---|---|
| Principal & interest (6.5%, 30 yrs) | ~$6,575 | ~$78,900 |
| Interest only (6.5%) | ~$5,630 | ~$67,600 |
First home buyer concessions end at $750,000, so they do not apply at this price. Borrowing-capacity estimates are indicative only; speak to a licensed mortgage broker. This is not financial advice.
| Rate | Monthly | Annual | vs base |
|---|---|---|---|
| 5.5% | $5,910 | $70,920 | −$665 |
| 6.0% | $6,240 | $74,880 | −$335 |
| 6.5% (base) | $6,575 | $78,900 | — |
| 7.0% | $6,920 | $83,040 | +$345 |
| 7.5% | $7,270 | $87,240 | +$695 |
| 8.0% | $7,630 | $91,560 | +$1,055 |
This is the question that matters most right now, because rates are rising. If your rate moved from 6.5% to 7.5%, repayments rise by about $695 a month, or roughly $8,300 a year. At a stress level of 8% you would pay about $1,055 a month more than today. Make sure your budget holds at the higher end of this table, not just at today's rate.
| Year | Est. value | Approx. loan | Your equity |
|---|---|---|---|
| 0 | $1,300,000 | $1,040,000 | $260,000 (20%) |
| 5 | ~$1,544,000 | ~$962,000 | ~$582,000 |
| 10 | ~$1,834,000 | ~$858,000 | ~$976,000 |
On the base case your equity grows from $260,000 at purchase to roughly $976,000 by year ten, as the loan falls and the home appreciates. That is the long-term case for owning it.
| P&I loan | Interest only | |
|---|---|---|
| Annual rent (50 weeks) | $41,500 | $41,500 |
| Annual mortgage | −$78,900 | −$67,600 |
| Holding costs (council rates ~$2,636, water, OC fee $764 incl. building insurance, landlord cover, ~7% management, maintenance, land tax ~$1,710) | −$11,510 | −$11,510 |
| Net position (all-in) | −$48,910/yr | −$37,610/yr |
| Weekly out of pocket (all-in) | ~−$940 | ~−$723 |
As a rental, this home would cost about $940 a week out of pocket on a principal and interest loan once all costs are counted, or about $723 a week interest only. That is a large shortfall, and it confirms the headline: the numbers work for someone who wants to live here, not for an income-focused investor. Indicative only; holding costs estimated and exclude your personal tax position. Illustrative projections, not financial advice.
| Where you could put your money | Return |
|---|---|
| This property (gross rental yield) | ~3.3% |
| Melbourne median house gross yield | ~3.0% |
| RBA cash rate | 4.35% |
| 12-month term deposit (approx) | ~4.5% |
As an income investment, the rent this home produces (about 3.3% before costs) is lower than cash earns in a term deposit right now, and below your mortgage rate. A property like this only makes financial sense if you expect capital growth, or if you buy it as a home rather than an income asset. Land tax: if bought as an investment (not your home), Victorian land tax would apply each year. Using the Section 32 site value of $420,000, and assuming this is your only Victorian land, that is about $1,710 a year (already included in the cash flow above). Your own home is exempt. Benchmarks indicative; land tax based on the disclosed site value and current SRO scale. Confirm with the SRO and a tax adviser.
| Your leverage | The evidence | Strength |
|---|---|---|
| Cooling market | Clearance down to ~59%, rates rising, more stock, less urgency. | Strong |
| Comparable evidence | Agent's own comparables span $1.225m to $1.40m; two 4/2 houses sold below $1.3m. | Strong |
| EOI may have passed | Campaign closed 2 June; if unsold, the vendor may be more flexible now. | Moderate |
| Items to resolve | Three overlays and a Section 173 agreement to review (Section 32 otherwise clean). | Moderate |
Suggested conditions to include in any offer: subject to finance, subject to a satisfactory building and pest inspection, and subject to review of the Section 32 and title. These protect you while the open items are resolved.
A full due-diligence report like this one, researched and written for the specific home you are considering.
Order your report →