MORE than 250 suburbs around Australia are predicted to double in value in the next 10 years.
This is great news for Ipswich investors with rising prices and rising rental returns.And tenants in almost 800 suburbs are potentially set to see their weekly rent double in the same time, according to new research by RP Data.
The real estate data firm’s Autumn Investor Guide has revealed the nation’s top property investment prospects include 263 suburbs or towns with the potential to see 100 per cent growth in the next decade, 792 where rental growth will do likewise, and 582 suburbs where rental margins are currently topping 5.5 per cent.
It is thought these factors will make the suburbs a hit with investors, but they may also prove a nightmare for those renting and trying to get their feet on the property ladder.
Despite house prices tumbling from this time in 2010 until about May last year, Victoria is the nation’s most likely state to see property values double, according to the report.
The real estate data analysis firm tipped houses to double in Williams Landing (current median $407,970), while units are set to do likewise in Derrimut ($391,589) and Travancore ($443,507).
Among the nation’s capital cities, the top earners over the past five years, and top picks to see values double in the next 10 are extremely varied.
Berrimah in Darwin tops the list with a 25.7 per cent average annual growth over the past five years, followed by Deakin, Canberra, and Potts Point, Sydney, at 19.8 per cent, and Williams Landing in Melbourne at 19.4 per cent.
RP Data analyst Cameron Kusher said a large number of the tipped property winners are in regional Queensland, NSW and WA – with mining growth a significant factor in their performance recently and a major element of their future prosperity.
“We don’t necessarily say that that is going to continue, but there are some good opportunities from over the last five years,” he said.
Mr Kusher said that while not all the suburbs mentioned in the report would continue on trend, those hoping to buy or who are still renting could take heart that many others would not see such dramatic growth.
“From the investors perspective these are the ones that have done very well in the last five years,” Mr Kusher said.
“(And) there are some (suburbs) in Victoria where rents are falling or haven’t moved.
“Over the past five years some of these areas have done quite well, perhaps they have cooled off over the last year or two.
“Renters in Sydney are most likely to feel the pinch if the predictions, based on growth over the past five years, come to pass.”
A whopping 249 suburbs have been identified in Sydney, including ritzy Vaucluse where rent for houses has grown by about $1015 (15.3 per cent per year) in the past five years and Potts Point, where houses now rent at $377 (13.9 per cent per year) more than they did in 2008.
Perth was a close second, with 181 suburbs tipped for a potential rental price double.
Houses in Menora are expected to see median rents double after they rose from $400 in 2008 to $1,100 currently, according to the RP Data figures.
Report co-author and RP Data analyst Tim Lawless said the growth had been predicted on suburbs with annual growth topping 7.2 per cent.
“By using a scenario based on compounding growth calculation, the value of an asset will double in ten years if it records an annual increase of 7.2 per cent,” Mr Lawless said.
“Based on this measure we have identified 263 suburbs where values are on track to double over a ten year period and 792 where weekly rents are on track to double over ten years.”
Mr Lawless said that investors were encouraged to view the free report as a guide or starting point for investigating investment opportunities.
Article originally published in Couriermail.com.au by Nathan Mawby 23/4/13
Queensland landlords, property managers go above and beyond
The team Australia mantra has not been lost on Queensland landlords and property managers, with new research showing they have performed more than double the heavy lifting expected of them.
With over 1,200 REIQ property management member agencies surveyed throughout Queensland, the results show that only 6.05 per cent of residential rental tenants qualified as “COVID-19 impacted” under the state government’s COVID-19 Emergency Response Regulation.
This represents approximately 3,950 renters from a state total in excess of 577,000 residential tenancies.
Despite 3,950 tenants qualifying, over 10,800 tenants in Queensland have received rental assistance during the COVID-19 pandemic.
REIQ CEO Antonia Mercorella said industry data like this is vital to help understand the essential nature of the real estate sector during unique circumstances such as the COVID-19 pandemic and its role in supporting the broader Queensland economy.
“The role our industry’s property managers have played throughout this pandemic is truly exemplary,” Ms Mercorella said.
A tenancy is generally deemed to be “COVID-19 impacted” if a tenant is impacted by COVID-19 in certain ways and, in addition, the tenant has suffered a loss of income of 25 per cent or more, or the rent payable is 30 per cent or more of a person’s income.
A majority of negotiations achieved a satisfactory outcome regarding temporary rent reductions, with fewer than 800 referred to the Residential Tenancies Authority for further conciliation.
The bulk of these temporary rent reduction reviews took place across Brisbane (37.2 per cent), Gold Coast (14.88 per cent),Coast (12.09 per cent) and Cairns (6.51 per cent), with the majority of tenants requiring a rent reduction of up to $100 per week (69.3 per cent).
A further 23.72 per cent of rental tenants have required a temporary rent reduction of up to $200, 5.12 per cent a reduction of up to $300, and 1.86 per cent a reduction of over $300 which represents just over 200 tenants.
This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.
Only 6% of renters qualified as “COVID-19 impacted”: REIQ
A recent industry survey conducted by the Real Estate Institute of Queensland (REIQ) reveals that Property Managers across Queensland’s real estate industry have performed more than double the amount of ‘heavy lifting’ when it comes to rent negotiations between landlords and rental tenants.
This is outside of the Palaszczuk Government’s Residential Tenancies and Rooming Accommodation (COVID-19 Emergency Response) Regulation 2020.
REIQ CEO Antonia Mercorella says industry data like this is vital to help understand the essential nature of the real estate sector during unique circumstances such as the COVID-19 pandemic and its role in supporting the broader Queensland economy. “This member survey aimed to identify a whole-of-industry snapshot in regards to the important role and to what scale our sector played in negotiating temporary reduced rents on behalf of more than 14,000 rental tenants with their landlords,” explains Ms. Mercorella. “Real estate professionals manage close to 600,000 Queensland households through property management services. The demand for more effective recognition of our industry during any future crisis of this nature is now more apparent, with property managers overseeing more than a double caseload of temporary rent reduction requests from tenants suddenly faced with the inability to fulfil their rent obligations.”
With over 1,200 REIQ property management member agencies surveyed throughout Queensland, the results show that only 6.05% of residential rental tenants qualified as “COVID-19 impacted” under the State Government’s COVID-19 Emergency Response Regulation. This represents approximately 3,950 renters from a State total in excess of 577,000 residential tenancies (Census, 2016). A tenancy is generally deemed to be “COVID-19 impacted” if a tenant is impacted by COVID-19 in certain ways and in addition, the tenant has suffered a loss of income of 25% or more, or the rent payable is 30% or more of a person’s income. A majority of negotiations achieved a satisfactory outcome regarding temporary rent reductions, with fewer than 800 referred to the Residential Tenancies Authority for further conciliation.
Furthermore, Property Managers proactively negotiated an additional 14% of temporary rent reduction requests beyond the COVID-19 Emergency Response Regulation, representing over 10,800 residential tenancies. That’s more than double the amount of qualified lease renegotiations recognised as ‘COVID-19 impacted.’ The bulk of these temporary rent reduction reviews took place across Brisbane (37.2%), Gold Coast (14.88%), Sunshine Coast (12.09%) and Cairns (6.51%) with the majority of tenants requiring a rent reduction of up to $100 per week (69.3%). A further 23.72% of rental tenants have required a temporary rent reduction of up to $200; 5.12% a reduction of up to $300; and, 1.86% a reduction of over $300 which represents just over 200 tenants.
“By the time the Prime Minister’s proposed protective measures for residential tenancies via a six-month moratorium on evictions reached the Palaszczuk Government, a highly-coordinated industry campaign for more fair and balanced protections for both tenants and landlords ensued,” says Ms. Mercorella. “However, the REIQ recognised that many rental tenants and landlords simply couldn’t wait. Large scale job losses were already in motion, with the entertainment, events, food and beverage, and tourism industries virtually grinding to a halt overnight. As a result, we were quick to work proactively with Property Managers across our member agencies to achieve an immediate framework of resources for tenants and property owners in significant financial distress to come together to negotiate temporary rent reductions in order reach an amicable outcome for both parties.
“The role our industry’s Property Managers have played throughout this pandemic is truly exemplary,” adds Ms. Mercorella.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
Gold Coast villa is Australia’s most popular Airbnb
A LUXURY Hinterland villa in Mount Nathan has been crowned Australia’s most popular Airbnb listing for 2017.
A STUNNING outlook over the lush green hinterland, a 25m lap pool set up for dive in movies, sunset views from the spa and you can bring your dog (or horse!).
A luxury hinterland villa in Mount Nathan has been named Australia’s most ‘wishlisted’ Airbnb, beating out capital city hot spots.
Topping the list for Australia, the Gold Coast residence is a “luxurious loft-style villa”, with room for 10 people, set on a sprawling four ha property and can be rented for $129 per night.
The host, former financial planner and Vanuatu expat, Kerri-Lea, is an equine enthusiast and there are horses on the property.
“This family plays polocrosse, has horses and stables with daily commitments,” according to the listing.
“The family home is the main house.”
They can also visit nearby award-winning Mount Nathan Winery, the Gold Coast’s theme parks, between a six to 10-minute drive away, or drive to our famous beaches in less than 30 minutes.
It’s listed in good company — the most popular listing in the UK was a Victorian castle, a sea cottage was Denmark’s ‘most wishlisted’, and a lakeside villa topped the travel bucket list in Switzerland.
The top gong comes as the Gold Coast Bulletin reported an Airbnb boom, tipped to contract the tight long-term rental market further as fewer properties are available.
Originally Published: www.news.com.au
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