Point Cook investor reveals why he regrets Vic property portfolio

Arut and Uma Jothi began investing in property to build a better future for their kids, Midhurna, 14, and Athma, 13. Picture: Jake Nowakowski.

Arut and Uma Jothi are among the investors living in Melbourne’s 3030 postcode.

And their reason for becoming landlords was simple: their kids Midhurna, 14, and Athma, 13.

Mr Jothi said his entire property portfolio was in the same postcode he lived in and he was surprised to hear the area was home to the nation’s highest number of landlords by postcode.

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Latest tax data shows there were more than 12,500 others just like them in the same area.

He added that he had long struggled with government narratives that landlords were wealthy or high-income earners.

“Pretty much, I just want a better future for my kids,” he said.

“We aren’t cashed up. They are under $1m properties, and we started investing first while I was renting.”

His family has also been proud to help put a roof over the head over dozens of families over the years.

Mr Jothi said he had a number of friends locally who were also property investors, and noted all of them used negative gearing to make ends meet.

While interest rate hikes and land tax rises had made paying multiple mortgages challenging, Mr Jothi said the most concerning moments had been when governments began talking about removing negative gearing tax benefits.

The family have begun to second guess their decision as a result of government decisions. Picture: Jake Nowakowski.

“One of the main reasons we can keep them is the depreciation, otherwise I wouldn’t be able to hold them,” Mr Jothi said.

“We aren’t high-end income earners, we don’t have surplus funds.

“So when they were talking about that, we were all panicked.”

However as land tax changes were implemented in 2024 he said he had come to regret investing in Victoria.

In addition to the increased cost, the tax has been linked to limited value growth in Melbourne as it drove a number of landlords to sell up creating an overabundance of homes for sale in some areas.

As he watched prices surge in other capitals, Mr Jothi said the main thing that stopped him from selling up and reinvesting were concerns over his ability to understand property markets interstate – particularly given more frequent flooding events in Queensland and NSW.

“But I wouldn’t be buying anything in Victoria now,” he said.

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