Investment Property in Victoria: Conveyancing Guide for Buyers

Buying an investment property in Victoria is about more than finding a property with good rental potential.

Before you sign a Contract of Sale, you also need to understand what you are buying, the conditions attached to the property and whether anything could affect your plans after settlement.

That means looking at the Contract of Sale, Section 32 Vendor Statement, title, existing tenancy, owners corporation information, rental standards and the costs that can come with owning an investment property.

Our licensed conveyancing team can help you review the property documents before you commit and manage the conveyancing process through to settlement.

If you have already found an investment property, having the contract reviewed early can help you understand the terms before you become bound by them.

What Should You Check Before Buying an Investment Property in Victoria?

Before buying an investment property in Victoria, check:

• The Contract of Sale
• The Section 32 Vendor Statement
• The property title
• Easements, covenants and other restrictions
• Whether the property already has a renter
• The existing rental agreement
• Owners corporation fees and special levies
• The physical condition of the property
• Victorian rental minimum standards
• Finance conditions
• Land transfer duty
• Potential land tax
• Settlement timing
• How the property will be owned

You should also consider whether the property suits your wider investment goals.

ASIC’s Moneysmart guide to buying an investment property provides useful general information on rental income, property expenses, borrowing and investment risk.

Our role is different.

We focus on the conveyancing side of the purchase. We help you understand the property documents, contract conditions and transfer process before settlement.

1. Start With the Contract of Sale

The Contract of Sale sets out the terms agreed between you and the seller.

For an investment property, it may cover:

• Purchase price
• Deposit
• Settlement date
• Finance conditions
• Building inspection conditions
• Existing rental arrangements
• Fixtures and inclusions
• Special conditions
• Other requirements applying to the transaction

A property may look like a good investment, but the contract still needs to suit your circumstances.

What Should an Investor Check in the Contract?

Before signing, check whether:

• Your finance condition gives you enough time
• The settlement date suits your lender
• The property is being sold with vacant possession or an existing renter
• A rental agreement will continue after settlement
• Special conditions create additional obligations
• Expected fixtures and inclusions are recorded
• Relevant owners corporation information has been supplied
• The property details match what you believe you are buying

For investment properties, one area we pay particular attention to during a contract review is whether the property is being sold with vacant possession or subject to an existing rental agreement. This can affect what happens after settlement and should be understood before you sign.

If you already have the documents, our pre-purchase contract review service can help you understand the Contract of Sale and Section 32 before you commit.

Found an Investment Property You Want to Buy?

Have the Contract of Sale and Section 32 reviewed before you sign.

Our licensed conveyancing team can explain the contract conditions, property disclosures and settlement requirements that may affect your purchase.

Request a Contract Review

2. What Can the Section 32 Tell You?

The Section 32 Vendor Statement is an important part of buying an investment property in Victoria.

The seller must provide it before you sign the Contract of Sale.

Depending on the property, it can contain information about:

• Title details
• Mortgages
• Easements
• Covenants
• Planning information
• Rates and outgoings
• Owners corporation information
• Notices affecting the property

Our Section 32 Vendor Statement guide explains the document in more detail.

What Should an Investor Look for in the Section 32?

Pay particular attention to anything that could affect:

• How the property can be used
• Future renovations or development
• Owners corporation costs
• Access to the property
• Restrictions affecting the title
• Your plans for the property

The Section 32 is important, but it does not replace a physical building inspection.

Document review and property-condition checks should be treated as separate parts of your due diligence.

3. Buying an Investment Property With an Existing Renter

Buying a property with an existing renter is different from buying a vacant property.

If the rental agreement continues beyond settlement, the Contract of Sale should specify that the property is being sold subject to that rental agreement.

Before buying, find out:

• Whether the property is currently rented
• The rent being paid
• Whether the agreement is fixed-term or periodic
• When the current agreement ends
• Whether a bond is held
• Whether a property manager is appointed
• What rental documents will transfer following settlement

Do not assume buying the property automatically ends the existing rental agreement.

Consumer Affairs Victoria provides further guidance on rental agreements and property management when a property is sold.

What Happens to the Bond?

If you buy an occupied rental property, the rental provider details attached to the bond need to be updated with the Residential Tenancies Bond Authority.

You can check the current process through Consumer Affairs Victoria’s guidance on transferring rental providers on a bond.

If the existing rental arrangement is important to your decision to buy, tell us before you sign so we can consider the relevant contract documents as part of our review.

4. Is the Investment Property Ready to Rent?

If you intend to rent the property, you should consider its condition from a rental-compliance perspective as well as its general building condition.

Victoria has 15 categories of rental minimum standards.

Rental properties must meet the applicable standards before they are advertised or offered for rent.

The standards cover areas including:

• Bathrooms
• Electrical safety
• Heating
• Kitchens
• Laundry
• Lighting
• Locks
• Mould and damp
• Structural soundness
• Toilets
• Ventilation
• Windows
• Window coverings

You can review the current Victorian rental minimum standards and the rental minimum standards checklist before buying.

Why Does This Matter Before You Buy?

A property may require work before it can be offered to a new renter.

That could affect your:

• Repair budget
• Renovation plans
• Timing for securing a renter
• Holding costs after settlement

Rental compliance is not something we assess as part of a standard conveyancing review.

Where appropriate, you should have the physical property inspected by suitably qualified professionals.

5. Plan Ahead for Victoria’s New Energy Standards

If you are buying an investment property in 2026, it is also worth considering upcoming changes.

New Victorian minimum energy-efficiency standards for rental properties begin to take effect in phases from 1 March 2027.

They cover six areas:

• Heating
• Cooling
• Hot water
• Showerheads
• Ceiling insulation
• Draughtproofing

The requirements have different start dates and triggers. Not every rental property will need every upgrade immediately on 1 March 2027.

Consumer Affairs Victoria provides the current details in its minimum energy-efficiency standards guide.

If you are considering an older investment property, looking at its existing heating, cooling, hot-water and insulation systems can help you understand potential future costs.

6. Buying an Apartment or Unit? Look Beyond the Purchase Price

Apartments, units and some townhouses form part of an owners corporation.

If your investment property does, ongoing costs may include:

• Annual owners corporation fees
• Special levies
• Maintenance contributions
• Insurance
• Major building works

Available owners corporation records may also reveal information about:

• Building defects
• Upcoming repairs
• Special levies
• Insurance claims
• Disputes
• Major maintenance projects

Consumer Affairs Victoria has a useful checklist for buying an apartment or unit.

If you are considering this type of property, our Buying an Apartment in Victoria guide goes into these checks in more detail.

7. Don’t Rely on the Contract to Tell You the Building’s Condition

A conveyancing review cannot tell you whether the roof is failing, the property has structural damage or expensive repairs may be approaching.

Depending on the property, consider arranging an independent building inspection before you commit.

Possible issues can include:

• Water damage
• Cracking
• Structural movement
• Roofing problems
• Termite damage
• Plumbing issues
• Electrical problems
• Poor previous renovations

For an investor, these problems can affect more than the purchase price.

They may also affect:

• Rental readiness
• Maintenance costs
• Insurance
• Future renovations
• Compliance with rental standards

Our role is to assist with the property documents and conveyancing process.

The physical condition of the building should be assessed by appropriately qualified professionals.

8. Budget for Land Transfer Duty

Land transfer duty, often called stamp duty, is usually payable when you buy property in Victoria.

Investment properties generally use Victoria’s general duty rates rather than principal-place-of-residence rates that may apply in other circumstances.

The amount can depend on:

• The property’s dutiable value
• Whether you are a foreign purchaser
• The type of transaction
• Whether an exemption or concession applies

Rather than relying on an old online estimate, use the State Revenue Office’s current land transfer duty calculator.

9. Factor Victorian Land Tax Into Your Ongoing Costs

Land tax is another cost property investors should understand.

Victoria charges annual land tax on taxable land holdings, including residential investment properties.

The general threshold for individuals currently begins when the total taxable site value of relevant Victorian land reaches $50,000. Different thresholds and rates can apply to trusts and other ownership circumstances.

Importantly, land tax is based on the site value of the land, not the purchase price of the property including the building.

The State Revenue Office publishes the current Victorian land tax rates.

If you already own other taxable Victorian property, your combined land holdings may affect the amount payable.

We can manage the conveyancing side of the transaction, but your accountant or tax adviser should advise you on how land tax affects your investment position.

10. Could Vacant Residential Land Tax Apply?

Vacant residential land tax, or VRLT, is separate from ordinary land tax.

VRLT can apply to residential land in Victoria depending on how the property was used during the previous calendar year.

For an established residential property, a key consideration is whether it was vacant for more than six months during the previous calendar year, subject to exemptions and the detailed rules.

You can review the current Victorian vacant residential land tax rules.

The rate can also increase where a property remains liable for VRLT over consecutive years.

If you intend to leave an investment property vacant for an extended period, discuss the tax implications with your accountant or tax adviser.

11. Decide How the Investment Property Will Be Owned Before Signing

Before signing the Contract of Sale, decide who will purchase the property.

Possible arrangements can include:

• One individual
• Joint tenants
• Tenants in common
• A company
• A trust

The right structure depends on circumstances that may include taxation, estate planning, finance and asset protection.

Those decisions sit outside our role as conveyancers.

Speak with your accountant, financial adviser or other appropriately qualified professional before signing if you are unsure about the ownership structure.

Once you have decided how the property will be purchased, we can make sure the conveyancing documents reflect the correct purchaser details.

It is much better to consider this before signing than to try to change the purchasing arrangement later.

12. Make Sure Your Finance Timing Works With the Contract

Home loan pre-approval does not necessarily mean your lender has approved the specific investment property.

Your lender may still need to:

• Value the property
• Assess proposed rental income
• Review your financial position
• Confirm the loan
• Approve the property as security

If your purchase needs to be subject to finance, the finance condition and deadline should be checked before you sign.

A short finance period can create pressure if the lender needs more information or the valuation takes longer than expected.

Tell us about your finance position early so we can consider the relevant conditions and dates when reviewing the contract.

13. Keep Tax Advice Separate From Conveyancing Advice

Investment properties can create tax considerations around rental income, expenses and eventual disposal.

The Australian Taxation Office provides guidance on:

• Rental income
• Rental expenses
• Record keeping
• Deductions
• Properties genuinely available for rent

You can review the ATO’s residential rental property guidance.

We do not provide tax or investment advice.

Speak with your accountant or registered tax adviser about matters such as:

• Rental income
• Interest deductions
• Depreciation
• Capital gains tax
• Ownership structures
• Deductible expenses

These conversations are often best had before you sign the contract.

14. Off-the-Plan Investment Properties Need Extra Checks

An off-the-plan investment property may be purchased before construction is complete.

That creates additional considerations around:

• Sunset dates
• Construction timeframes
• Changes to plans
• Owners corporation arrangements
• Settlement triggers
• Developer special conditions
• Finance timing

You are also making a purchase decision without being able to inspect the completed property.

Our guide to an off-the-plan Contract of Sale in Victoria explains these issues in more detail.

If you are purchasing an investment property off the plan, have the contract reviewed before signing.

15. What Happens at Settlement?

Settlement is when the balance of the purchase price is paid and ownership transfers to you.

As part of our investment property conveyancing service, our team can:

• Liaise with your lender
• Prepare transfer documents
• Complete relevant duty requirements
• Check settlement figures
• Account for relevant adjustments
• Prepare the electronic settlement
• Confirm when settlement has completed

Where the investment property already has a renter, rental-related information and adjustments may also need to be considered.

Our property conveyancing service covers the broader transfer process from contract through to settlement.

You can also read our guide explaining what happens on settlement day.

Before settlement, buyers should also complete a final inspection where appropriate. Our pre-settlement inspection checklist explains what to look for.

Investment Property Buying Checklist Victoria

Before signing for an investment property, work through these checks:

What to check	Why it matters
Contract of Sale	Sets the conditions, dates and obligations of your purchase
Section 32	Provides important disclosures about the property
Title	Can reveal registered restrictions affecting the property
Existing renter	The rental agreement may continue after settlement
Rental agreement	Helps you understand the existing rental arrangement
Owners corporation	May create ongoing fees and special levies
Building condition	Can affect repair costs and rental readiness
Rental minimum standards	The property must meet applicable Victorian requirements
Finance	Needs to work with the contract deadlines
Land transfer duty	Adds to the upfront cost of buying
Land tax	May add to ongoing ownership costs
VRLT	May apply if the property remains vacant
Ownership	Should be decided before you sign
Settlement	Completes the transfer of ownership

Frequently Asked Questions About Investment Property in Victoria

Need Help Buying an Investment Property in Victoria?

If you have found a property and received the Contract of Sale and Section 32, we can review the documents before you commit.

Our licensed conveyancing team can help you understand the contract, property disclosures and settlement requirements and guide you through the conveyancing process from purchase through to completion.

Get Help With Your Investment Property Purchase