Australian Property Investor Magazine https://www.apimagazine.com.au Passionate about protecting the interests of our audience of investors, homebuyers and property professionals through best in market property education, information and research. 2024-03-19T15:18:26-08:00 2024-03-19T16:02:18-08:00 https://cyber.harvard.edu/rss/rss.html en-au https://www.apimagazine.com.au/privacy-policy editor@apimagazine.com.au (Craig Francis) Umbraco https://www.apimagazine.com.au/Images/API-Logo-Block.png Australian Property Investor Magazine https://www.apimagazine.com.au 144 144 Australia's best property options under $500,000 - but don't bother looking in Sydney https://www.apimagazine.com.au/news/article/australias-best-property-options-under-500-000-but-dont-bother-looking-in-sydney?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/australias-best-property-options-under-500-000-but-dont-bother-looking-in-sydney?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Buyers looking for real estate priced below $500,000 may feel they're facing mission impossible but there are capital city suburbs and regional areas where liveable properties can be found on this budget. <p>Are there any decent properties that can be bought in Australia for less than half a million dollars these days?</p> <p>In the face of record property prices, first home buyers, separated couples and some property investors looking to bolster a portfolio can face daunting affordability hurdles.</p> <p>Buying residential property under $500,000 anywhere in Australia is mostly limited to outer metropolitan suburbs and regional areas for houses, while units or apartments do exist closer to town but will commonly be one-bedroom or studio within a greater metro area.</p> <p>Property affordability in 2024 is a particular challenge, with prices of the most affordable 25 per cent of the market rising the fastest of all price quartiles, at 2.4 per cent in the three months to February.</p> <h4 class="mbn"><strong>Lowest median suburb prices by state capitals</strong></h4> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tbody> <tr> <th colspan="5" width="100%"> <h4 class="mbn">HOUSES</h4> </th> </tr> <tr> <th>Suburb</th> <th>State</th> <th>Capital City</th> <th>Region</th> <th>Median Price</th> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=4056&amp;text=Gawler%20West%20SA%205118" target="_blank">Gawler West</a></td> <td>SA</td> <td>Adelaide</td> <td>Adelaide - North</td> <td>$402,022</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=2541&amp;text=Forest%20Hill%20QLD%204342" target="_blank">Forest Hill</a></td> <td>QLD</td> <td>Brisbane</td> <td>Ipswich</td> <td>$411,797</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=7663&amp;text=Bridgewater%20TAS%207030" target="_blank">Bridgewater</a></td> <td>TAS</td> <td>Hobart</td> <td>Hobart</td> <td>$417,572</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=10396&amp;text=Medina%20WA%206167" target="_blank">Medina</a></td> <td>WA</td> <td>Perth</td> <td>Perth - South West</td> <td>$422,402</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=3279&amp;text=Woodroffe%20NT%200830" target="_blank">Woodroffe</a></td> <td>NT</td> <td>Darwin</td> <td>Darwin</td> <td>$424,700</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=14577&amp;text=Melton%20VIC%203337" target="_blank">Melton</a></td> <td>VIC</td> <td>Melbourne</td> <td>Melbourne - West</td> <td>$468,766</td> </tr> <tr> <th colspan="5" width="100%"> <h4 class="mbn">UNITS</h4> </th> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=4685&amp;text=Thornlie%20WA%206108" target="_blank">Thornlie</a></td> <td>WA</td> <td>Perth</td> <td>Perth - South East</td> <td>$401,912</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=9273&amp;text=Rapid%20Creek%20NT%200810" target="_blank">Rapid Creek</a></td> <td>NT</td> <td> Darwin</td> <td>Darwin</td> <td>$402,713</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=9935&amp;text=New%20Port%20SA%205015" target="_blank">New Port</a></td> <td>SA</td> <td>Adelaide</td> <td>Adelaide - West</td> <td>$403,562</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=6420&amp;text=Kingston%20QLD%204114" target="_blank">Kingston</a></td> <td>QLD</td> <td>Brisbane</td> <td>Logan - Beaudesert</td> <td>$403,819</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=661&amp;text=Notting%20Hill%20VIC%203168" target="_blank">Notting Hill</a></td> <td>VIC</td> <td>Melbourne</td> <td>Melbourne - South East</td> <td>$404,243</td> </tr> <tr> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=12535&amp;text=New%20Norfolk%20TAS%207140" target="_blank">New Norfolk</a></td> <td>TAS</td> <td>Hobart</td> <td>Hobart</td> <td>$409,993</td> </tr> </tbody> </table> <p class="caption">Source: REA Group</p> <p>Lending is also being squeezed, with January ABS figures showing an average owner-occupier loan fell 1.5 per cent, from $624,000 to $615,000.</p> <p>The number of investor loans also fell 2.6 per cent, though still a year-on-year increase of 18.5 per cent and was the strongest over the year to January 2024 in Queensland (up 22.6 per cent), Western Australia (up 63.1 per cent) and South Australia (41.7 per cent), which by no coincidence are states with the capital city rental markets below 1 per cent vacancy.</p> <p>Enter the sub-$500,000 market&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/australias-best-property-options-under-500-000-but-dont-bother-looking-in-sydney?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Ev Foley) Residential 2024-03-19T15:18:26-08:00 Interest rates on hold but mid-year cut now looking unlikely https://www.apimagazine.com.au/news/article/interest-rates-on-hold-but-mid-year-cut-now-looking-unlikely?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/interest-rates-on-hold-but-mid-year-cut-now-looking-unlikely?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles BREAKING NEWS: The RBA has kept interest rates on hold at 4.35 per cent but expectations of a rate cut within the next few months are diminishing as economic conditions force the reserve bank's hand. <p>Borrowers can take solace in the realisation that interest rates have probably hit their peak, with the Reserve Bank of Australia keeping the official cash rate at 4.35 per cent at its March meeting held Tuesday (19 March).</p> <p>That optimism, however, is being tempered by the prospect of a mid-year rate cut growing increasingly remote.</p> <p>Economists and finance experts have all but abandoned predictions of a mid-year reprieve for borrowers, with a near unanimous opinion emerging that interest rates will remain where they are until late 2024 or into next year.</p> <p>The big four banks had a few months ago tipped inflation to be low enough to allow rate cuts by mid-2024 but their predictions have since tempered.</p> <ul> <li>ANZ predicts that the current level of 4.35 per cent will be the cash rate’s peak, with the first cuts to start around November 2024, and rates dropping to a level of around 3.60 per cent by mid-2025.</li> <li>CommBank predicts that the current level of 4.35 per cent will be the cash rate’s peak and that the first cut is likely to occur around September, with rates eventually dropping to around 2.85 per cent by the middle of 2025.</li> <li>NAB economists predict that the current level of 4.35 per cent is the cash rate’s peak, with the first cuts to occur in the December quarter of 2024, and rates reducing to 3.10 per cent by the end of 2025.</li> <li>Westpac predicts that the current level of 4.35 per cent will be the cash rate’s peak and that we might expect the first rate cuts to occur around September, with the cash rate eventually settling at 3.10 per cent in the September quarter of 2025.</li> </ul> <p>An increase in the cash rate is now very doubtful, with <a rel="noopener noreferrer" href="/news/article/barrage-of-interest-rate-cuts-may-be-just-around-the-corner" target="_blank">a succession of eventual falls in the cash rate</a> more likely.</p> <p>Matthew Greenwood-Nimmo, Associate Professor of Economics, University of Melbourne saw no reason strong enough to prompt an RBA rethink on rates.</p> <p>“I think the cash rate is likely to be maintained at the current level for some time, until the economic climate justifies a rate change.</p> <p>“It seems &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/interest-rates-on-hold-but-mid-year-cut-now-looking-unlikely?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Finance 2024-03-19T01:30:00-08:00 There’s more to property investment than residential houses https://www.apimagazine.com.au/news/article/there-s-more-to-property-investment-than-residential-houses?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/there-s-more-to-property-investment-than-residential-houses?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles An array of real estate investment options offer canny investors the prospect of a more productive and diversified property portfolio. <p>With the Australian residential real estate market amounting to $10.3 trillion and the Australian commercial real estate market reaching $1.3 trillion at the start of 2024, this lucrative industry with its potential for long-term growth, diversification and various income streams, stands out as a resilient and rewarding investment option.</p> <p>But there is a multitude of lucrative avenues for investors to explore.</p> <p>Among the various types of property investment options, each presents unique opportunities, as well as its own set of risks, rewards and considerations for investors.</p> <h2><strong>Residential rental properties</strong></h2> <p>Residential rental properties encompass houses, apartments, or townhouses leased out to tenants.</p> <p>Investing in residential real estate offers stability and <a rel="noopener noreferrer" href="/news/article/rental-availability-hits-record-low-nationally" target="_blank">steady cash flow through rental income</a>. Moreover, the demand for rental housing remains robust, providing investors with a reliable source of revenue.</p> <p>However, it’s crucial for investors to conduct thorough market research and property analysis to identify high-demand areas and ensure favourable rental yields.</p> <h2><strong>Commercial properties</strong></h2> <p>Examples of commercial properties include office buildings, retail spaces, or warehouses leased to businesses. Investing in commercial real estate offers the potential for higher returns, longer lease terms, and lower vacancy rates compared to residential properties.</p> <p><a rel="noopener noreferrer" href="/news/article/eight-steps-to-becoming-a-successful-commercial-property-investor" target="_blank">Commercial real estate requires careful consideration of market trends</a>, tenant stability and property management strategies to mitigate risks effectively.</p> <h2><strong>Industrial properties</strong></h2> <p>A specific type of commercial property, industrial properties encompass factories, manufacturing facilities, or distribution centres used for production or storage purposes.</p> <p>Investing in industrial real estate offers investors exposure to essential sectors of the economy, such as manufacturing and logistics.</p> <p>With the rise of e-commerce and global trade, industrial properties have become increasingly attractive to investors seeking reliable income strea&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/there-s-more-to-property-investment-than-residential-houses?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Bradley Beer) Investment 2024-03-18T13:16:37-08:00 Greater investor returns, crucial supply – so why is dual occupancy housing so scarce? https://www.apimagazine.com.au/news/article/greater-investor-returns-crucial-supply-so-why-is-dual-occupancy-housing-so-scarce?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/greater-investor-returns-crucial-supply-so-why-is-dual-occupancy-housing-so-scarce?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Homes purpose built to hold a multigenerational household can lift overall property value by up to 20 per cent and adds around a third extra to an investment property’s rental income but remain scarce. <p>Dual occupancy detached housing provides two separate residences on the same titled allotment. A main residence and an ancillary dwelling are supplied, in which the ancillary or secondary dwelling is smaller than the main residence.</p> <p>Typically, up to five bedrooms and between two and three cars (on site) are permitted in a dual occupancy detached house, with the ancillary dwelling having one or two bedrooms.</p> <p>While they should, in my mind, be the same everywhere, planning regulations vary among local councils across Australia. This lack of conformity (with very clear guidelines) is holding back the creation of this important dwelling stock.</p> <p>At present one in five of Australia’s households hold two generations and some 10 percent hold three generations. These figures are expected to rise to around 25 and 15 per cent respectively within the next decade.</p> <p>Yet the <a rel="noopener noreferrer" href="/news/article/rental-availability-hits-record-low-nationally" target="_blank">supply of housing</a> that caters well for multi-generational and multiple tenants is in short supply.</p> <p>Our work suggests this demand could be as high as 25 per cent, yet we estimate, less than 5 per cent of Australia’s existing housing stock successfully caters to this market.</p> <p>For investors, dual occupancy product already shows a much higher return than most <a rel="noopener noreferrer" href="/news/article/what-are-the-different-property-types-in-australia" target="_blank">other housing types</a>. More people are sharing accommodation and a key to getting a better rental yield is to hold property that facilitates sharing. Two sources of rental income are often better than one.</p> <p>For owner occupiers, such dwellings appeal to multi-generational households. This product also appeals to first home buyers and empty nesters too.</p> <h2><strong>Future housing demand evolving</strong></h2> <p>What does the future hold?</p> <p>Our work suggests that demographics play a vital role in shaping future housing demand. So, what does Australia’s demographic shape look like over the next decade?</p> <p>Two demographic segments are set to feature: ageing Baby Boomers, and Millennials.</p> <p>Most ageing baby boomers look to downsize and/or retire in their local area. But many are not that interested in trad&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/greater-investor-returns-crucial-supply-so-why-is-dual-occupancy-housing-so-scarce?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Investment 2024-03-18T12:16:43-08:00 Land, diversity key to building a successful property portfolio https://www.apimagazine.com.au/news/article/land-diversity-key-to-building-a-successful-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/land-diversity-key-to-building-a-successful-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Financial independence based on property usually requires at least three productive assets in a portfolio, but a few tips need to be followed to achieve that goal. <p><span>Around 2.2 million Australians own an investment property. Of these, the majority (70 per cent) own just one. </span></p> <p><span>The reality is that financial independence can’t be achieved by owning one investment property. While everyone has different needs and definitions of financial independence, for most people they are going to need at least three or more properties to attain financial independence.</span></p> <p><span>Only a small minority (10 per cent) of property investors own three or more investment properties.</span></p> <p><span>What separates the majority from the more successful minority? </span></p> <p><span>The majority of investors will tell you their criteria is all about location, location, location.</span></p> <p><span>Yes, location is one of the aspects you should consider, but there are two others that are just as, if not more important; land content and timing. </span></p> <p><span>The minority therefore will tell you it’s about land content, timing and location.</span></p> <p><span>When it comes to investing in property, location is not about “picking the worst house in the best street” as you’ll hear many pundits suggest.</span></p> <p><span>That’s perhaps more relevant when choosing a home to live in.</span></p> <p><span>What’s most important when it comes to property investment is choosing a block of land with a house on it, rather than a unit or townhouses. </span></p> <p><span>The median house price has increased in Sydney by a multiple of seven over the past 30 years. Land has increased by double that rate. Despite this, the majority of investors buy units.</span></p> <p><span>Land component is a crucial aspect to consider when investing. </span></p> <p><span>It is the part of your investment that will actually grow in value. The building on the land, which you need to rent out to secure those all-important weekly rental payments, will start depreciating in value from the moment it is built.</span></p> <p><span>But land, which is a finite resource, continues to grow in value. And the higher the land component the more options you have of doing something with it in the future to value-add to your investment. That could be in the form of a <a rel="noopener noreferrer" href="/news/article/surge-in-granny-flats-as-borrowers-seek-mortgage-busting-income" target="_blank">granny flat</a>, <a rel="noopener noreferrer" href="/news/article/where-and-how-property-investors-can-maximise-subdivision-profits" target="_blank">subdividing the land</a> or, if it’s big &hellip;</span></p> <a href='https://www.apimagazine.com.au/news/article/land-diversity-key-to-building-a-successful-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (James Fitzgerald) Investment 2024-03-17T02:46:11-08:00 Rental availability hits record low nationally https://www.apimagazine.com.au/news/article/rental-availability-hits-record-low-nationally?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/rental-availability-hits-record-low-nationally?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The prospect of finding a rental property in Australia continues to deteriorate, with the vacancy rate nationally hitting another low and three state capitals falling below 1 per cent. <p>The Australian rental market continues to go from bad to worse.</p> <p>The latest figures from PropTrack make for shocking reading for prospective and current renters, with the national vacancy rate declining 0.12 percentage points in February to 1.07 per cent.</p> <p>Perth has the worst rental market in the country with a vacancy rate at a miserable 0.75 per cent, with Adelaide (0.83 per cent) and Brisbane (0.95 per cent) not far off that mark. A balanced market is regarded as being in the 2 to 3 per cent range.</p> <p>Paul Ryan, Senior Economist, PropTrack, said little respite was coming for beleaguered renters.</p> <p>“With rental market conditions extremely tight, competition for rentals is likely to remain tough,” he said.</p> <p>“In the near-term, that is likely to continue to put pressure on rents and further strain rental affordability, which is already at its worst level in at least 17 years.”</p> <p>Capital cities and regional areas both saw a decline in availability, with a larger fall in capital cities.</p> <p>The lack of available properties for rent is creating unprecedented competition for the limited listed properties and driving up rents.</p> <p>Singling out Perth’s chronically deprived rental market, where <a rel="noopener noreferrer" href="/news/article/perth-top-10-suburbs-eclipse-30-per-cent-growth-as-investors-dig-deeper-for-value" target="_blank">property price growth is also leading the nation</a> and making it harder to get a foothold on the property ladder, Mr Ryan said rents have risen 17 per cent over the past year in Western Australia.</p> <p>The interactive map below highlights where rents in Perth are at their most stressed.</p> <p><iframe src="https://flo.uri.sh/visualisation/17116542/embed" title="Interactive or visual content" class="flourish-embed-iframe" frameborder="0" scrolling="no" style="width: 100%; height: 600px;" sandbox="allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation"></iframe></p> <div style="width: 100%!; margin-top: 4px!important; text-align: right!important;"><a style="text-decoration: none!important;" href="https://public.flourish.studio/visualisation/17116542/?utm_source=embed&amp;utm_campaign=visualisation/17116542" target="_top" class="flourish-credit"><img style="width: 105px!important; height: 16px!important; border: none!important; margin: 0!important;" src="https://public.flourish.studio/resources/made_with_flourish.svg" alt="Made with Flourish" /> </a></div> <p>“We’re still looking at seeing <a rel="noopener noreferrer" href="/news/article/inflation-tamed-but-housing-costs-still-hurting-renters-and-investors-alike" target="_blank">double digit rent growth over 2024</a>, given where rental vacancy rates are and the momentum in rents at the moment, unfortunately,” Mr Ryan said.</p> <p>“Areas such as <a rel="noopener noreferrer" href="/research/suburb-profile?id=3654&amp;text=Mundaring%20WA%206073" target="_blank">Mundaring</a> hit 29 per cent over the past 12 months and there’s a bunch of Perth regions that are above 20 per cent over the past 12 months.</p> <p>“With conditions as they are now, it’s looking like we’ll see many regions top 20 per cent rent growth again this year (and) it wouldn’t surprise me if we saw another year of a very strong rent growt&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/rental-availability-hits-record-low-nationally?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-03-15T08:53:01-08:00 Will the push for higher density impact property investors and prices? https://www.apimagazine.com.au/news/article/will-the-push-for-higher-density-impact-property-investors-and-prices?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/will-the-push-for-higher-density-impact-property-investors-and-prices?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles If suburban sprawl is a thing of the past and urban density the solution, how will this affect property prices? <p>Australia’s governments are in agreement: the age of suburban sprawl is over.</p> <p>To cope with a growing population, Australia’s cities need to build up, not spread out.</p> <p>If this reorientation of urban planning comes to pass it will prove a landmark change. But what effect will it have on property prices?</p> <p>Let’s take a look at what is being proposed.</p> <h2><strong>The need for urban consolidation</strong></h2> <p>Melbourne and Sydney are headed for populations of 6.1 million by 2033, according to the Treasury’s Centre for Population.</p> <p>It’s projections like this which have spurred state governments into action.</p> <p>In Melbourne, the government’s plan is to develop around a million new homes in established suburbs.</p> <p>In New South Wales, <a rel="noopener noreferrer" href="/news/article/nimbys-v-yimbys-solving-sydney-s-rental-crisis-and-chronic-housing-shortage" target="_blank">the state has identified target areas for development</a> focused mostly around train stations.</p> <p>In Brisbane, Lord Mayor Adrian Schrinner is planning to build 115,000 homes to <a rel="noopener noreferrer" href="/news/article/how-is-bursting-brisbanes-population-shaping-the-property-market" target="_blank">accommodate population growth</a>.</p> <p>The Western Australian State Government has a published target of 49 per cent infill development under the <em><a href="/news/article/rapid-growth-prompts-rethink-on-how-to-house-perths-population">Perth and Peel @ 3.5 million frameworks</a></em>.</p> <p>The reason governments are rejigging guidelines is suburban sprawl comes with real costs.</p> <p>Building the infrastructure to serve new suburbs on the fringe (greenfield development) costs taxpayers between three to eight times what it does in established suburbs.</p> <p>And that spending is put into light when we consider how big (geographically) Australian cities are.</p> <p>Melbourne is Australia’s largest urban area and the 32nd largest in the world at 2,453 square kilometres. Its metro area currently houses around 5 million people. Compare that to the London metro area, which is around the same size but home to 14.8 million people.</p> <p>Sydney is 43rd in terms of its footprint of 2,037 square kilometres. While its 1,900 people per square kilometre looks tight in Australian eyes, it’s one of the least densely populated cities in the world, with just 59 per cent of the density of the Los Angeles metro area.</p> <p><a rel="noopener noreferrer" href="/news/article/perths-aversion-to-high-density-living-impacting-housing-supply" target="_blank">Perth now holds the dubious disti&hellip;</a></p> <a href='https://www.apimagazine.com.au/news/article/will-the-push-for-higher-density-impact-property-investors-and-prices?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Development 2024-03-15T06:50:52-08:00 Five pitfalls every first home buyer and investor should avoid https://www.apimagazine.com.au/news/article/five-pitfalls-every-first-home-buyer-and-investor-should-avoid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/five-pitfalls-every-first-home-buyer-and-investor-should-avoid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Buying a property is a long-term investment but there are five crucial things every buyer should be aware of to avoid long-term pain and expenses. <p>Whether you’re a first-time homebuyer eager to step into home ownership or an investor looking to expand your portfolio, the process can be both exhilarating and daunting.</p> <p>Amidst the excitement, it’s crucial to approach property purchases with a keen eye for potential issues that could have long-term consequences.</p> <p>Beyond the cosmetic appeal of a property, there are critical factors to consider during inspections to avoid costly pitfalls down the road.</p> <p>Five key considerations for first-time homebuyers and property can impact lending, risk assessment and future resale value.</p> <h2><strong>Locating the perfect property</strong></h2> <p>The <a rel="noopener noreferrer" href="/news/article/five-tips-for-buying-best-investment-property-hint-its-not-just-location" target="_blank">location of a property</a> plays a crucial role in its desirability, resale value, and rental income potential.</p> <p>Factors like noise pollution, environmental hazards such as flood and bush fire zones and zoning restrictions can significantly impact a property’s appeal and long-term viability.</p> <p>Assessing the neighbourhood’s amenities, infrastructure and future development plans is essential for homebuyers and investors alike.</p> <p>Lenders and valuers consider location-related factors when assessing property risk, as they can influence resale prospects and market demand. Properties in undesirable locations may face challenges in attracting buyers or tenants, affecting their investment potential, in the short and long term.</p> <h2><strong>Pests not a petty concern</strong></h2> <p>Pest infestations can quickly turn a dream property into a nightmare, causing extensive damage and health hazards.</p> <p>From termites gnawing away at wooden structures to rodents spreading disease, pests can wreak havoc on a property's integrity.</p> <p>Identifying termite nests, droppings or signs of infestation during inspections is crucial.</p> <p>This can be a huge property risk, as they can lead to costly repairs and decreased property value.</p> <p>Moreover, a history of pest problems may deter future buyers or tenants, affecting resale prospects and rental income.</p> <p>A building and pest inspection should be carried out before a deposit is p&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/five-pitfalls-every-first-home-buyer-and-investor-should-avoid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Investment 2024-03-14T12:20:39-08:00 'Nonsensical' policies only diverting attention from real causes of rental crisis https://www.apimagazine.com.au/news/article/nonsensical-policies-only-diverting-attention-from-real-causes-of-rental-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/nonsensical-policies-only-diverting-attention-from-real-causes-of-rental-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles It's time to stop dissuading property investors from entering the market and focus on measures that will encourage more housing supply to cope with rapid population growth and a chronic rental crisis. <p>As the rental crisis gets worse by the month, it is no surprise to see nonsensical proposals put out by various sectors of our community.</p> <p>Commercial realism is what is needed to deal with the plain and simple equation that our population has been growing at record levels while our supply of rental properties fails to keep up with the construction levels needed to house this increased population.</p> <p>Worse, no significant new supply will come online for another five or more years and likely exacerbate <a rel="noopener noreferrer" href="/news/article/median-weekly-rents-break-records-crashing-through-600-barrier" target="_blank">the rental crisis</a>.</p> <p>What we need to do is encourage more investors to buy existing properties that are being built and to particularly encourage institutional and high wealth Australians to invest in build-to-rent and similar types of large-scale residential properties.</p> <p>However, there are segments of our community that simply don’t understand this and the nonsensical things we have seen include state governments in Queensland and Victoria upping land tax, which just caused many investors to simply sell their properties.</p> <p>The Queensland government at least moved quickly to reverse that decision.</p> <p>We have heard others talking about <a rel="noopener noreferrer" href="/news/article/rent-freezes-a-hot-topic-but-do-they-work" target="_blank">rent freezes</a>, which of course will only add to the unattractiveness of investing and cause many investors to sell.</p> <p>The latest conversations have been <a rel="noopener noreferrer" href="/news/article/to-negative-gear-or-not-to-negative-gear-even-shakespeare-had-his-opinions" target="_blank">about negative gearing</a>.</p> <p>It has been one of the major attractions to encourage investors to buy rental properties. Tamper with this and we will again see investors turning away from real estate.</p> <p>Fortunately, at present our federal government has stated publicly that they will not support any rent freezes nor any changes to negative gearing.</p> <p>Most state governments other than Victoria have realised putting land tax up only causes an exodus of landlords from the market.</p> <p>Even if some measures are introduced, as we saw in Queensland, there will be a reaction that will ultimately cause governments of the day to reverse those decisions.</p> <p>I understand why some believe <a rel="noopener noreferrer" href="/news/article/have-higher-rents-covered-landlords-higher-costs" target="_blank">landlords are somehow overly supported</a> by gove&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/nonsensical-policies-only-diverting-attention-from-real-causes-of-rental-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Building and Construction 2024-03-13T11:26:08-08:00 Perth top 10 suburbs eclipse 30 per cent growth, as investors dig deeper for value https://www.apimagazine.com.au/news/article/perth-top-10-suburbs-eclipse-30-per-cent-growth-as-investors-dig-deeper-for-value?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/perth-top-10-suburbs-eclipse-30-per-cent-growth-as-investors-dig-deeper-for-value?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Perth property prices are soaring but investors are contending with the high prices by searching out smaller properties such as villas and select hotspot suburbs. <p>Perth’s red hot property market has many feeling as if they’ve missed a generational period of price growth.</p> <p>East Coast buyers agents are overinflating price tags for eager eastern states buyers, first home buyers desperate to escape the nation’s most stressed rental market are pushing prices at the lower end of the market through the roof, and villas, flats and townhouses are being embraced like never before.</p> <p>In a rapidly rising market it can be difficult to ascertain true value.</p> <p>Perth property overall, already the <a rel="noopener noreferrer" href="/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide" target="_blank">fastest growing market in the country</a>, is forecast to rise at least another 10 per cent this year, on the back of 18.3 per cent growth in the 12 months to the end of February.</p> <p>Some investors are now asking if the market is still delivering investment potential when competitive buyers are outbidding each other on listed prices by 10 per cent or more.</p> <p>With that 10 per cent get-in-the-game increment potentially erasing a year’s growth, and stamp duty and other transaction and settlement costs, where does long term value lie?</p> <p>Supply, a strong economy and population growth remain the key drivers of Perth’s market.</p> <p>But if <a rel="noopener noreferrer" href="/news/article/property-prices-seem-set-for-growth-but-could-a-world-of-pain-unravel-expectations" target="_blank">global economic and geopolitical factors</a> were to quell the current high levels of demand and persistent global inflation continued to keep interest rates locked in, investors could feasibly be looking at lengthier times to recoup their investment.</p> <h2><strong>Top 10 unit and house suburbs for price growth</strong></h2> <p>Whether its location, price range or property type, there are sectors of the market that are in greater demand than others and with resilient prospects going forward.</p> <p>Most of the action is in the upper and lower portions of the market in terms of price, with outer suburban houses in the $400,000 to $550,000 price range experiencing annual price growth of more than 25 per cent, while suburbs in the $1.1 million to $1.4 million range are moving at that same rate of knots.</p> <h4 class="mbn"><strong>TOP SUBURBS BY ANNUAL CHANGE IN MEDIAN HOUSE PRICE</strong></h4> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tbody> <tr> <th width="10%">Rank</th> <th width="30%">Suburb</th> <th width="30%">Annual median hous&hellip;</th></tr></tbody></table> <a href='https://www.apimagazine.com.au/news/article/perth-top-10-suburbs-eclipse-30-per-cent-growth-as-investors-dig-deeper-for-value?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-03-12T15:05:31-08:00 Property prices seem set for growth but could a world of pain unravel expectations? https://www.apimagazine.com.au/news/article/property-prices-seem-set-for-growth-but-could-a-world-of-pain-unravel-expectations?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/property-prices-seem-set-for-growth-but-could-a-world-of-pain-unravel-expectations?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The Australian property market is widely predicted to continue delivering strong capital growth in 2024 and beyond, but could this expectation unravel as a slew of domestic and international challenges present themselves? <p>Property prices are marching higher and, with interest rate cuts forecast for later in the year when inflation is expected to have been reined in, it’s easy to assume there’s only one way they can continue to go.</p> <p>But <a rel="noopener noreferrer" href="/news/article/fools-or-forecasters-can-expert-property-predictions-be-believed" target="_blank">property price forecasts are notoriously unreliable</a>, as seen with predictions by the big banks and many media commentators and industry experts of price collapses of 20 per cent during Covid when most real estate markets took off in the other direction.</p> <p>So, in the face of so much optimism around where prices are headed in 2024, it’s worth at least keeping an eye on the factors that could turn expectations on their head.</p> <p>Amid a combination of global conflicts and economic risks, as well as numerous issues closer to home, there are still myriad forces that could derail what seems like a relatively buoyant national housing market.</p> <p><a rel="noopener noreferrer" href="/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike" target="_blank">High interest rates</a>, which borrowers are currently enduring, typically drive property prices lower but Australian units and houses alike are less affordable than they have been in decades.</p> <p>For households of all incomes, the share of homes that are affordable is at its lowest in 30 years.</p> <p>It’s not a uniquely Australian circumstance. House prices are high relative to incomes across the rich world. The US, China, Canada and New Zealand are also grappling with high property prices.</p> <p>Domestically, it would seem the ingredients are prepared and ready to serve further price growth.</p> <p>Inflation that has threatened the economic well-being of wage earners is seemingly coming under control (although the Reserve Bank of Australia did seriously consider lifting rates again last month), and the economy has proven resilient to international conflict and geopolitical muscle flexing.</p> <p>Chronic housing supply shortages are fuelling demand, migration is strong and the Albanese Government’s broadening of the <a rel="noopener noreferrer" href="/news/article/tax-cuts-point-to-further-fuel-on-the-property-price-fire" target="_blank">Stage 3 tax cuts later this year</a> will put money in more pockets, and potentially the housing market.</p> <p>Since ebbing in January 2023, house p&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/property-prices-seem-set-for-growth-but-could-a-world-of-pain-unravel-expectations?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Finance 2024-03-12T01:30:00-08:00 Should you buy real estate now or wait until interest rates fall? https://www.apimagazine.com.au/news/article/should-you-buy-real-estate-now-or-wait-until-interest-rates-fall?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/should-you-buy-real-estate-now-or-wait-until-interest-rates-fall?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles At first glance it may make sense to wait for interest rates to fall before buying a property but is that the sensible decision when all the financial variables are factored in? <p>The prospect of an interest rate cut later this year or perhaps early 2025 has property investors in a quandary.</p> <p>Interest rates are always a hot topic when it comes to investing in property, because it can really hurt your cash flow as well as define whether your property will be a positively or negatively geared property.</p> <p>A lot of investors also choose to purchase their property with interest-only loans, and so buying during periods of rising interest rates can impact their decision-making.</p> <p>Many experts are predicting that rates will be relatively stable this year, and an interest rate rise is unlikely.</p> <p>Most are also predicting we might even see an <a rel="noopener noreferrer" href="/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike" target="_blank">interest rate cut by the end of the year</a>, which seems to feel like it is just on the horizon.</p> <p>The big question really is, should you buy now, or should you wait until the interest rates fall to buy an investment property?</p> <h2><strong>Buy now or wait on the RBA?</strong></h2> <p>To be blunt, you generally shouldn’t try to <a rel="noopener noreferrer" href="/news/article/the-art-of-timing-property-market-cycles" target="_blank">time the market</a>.</p> <p>The best time to buy property is when you can afford to buy property, and the short-term pain of higher interest rates for a few months will reap benefits over the long term because we all know that property investing should be done with a long-term mindset.</p> <p>The ups and downs of interest rates should be considered along with your overall investment strategy. Focus your attention on whether a property is likely to bring in better cash flow over the life of the investment rather than the next few months but be sure to be able to cope with current interest rates, including a buffer.</p> <p>If your strategy is focused on capital growth you should be looking at what your property is likely to be worth in the long term whether that be 10, 20 or more years down the track.</p> <h2><strong>Supply and demand impacted by rates</strong></h2> <p>When taking interest rates into the equation, keep in mind that when interest rates are higher you are likely to have less competition from other buyers.</p> <p>This can help buyers wield more negotiation power compared &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/should-you-buy-real-estate-now-or-wait-until-interest-rates-fall?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Lloyd Edge) Investment 2024-03-11T12:47:38-08:00 Eight years to get on property ladder, eight more to acquire eight properties https://www.apimagazine.com.au/news/article/eight-years-to-get-on-property-ladder-eight-more-to-acquire-eight-properties?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/eight-years-to-get-on-property-ladder-eight-more-to-acquire-eight-properties?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles There were myriad obstacles that could've ended the property dreams of Lakhwinder Singh before they started, but his journey towards eight properties in less than a decade is a story every aspiring real estate investor should read. <p>Housing crisis. Rental crisis. Soaring property prices. First home buyer obstacles. Long working hours, flat wages and pay packets eaten up by inflation and cost of living pressures.</p> <p>If you rent, live with parents, flat share or struggle to put a roof over your head it can be difficult to imagine buying one property, let alone build a $5 million property portfolio that spans four states and comprises eight properties.</p> <p>The challenges were even greater – but not insurmountable <span>– </span>for Lakhwinder Singh (38), who had to also contend with migration to a new country and hold down multiple jobs to pay his way through a study program.</p> <p>Digging deep into his reserves of energy and determination after arriving in Australia in 2007, Mr Singh charted his path out of financial penury.</p> <blockquote><strong>The majority of people wait too long to enter the market in the hope of timing the market or saving a big enough deposit for their dream home.</strong></blockquote> <p class="text-center mtn">- <span>Lakhwinder Singh</span></p> <p>Working in low-paying retail jobs and working long hours, he came to the realisation that getting a foot on the property ladder was obligatory if he was to change his life.</p> <p>Through gradual savings accrued with a disciplined lifestyle, by 2013 he’d started to seriously analyse property markets and two years later had purchased his first home, in Elderslie, Sydney.</p> <p>“Property is one of the few asset classes that can be tracked back up to 100 years and history shows that Australian real estate has continued to beat other asset class,” Mr Singh said.</p> <p>“The initial years were a real slog but I dedicated two years continues learning, including through books, property seminars and by meeting other investors, to have enough confidence and knowledge to put first property under contract.”</p> <h4 class="mbn">Lakhwinder’s four-state property portfolio</h4> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tbody> <tr> <th width="5%"> </th> <th width="20%">Suburb</th> <th width="10%">State</th> <th width="10%">Purchased</th> <th width="20%">Purchase price</th> <th width="20%">Current value</th> <th width="15%">Rent ($ p/w)</th> </tr> <tr> <td>1</td> <td><a href="/research/suburb-profile?id=6720&amp;text=Elderslie%20NSW%202570">Elderslie</a></td> <td>NSW</td> <td>2015</td> <td>$500,000</td> <td>$980,000</td> <td>$550</td> </tr> <tr> <td>2</td> <td><a href="/research/suburb-profile?id=15426&amp;text=Loganlea%20QLD%204131">Loganlea</a></td> <td>Qld</td> <td>2016</td> <td>$380,000</td> <td>$720,000</td> <td>$600</td> </tr> <tr> <td>3</td> <td><a href="/research/suburb-profile?id=15426&amp;text=Loganlea%20QLD%204131">Loganlea</a></td> <td>Qld</td> <td>2016</td> &hellip;</tr></tbody></table> <a href='https://www.apimagazine.com.au/news/article/eight-years-to-get-on-property-ladder-eight-more-to-acquire-eight-properties?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Investor In Focus 2024-03-09T01:29:51-08:00 Brisbane's median property price surpasses $800,000 for first time https://www.apimagazine.com.au/news/article/brisbanes-median-property-price-surpasses-800-000-for-first-time?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/brisbanes-median-property-price-surpasses-800-000-for-first-time?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The Brisbane median property price has hit record levels, with unit price growth outpacing houses as the rental market tightened even further. <p>In February, Brisbane experienced another month of positive price growth in the housing and unit markets driven primarily by units and affordable suburbs.</p> <p>This marks the 12th consecutive month of such growth in Brisbane, with houses seeing a rise of 15.7 per cent and units up by 14.8 per cent over this period. This shift in values is significant, <a rel="noopener noreferrer" href="/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide" target="_blank">ranking second only to Perth</a> in terms of market growth performance among all capital cities in Australia.</p> <p>In recent months, Brisbane has consistently surpassed the national average for growth on an annual, quarterly and monthly basis, indicating the enduring strength of its fundamentals. Moreover, Brisbane remains among the top three performing capital city markets across the country over the same recorded time periods.</p> <p>Although month-on-month growth remains positive, the pace of price increase in Brisbane is gradually slowing, albeit slightly.</p> <p>This contrasts with trends observed in other markets across Australia, where the broader CoreLogic national Home Value Index (HVI) reported an acceleration of growth in February compared to January.</p> <p>One factor contributing to the ongoing upward pressure on prices in Brisbane is the low volume of listings throughout the city, which is well below the long-term average.</p> <p>Brisbane buyers have approximately 40 per cent fewer properties listed online and available for sale compared to the long-term average. Furthermore, total listings in Brisbane in February were down by 15.7 per cent compared to the same period twelve months ago, according to SQM Research.</p> <p> </p> <p>Looking on the bright side, newer listings saw a 7.6 per cent increase throughout February compared to the same period last year. There was also a notable uptick in new property listings for buyers to consider throughout February, compared to January.</p> <p>This isn’t unexpected, as many sellers opt to hold off listing their properties too early in the new year. Instead, they prefer to wait until school holidays have ended and most &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/brisbanes-median-property-price-surpasses-800-000-for-first-time?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Melinda Jennison) Residential 2024-03-08T02:21:14-08:00 CBA to shut down all 60 Bankwest branches https://www.apimagazine.com.au/news/article/cba-to-shut-down-all-60-bankwest-branches?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/cba-to-shut-down-all-60-bankwest-branches?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Bankwest is transitioning into a wholly digital banking service and closing its branches, ending 129 years of providing in-person branch service to its customers. <p>Bankwest will close its 60 branches and could shed around 350 jobs by the end of the year.</p> <p>The bank, owned by Commonwealth Bank of Australia (CBA), has announced that it is transitioning into a wholly digital banking service.</p> <p>The move will result in the closure of 45 Bankwest branches by October 2024. The completion of this transition will result in another 15 regional Bankwest locations becoming CBA branches by the end of 2024.</p> <p>Bankwest Executive General Manager Jason Chan said he recognised “the change would be challenging for some customers” but said 97 per cent of all Bankwest transactions were now completed digitally and fewer than two per cent of customers visited a branch regularly.</p> <p>“I understand this will be difficult news for some of our customers and Bankwest is introducing a range of support measures to help our customers who are regular branch users carefully through this transition,” he said.</p> <p>“It’s critical we prioritise investment for the majority of our customers who expect leading digital and broker banking services, and rarely use branches, but we have a clear focus on the needs of our regular branch users at this time.”</p> <p>The Finance Sector Union of Australia on Thursday (7 March) branded the decision an outrage on its social media pages.</p> <p>“(In closing) its entire branch network, it is completely abandoning staff and customers in WA,” the statement declared.</p> <p>Union President Wendy Streets pointed out that the bank made in excess of $10 billion annually and accused the bank of letting down regional and remote customers.</p> <p>“Once you get out of cities, connectivity is a real issue, so people can often not even, even if they've got the equipment and they know how to do (online banking), which in lots of cases they don’t, the actual connectivity is an issue,” Ms Streets told media.</p> <p>“So, you know, we’ve heard stories through the banking inquiry into the closure of regional and remote branches of people having to do their banking at midnight and 1am.”&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/cba-to-shut-down-all-60-bankwest-branches?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Finance 2024-03-07T11:59:41-08:00 Finding Perth’s investor hotspots when land sales have soared 92 per cent https://www.apimagazine.com.au/news/article/finding-perth-s-investor-hotspots-when-land-sales-have-soared-92-per-cent?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/finding-perth-s-investor-hotspots-when-land-sales-have-soared-92-per-cent?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Property investors are flocking to Perth's red hot property market, where land sales have taken off and new infrastructure is creating the next selection of suburbs likely to experience high capital growth. <p><span>Investors are heading west as Perth’s relative affordability, strong economic conditions and continued population growth fuel demand for housing across Western Australia’s capital. </span></p> <p><span>The latest figures from UDIA WA’s Urban Development Index show that lot sales increased by a massive 92 per cent over the last 12 months, with 2,440 lots sold for the December 2023 quarter compared with 1,273 in the December 2022 quarter. </span></p> <p><span>The breakdown in buyer profiles shows that 37 per cent of buyers were investors and 29 per cent were first home buyers. </span></p> <p><span>The high level of sales in the new land market has not been experienced since the peak of the boom brought on by Federal and State Government stimulus measures back in 2020.  At that time, the Home Builder and Building Bonus grants, both available to those seeking to purchase new house and land packages in Western Australia, significantly boosted demand. </span></p> <p><span>While Perth remains one of the most affordable cities in Australia, the ongoing <a rel="noopener noreferrer" href="/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide" target="_blank">demand for housing is putting upward pressure on prices</a>, </span>with the average price of new residential lots in Perth now sitting at $266,195.</p> <p>That is a 4 per cent rise in the average price of new land for the December quarter and a 12 per cent increase over the 12 months to end December 2023.</p> <p>High sales volumes are being driven primarily by the growth areas in the North Eastern and North Western corridors.</p> <p>The City of <a rel="noopener noreferrer" href="/research/suburb-profile?id=6113&amp;text=Wanneroo%20WA%206065" target="_blank">Wanneroo</a>, which is home to significant coastal growth areas, including <a rel="noopener noreferrer" href="/research/suburb-profile?id=7276&amp;text=Alkimos%20WA%206038" target="_blank">Alkimos</a>, <a rel="noopener noreferrer" href="/research/suburb-profile?id=160&amp;text=Eglinton%20WA%206034" target="_blank">Eglinton</a> and <a rel="noopener noreferrer" href="/research/suburb-profile?id=8367&amp;text=Yanchep%20WA%206035" target="_blank">Yanchep</a>, recorded the highest number of sales, with 2,756 new lots sold for the December 2023 quarter at an average price of $246,663.</p> <p>This popular coastal strip attracts a range of buyers due to proximity to the beach and other amenity.  Given the average price for new land in the area is $20,000 below the Perth average, the value for money on offer is hard to beat.</p> <p><span>Towards the northern inland hills and wine regions, the City of Swan, home to the long running <a rel="noopener noreferrer" href="/research/suburb-profile?id=11&amp;text=Ellenbrook%20WA%206069" target="_blank">Ellenbrook</a> townsite as well as <a rel="noopener noreferrer" href="/research/suburb-profile?id=719&amp;text=Aveley%20WA%206069" target="_blank">Ave&hellip;</a></span></p> <a href='https://www.apimagazine.com.au/news/article/finding-perth-s-investor-hotspots-when-land-sales-have-soared-92-per-cent?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Tanya Steinbeck) Residential 2024-03-06T11:15:01-08:00 Political heat ramping up as housing crisis worsens https://www.apimagazine.com.au/news/article/political-heat-ramping-up-as-housing-crisis-worsens?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/political-heat-ramping-up-as-housing-crisis-worsens?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Labor, the Liberal Party and The Greens have elevated housing to the very top of the political agenda, detailing new policies, defending older ones and naming new shadow ministers as the political battle over housing policy ramps up. <p>The federal opposition Liberal Party has sensed blood in the water around the housing crisis, with a major Cabinet reshuffle naming Senator Andrew Bragg as the new Shadow Assistant Minister for Home Ownership.</p> <p>The New South Wales politician brings a heavyweight financial background to the portfolio as the existing Chair of Economics References Committee and Deputy Chair of Economics Legislation Committee.</p> <p>Within the Albanese Government Julie Collins is the Minister for Housing and Minister for Homelessness.</p> <p>This week’s <a rel="noopener noreferrer" href="/news/article/another-builder-folds-as-approvals-hit-12-year-low" target="_blank">dire building approvals figures</a>, the lowest for 12 years, added fuel to the political fire.</p> <p>Just 12,850 new dwellings were approved for construction in the first month of 2024, fresh ABS data has shown.</p> <p>January’s 1 per cent fall was in marked contrast to economists’ forecasts of a 4 per cent increase and has heaped the pressure on the government’s beleaguered <a rel="noopener noreferrer" href="/news/article/one-million-new-homes-form-centrepiece-of-labors-first-federal-budget" target="_blank">plan to build 1.2 million homes</a> in the five years from 2024.</p> <p data-t="{&quot;n&quot;:&quot;blueLinks&quot;}">Further highlighting the plight of so many, the national vacancy rate has hit a record low of 0.7 per cent, according to Domain. In Perth and Adelaide, it is as low as 0.3 per cent.</p> <p>Peter Dutton’s Liberal Party is targeting the <a rel="noopener noreferrer" href="/news/article/brutal-rental-market-outpacing-inflation-but-glimmer-of-hope-emerges" target="_blank">rental and housing crisis</a> in a bid to claw back support that slipped after the government revealed changes to the Stage 3 tax cuts that Treasury concluded would leave 84 per cent of taxpayers better off, and comfortably retained the Melbourne seat of Dunkley in a by-election.</p> <p>Labor government support jumped 3.5 to 53.5 per cent, well ahead of the Coalition on 46.5 per cent (down 3.5 per cent) on a two-party preferred, according to the Roy Morgan survey on Federal voting intention released Tuesday (5 March).</p> <p>The latest Liberal Party appointment is another sign of the importance housing will play as an election issue in September 2025.</p> <p>“Andrew’s astute policy mind and advocacy will stand him in good stead for this critical portfolio area for the Coalition under my leadership,” Mr Dutton said.</p> <p>Michael Suk&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/political-heat-ramping-up-as-housing-crisis-worsens?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Building and Construction 2024-03-06T07:23:04-08:00 Tasmania’s 10 best and worst suburbs named, as investors shun Hobart https://www.apimagazine.com.au/news/article/tasmania-s-10-best-and-worst-suburbs-named-as-investors-shun-hobart?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/tasmania-s-10-best-and-worst-suburbs-named-as-investors-shun-hobart?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Investors are steering clear of Hobart and regional Tasmania, but as the list of the ten best and worst real estate suburb performances shows, it's a wildly varied market overall with plenty of capital growth potential. <p>A local expert says political rumblings are turning investors away from Hobart, while property data confirms Tasmania’s market is in limbo.</p> <p>But Real Estate Institute of Tasmania (REIT) figures suggest the Apple Isle isn’t out of the race just yet.</p> <p>Higher interest rates, rising cost of living, decreasing population growth and lower consumer confidence has seen Tasmania’s real estate activity slow throughout 2023.</p> <p>Since peaking in March 2022 values have been flat or falling, down 12.2 per cent by the end of February 2024, according to CoreLogic.</p> <p>REIT’s December quarterly report found sales transactions across the state were down 10.7 per cent on last year and 27.4 per cent on 2021, while the value of all 2023 sales reached $5.3 billion, ranking as the third highest year on record.</p> <p>Southern Tasmania closed 1,033 property transactions over the December quarter with an accumulated value of $721 million, which was a 17-sale increase over the September quarter but 25 sales less than the same time the previous year.</p> <p>Some of the state’s best performers were Tasmania’s most expensive Hobart suburb, <a rel="noopener noreferrer" href="/research/suburb-profile?id=3484&amp;text=Acton%20Park%20TAS%207170" target="_blank">Acton Park</a><span>,</span> with a median price of $1.2 million, followed by <a rel="noopener noreferrer" href="/research/suburb-profile?id=11126&amp;text=Sandy%20Bay%20TAS%207005" target="_blank">Sandy Bay</a> and <a rel="noopener noreferrer" href="/research/suburb-profile?id=13799&amp;text=Mount%20Stuart%20TAS%207000" target="_blank">Mount Stuart</a>, while <a rel="noopener noreferrer" href="/research/suburb-profile?id=13797&amp;text=Gagebrook%20TAS%207030" target="_blank">Gagebrook</a>, <a rel="noopener noreferrer" href="/umbraco/Risdon%20Vale%20TAS%207016" target="_blank">Risdon Vale</a> and <a rel="noopener noreferrer" href="/research/suburb-profile?id=12535&amp;text=New%20Norfolk%20TAS%207140" target="_blank">New Norfolk</a> were the most affordable suburbs priced between $351,000 to $445,000.</p> <blockquote><strong>Investors have pretty much totally deserted the market because they’re continually under fire.</strong></blockquote> <p class="text-center mtn">- <span>John Lennard, Lennard Mclure Real Estate</span></p> <p>For example, a three-bedroom, three-car garage in Sandy Bay on the Hobart city fringe, at 8 Erina Place, is currently listed for offers over $1.1 million, adjacent to premium suburb <a rel="noopener noreferrer" href="/research/suburb-profile?id=4460&amp;text=Battery%20Point%20TAS%207004" target="_blank">Battery Point</a>, a six-minute drive to the CBD and 15-minute walk to Short Beach.</p> <p>John Lennard, Director, Lennard Mclure Real Estate, said premium suburbs are performing well, as are some of the cheaper suburbs in northern Hobart, which correlates with REIT’s report and <a rel="noopener noreferrer" href="/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide" target="_blank">CoreLogic’s Home Value Index (HVI)</a> figures showing the city’s north east suburbs had the hi&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/tasmania-s-10-best-and-worst-suburbs-named-as-investors-shun-hobart?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Ev Foley) Residential 2024-03-05T14:53:50-08:00 Award-winning broker predicts strong property market performance in year ahead https://www.apimagazine.com.au/news/article/award-winning-broker-predicts-strong-property-market-performance-in-year-ahead?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/award-winning-broker-predicts-strong-property-market-performance-in-year-ahead?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Specialist Mortgage Director, Helen Avis, who has just taken out a title as Best Finance Broker 2024, said low supply, easing interest rates and continued buyer demand would ensure a strong property market into 2025. <p>With a multi-generational client base that now includes the children of her original property buyers, Specialist Mortgage Director, Helen Avis, has taken out the title as Western Australia<span>’</span>s Best Finance Broker 2024 at The Adviser Better Business Awards.</p> <p>At the event held at the Hyatt Regency Perth, Specialist Mortgage was also named as Best Customer Service (Office) Finalist, while Ms Avis was additionally a finalist in the Best Residential Broker and Broker of the Year categories.</p> <p>The state-based awards, sponsored by principal partner NAB, celebrated talent from the mortgage and finance industry, with hundreds of colleagues and peers in attendance at the black tie ceremony.</p> <p>Ms Avis said her experience in the industry was borne home to her by a recent client trend she had noticed.</p> <p>“I have been doing this for so long I am now doing loans for my clients’ kids as they move into the first home owner market.</p> <p>“Providing service to existing clients and the subsequent client referrals keeps me busy and it’s a cumulative effect that keeps delivering added momentum to our business.”</p> <p>“I am still doing a lot of expatriate lending, but also as our clients move back to Australia I’m now sourcing and processing a lot of loans for our clients in Australia, whether for a home or an investment.”</p> <p>Ms Avis expected the rest of 2024 and into 2025 to be buoyant times for the national property market.</p> <p>“I think most clients are <a rel="noopener noreferrer" href="/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike" target="_blank">expecting a rate cut</a> later this year, so there is already anticipation of this.</p> <p>“Buyer demand is still strong and there is a shortage of stock, so we expect real estate markets to remain upbeat.”</p> <p>Ms Avis said she would encourage clients to refinance if their banks wouldn’t consider a better deal on their home loans.</p> <p>“Refinancing is mixed at the moment, with some banks willing to offer pricing to keep clients, but others won’t, so for those clients we will look at refinancing.”</p> <p>SMATS Group, of which <a rel="noopener noreferrer" href="/experts/specialist-mortgage" target="_blank">Specialist Mortgage</a> is a part, are international market &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/award-winning-broker-predicts-strong-property-market-performance-in-year-ahead?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (API Contributor) Sponsored Content 2024-03-05T08:05:17-08:00 Inflation tamed but housing costs still hurting renters and investors alike https://www.apimagazine.com.au/news/article/inflation-tamed-but-housing-costs-still-hurting-renters-and-investors-alike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/inflation-tamed-but-housing-costs-still-hurting-renters-and-investors-alike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles More than 11 per cent of investor sales across Sydney were made at a loss, putting a different spin on the well-worn characterisation of landlords as scheming and greedy. <p>The rate rises of last year appear to have worked, at least when it comes to inflation.</p> <p>Inflation data released late last month showed either stable or weakening prices for most of the sectors tracked by the Australian Bureau of Statistics in making its calculations.</p> <p>Predictably, the cost of housing was among the outlying sectors, rising through January. This long-term trend is entrenched and affordability won’t improve without more homes in the market.</p> <p>Even with the growth in wages, as reported by the ABS for the December quarter, it’s becoming more and more difficult for people looking to buy a home to do so. That’s because the growth in dwelling prices is far outpacing wage growth, and the gap is widening.</p> <p>This means more people renting for longer, whether they want to be renters or not. But it’s not necessarily good news for investors.</p> <p>CoreLogic figures show that for the September quarter, more than 11 per cent of investor sales across Sydney were made at a loss. Apartment owners in <a rel="noopener noreferrer" href="/news/article/top-10-suburbs-named-where-house-prices-are-soaring-above-units" target="_blank">areas where unit values have been steady</a> have been particularly affected.</p> <p>It puts a different spin on the well-worn and wholly unfair characterisation of all landlords as scheming and greedy.</p> <p>Mum and dad investors forced to sell because they couldn’t manage the rapidly rising mortgage repayments, only to then have to settle for a loss, simply don’t generate the same level of interest or clicks that tenant hardship stories do, even though neither side wins.</p> <p>Politicians who punch down on landlords for political purposes are making the problem worse for all stakeholders, particularly tenants.</p> <p>We’ve recently seen the old <a rel="noopener noreferrer" href="/news/article/negative-gearing-the-myths-facts-and-what-investors-need-to-know" target="_blank">negative gearing debate</a> rolled out once again. Some politicians suggest its removal is the silver bullet to solve the rental crisis. Making investing in residential rental property less attractive than other investment opportunities will make things worse. </p> <p>The exorbitant stamp duty those investors have paid, and the other fees and taxes they’re require to keep&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/inflation-tamed-but-housing-costs-still-hurting-renters-and-investors-alike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Tim McKibbin) Investment 2024-03-04T15:25:47-08:00 Another builder folds as approvals hit 12-year low https://www.apimagazine.com.au/news/article/another-builder-folds-as-approvals-hit-12-year-low?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/another-builder-folds-as-approvals-hit-12-year-low?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The building industry appears set for a daunting 2024, with the collapse of the Rork Group coming as dwelling approvals plummeted to lows not seen for more than a decade. <p>A national builder with 63 projects throughout New South Wales, the ACT, Victoria and Queensland has lapsed into administration.</p> <p>The demise of the Rork Group, which comprises Rork Projects (Holdings), Rork Projects (QLD) and Rork Projects, comes as total dwelling approvals fell to the lowest level in 12 years.</p> <p>The building approval figures released by the Australian Bureau of Statistics on Monday (4 March) underlined the difficult circumstances facing builders around the country.</p> <p>Total dwellings approved fell 1.0 per cent, to 12,850.</p> <p>Private sector houses fell 9.9 per cent, to 7,461, while private sector dwellings excluding houses rose 19.5 per cent, to 5,238.</p> <p>All major states contributed to the latest decline, with the largest falls in New South Wales (-13.1 per cent) and Victoria (-16.7 per cent).</p> <p>In a statement on the Rork Projects website, Director, Brian O'Rourke, attributed the company’s collapse to a “tsunami” of economic factors.</p> <p>“It is with a heavy heart I announce that after 26 years of operations, Rork Projects was forced to commence voluntary administration.</p> <p>“This was the final step in a long journey to find a solution for our staff, clients and subcontractors, and we acknowledge the devastating impact this outcome has on them.</p> <p>“The tsunami of impossible economic conditions is smashing the construction industry with <a rel="noopener noreferrer" href="/news/article/construction-companies-continue-to-collapse-by-the-thousands" target="_blank">upward of 2,000 construction businesses collapsing in 2023</a>.”</p> <p>Mr O’Rourke’s statement suggested his company’s fate would likely befall others.</p> <p>“Builders are in crisis because of high interest rates, labour shortages and material supply constraints following the pandemic.</p> <p>“The construction market is facing one of the worst storms since the mid-1970 crisis.</p> <p>“While devastating for us, it is also damaging to the Australian economy and community.”</p> <p>The collapse of Rork comes on the heels of Melbourne-based construction company Apex Homes Australia and New South Wales and Canberra builder Cubitt’s Granny Flats and Home Extensions <a rel="noopener noreferrer" href="/news/article/prominent-builders-collapse-owing-millions" target="_blank">enteri&hellip;</a></p> <a href='https://www.apimagazine.com.au/news/article/another-builder-folds-as-approvals-hit-12-year-low?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Building and Construction 2024-03-04T12:22:06-08:00 Want to be among Australia's wealthiest 1 per cent? There's good news and bad news https://www.apimagazine.com.au/news/article/want-to-be-among-australias-wealthiest-1-per-cent-theres-good-news-and-bad-news?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/want-to-be-among-australias-wealthiest-1-per-cent-theres-good-news-and-bad-news?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The amount needed to land among Australia's richest one per cent has fallen but it still takes about 75 years saving the entirety of the average salary to get there. <p>If you want to be among the top 1 percenters in Australia in terms of wealth, there’s good news and bad news.</p> <p>The good news is it has become easier to get into the top 1 per cent wealthy club in Australia.</p> <p>The bad news is you’ll still need to rustle up $7.17 million.</p> <p>But that’s still a couple of decades of the average salary less than it was two affluent years ago. In 2022, a bank balance of $8.45 million was needed to be in such exalted mansion, yacht and caviar company.</p> <p>Australia now ranks seventh in the world for the money required to be in the top 1 per cent of wealthiest people, falling from its ranking of third last year.</p> <p>Luxury property continues to deliver sizeable gains to those fortunate enough to own one.</p> <p>When it comes to luxury residential property, sellers – who are hard to find in this market - are getting slightly more bang for their buck in Sydney and the Gold Coast.</p> <p>Knight Frank’s <em>The Wealth Report 2024</em> found US$1 million (A$1,536,000) bought a little less space in 2023 than 2022 due to price growth.</p> <p>In Sydney, US$1 million bought 43sq m of luxury space in 2023, slightly less than the 44sq m in 2022. Meanwhile, on the Gold Coast you’ll get 112sq m for $US1 million, compared to 117sq m in 2022.</p> <p>Despite this, these Australian cities are still much more affordable for luxury property than other markets around the world, such as Monaco, where the elite will only get 16sq m for US$1 million and Aspen, Colorado, where US$1 million will buy just 20sq m.</p> <p><a rel="noopener noreferrer" href="/news/article/from-perth-to-sydney-luxury-property-market-thriving" target="_blank">Luxury residential property</a> rose by 3.1 per cent across 100 selected locations around the world.</p> <p>Australia punches above its population on the world stage when it comes to being a property investment target for the ultra-wealthy.</p> <p>According to Knight Frank’s Attitudes Survey, Australia ranks fourth as a location to purchase a new home, with 5.6 per cent saying the most likely location they would buy is in Australia if they were planning to purchase a new home. Australia sits behind the UK (17.7 p&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/want-to-be-among-australias-wealthiest-1-per-cent-theres-good-news-and-bad-news?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Residential 2024-03-01T12:23:10-08:00 Property prices shooting up again as Perth soars, Melbourne reverses slide https://www.apimagazine.com.au/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The pace of national property price rises has taken off again, with the three red hot capitals - Perth, Adelaide, Brisbane - leading the charge and only one state capital regressing. <p>Perth’s property market is going gangbusters, Melbourne has emerged from a three month slump, and Hobart stands alone as the country’s only capital going backwards.</p> <p>These were among the revelations in the latest data releases from the major property market analysts.</p> <p>Nationally, property prices in the capitals and regions alike were 0.6 per cent higher in February, up from 0.4 per cent the previous month.</p> <p>CoreLogic’s Home Value Index for February has Perth on track to record growth in 2024 of more than 20 per cent at its current rate of knots.</p> <p>Dwelling values shot up 1.8 per cent, ahead of the other reliably strong deliverers of capital growth, Adelaide (1.1 per cent) and Brisbane (0.9 per cent).</p> <p>Sydney’s median property price of $1,128,155 belittles the rest of the country but speculation that the Harbour City’s lack of affordability would result in an inevitable price decline seems premature.</p> <p>Steady growth of 0.5 per cent eclipsed its southern neighbour, but Melbourne’s 0.1 per cent monthly increase put an end to three months of continuous price falls. The Victorian capital has a median value of $778,941, fourth among the capitals behind Sydney, Canberra and Brisbane.</p> <p>Adelaide’s continued strong performance, up 1.1 per cent for February, has seen its median dwelling value claw its way to within $50,000 of Melbourne’s.</p> <p>Buoyed by a lack of supply and abundance of interstate investors, Perth’s real estate juggernaut is showing no signs of slowing.</p> <p>Speaking to <em>API Magazine</em>, Julie Kelley, Global Sales and Marketing Manager for aussieproperty.com, said every indicator pointed towards continued growth and a possible acceleration as the year unfolded.</p> <p>“Perth is not showing any signs of a slowdown, with population growth, housing supply shortages and high rents driving the capital growth.</p> <p>“The east coast investor contingent is also hungrily purchasing property at rates we haven’t seen since the mining boom of the 2000s.</p> <p>“These savvy <a rel="noopener noreferrer" href="/news/article/have-prospective-investors-missed-the-perth-property-market-boat" target="_blank">buyers recognise Perth is ext&hellip;</a></p> <a href='https://www.apimagazine.com.au/news/article/property-prices-shooting-up-again-as-perth-soars-melbourne-reverses-slide?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-03-01T00:00:01-08:00 Prominent builders collapse owing millions https://www.apimagazine.com.au/news/article/prominent-builders-collapse-owing-millions?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/prominent-builders-collapse-owing-millions?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Melbourne-based construction company Apex Homes Australia and New South Wales and Canberra builder Cubitt’s Granny Flats and Home Extensions have collapsed but a heavily indebted major construction company in Perth is trying to resurrect its operation. <p>Two prominent building companies in Victoria and New South Wales have hit the wall, while in Western Australia attempts are underway to resuscitate a construction company that owes more than $10 million.</p> <p>Another company, Brisbane-based DC Living, went into administration last month but new reports reveal the company owes $4 million, half of which is to staff.</p> <p>Melbourne-based construction company Apex Homes Australia has collapsed with more than a dozen projects not yet completed and debts of almost $200,000.</p> <p>Well known builder of high quality granny flats, Cubitt’s Granny Flats and Home Extensions, has also gone into voluntary administration after three decades of building homes.</p> <p>Cubitt’s, which has offices and display centres in Sydney, <a rel="noopener noreferrer" href="/research/suburb-profile?id=3209&amp;text=Newcastle%20NSW%202300" target="_blank">Newcastle</a>, <a rel="noopener noreferrer" href="/research/suburb-profile?id=6176&amp;text=Wollongong%20NSW%202500" target="_blank">Wollongong</a> and Canberra, blamed the skyrocketing costs of building homes, high taxes, lending conditions and supply line issues.</p> <p>The business is now up for sale, with insolvency firm RSM Australia Partners appointed as administrators. </p> <p>RSM released a statement saying it has identified about 200 creditors owed $3.8 million.</p> <p>A company statement on its website said an emotional meeting was held to advise staff, many with 25 years experience at the company, that 30 years of home building was over due to <a rel="noopener noreferrer" href="/news/article/alarming-damning-heartbreaking-building-associations-lament-industry-plight" target="_blank">an array of industry challenges</a>.</p> <p>“Due to bank lending conditions, supply prices, taxation changes, insurance prices, Covid recovery and lengthy weather events, Cubitt’s company has suffered more than it can shoulder,” the statement read.</p> <p>“Cubitt<span>’</span>s made the decision in 2021 to honour fixed price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets.</p> <p>“Unable to bridge the gap entirely, the directors have today appointed Richard Stone and Brett Lord from RSM Australia Partners as Administrators with the objective of finding a buyer for this truly spec&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/prominent-builders-collapse-owing-millions?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Building and Construction 2024-02-29T12:53:25-08:00 Inflation's steady pace quashing prospects of a rate hike https://www.apimagazine.com.au/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Wages pressure remains an unknown variable but most indicators, including stabilised inflation, suggest the cycle of interest rate rises has come to an end. <p>The latest inflation figures for January show that inflation has stabilised, further reinforcing expectations that the extended period of interest rate hikes has come to an end.</p> <p>Australian Bureau of Statistics data released Wednesday (28 February) will come as some relief to borrowers, with the inflation rate coming in at 3.4 per cent for the 12 months to January 2024.</p> <p>This was the same as the increase for the 12 months to December 2023, but down from the November 2023 figure of 4.3 per cent.</p> <p>Renters, for whom their <a rel="noopener noreferrer" href="/news/article/median-weekly-rents-break-records-crashing-through-600-barrier" target="_blank">accommodation is generally consuming around 30 per cent of their income</a>, could be excused for taking little solace from the over inflation reading.</p> <p>Rent prices rose 7.4 per cent in the 12 months to January, reflecting a tight rental market and low vacancy rates across the country. </p> <p>Housing rose 4.6 per cent, down from 5.2 per cent in December. New dwelling prices rose 4.8 per cent over the year with builders passing through higher costs for labour and materials. </p> <p>Michelle Marquardt, ABS Head of Prices Statistics, annual inflation when excluding volatile items has been declining since the peak of 7.2 per cent in December 2022.</p> <p>The cost of living crisis is still sapping the spending and investment power of consumers.</p> <p>Annual electricity prices rose 0.8 per cent in the 12 months to January 2024. The introduction of the Energy Bill Relief Fund rebates for eligible households from July 2023 has mostly offset electricity price rises from annual price reviews in July due to increases in wholesale prices. </p> <p>“Excluding the rebates, electricity prices would have increased 15.3 per cent in the 12 months to January 2024,” Ms Marquardt said. </p> <p>“Annual inflation for food and non-alcoholic beverages increased to 4.4 per cent in January, up from 4.0 per cent in December.</p> <p>“Annual inflation remains elevated for food, apart from fresh food categories.</p> <p>“Meat and seafood and fruit and vegetables, for example, saw lower or negative annual inflation,” Ms Marquardt sai&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/inflations-steady-pace-quashing-prospects-of-a-rate-hike?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Finance 2024-02-28T12:57:13-08:00 How is bursting Brisbane's population shaping the property market? https://www.apimagazine.com.au/news/article/how-is-bursting-brisbanes-population-shaping-the-property-market?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/how-is-bursting-brisbanes-population-shaping-the-property-market?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Brisbane’s property market continues to be among the fastest growing in the country and with the population swelling and the city bursting at the seams, there's little sign of that real estate market cooling. <p>Brisbane’s Olympic-city status is catching global attention and attracting migrants looking for jobs, while domestic and interstate buyers flock towards the city’s affordability.</p> <p>This rampant population influx is squeezing stock levels and vacancy rates, and driving property prices higher.</p> <p>Brisbane’s population growth drove another 1 per cent <a rel="noopener noreferrer" href="/news/article/brisbane-property-makes-strong-start-to-2024" target="_blank">rise in property prices in January</a> and 14.8 per cent in the past year.</p> <p>Vacancy rates in greater Brisbane suburbs too dropped below 1 per cent in January, down from a peak of 4.1 per cent eight years ago with some suburbs sinking close to zero.</p> <p>Brisbane City Council projects the city’s population to grow from about 1.26 million people in 2021 to 1.55 million by 2041, and Queensland’s 2.6 per cent spike in population growth in the year to June 2023 follows an ongoing trend.</p> <p>“Over the three years to June 2023, Queensland’s population grew by nearly 300,000, the largest swell in the country, and of those, 120,000 people came from interstate – making us the number one destination for migration in Australia,” <a rel="noopener noreferrer" href="/news/article/reiq-boss-takes-centre-stage-in-tackling-queensland-real-estate-issues" target="_blank">Antonia Mercorella</a>, CEO, Real Estate Institute of Queensland, told <em>API Magazine</em>.</p> <p>“While these are indeed exceptional numbers on the demand side, our grossly insufficient levels of housing supply have certainly not emerged overnight.”</p> <p>Recent population growth levels in part explains why the number of people seeking shelter in Brisbane outnumbers dwelling availability.</p> <p>Property Council of Australia’s Queensland Executive Director, Jess Caire, confirmed to <em>API</em> <em>Magazine</em> that over recent decades Queensland’s population growth has outpaced delivery of infrastructure and increased demand for new land and housing in South East Queensland.</p> <p>“Housing availability is now at crisis point, with demand only set to increase as people from interstate and overseas move to the region, and Queensland gears up for the Brisbane 2032 Olympic and Paralympic Games,” Ms Caire said.</p> <h2><strong>Population growth outstripping supply</strong></h2> <p>Taking in 138,470 people&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/how-is-bursting-brisbanes-population-shaping-the-property-market?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Ev Foley) Residential 2024-02-28T11:03:00-08:00 Regional resurgence as property prices outpace capital cities https://www.apimagazine.com.au/news/article/regional-resurgence-as-property-prices-outpace-capital-cities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/regional-resurgence-as-property-prices-outpace-capital-cities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Led by Western Australia and Queensland, regional property prices have in the past quarter completed a rare feat in outperforming capital city real estate markets. <p>Regional property prices are now outpacing the capital cities, in a trend rarely seen outside the Covid years of urban escapism.</p> <p>The reversal of fortunes between the cities and regions has been driven largely by double-digit annual growth in the migration magnets of Western Australia and Queensland.</p> <p>Dwelling values in regional Australia recorded a quarterly increase of 1.2 per cent in the three months to January 2024, <a rel="noopener noreferrer" href="/news/article/perth-still-leading-the-pack-as-national-property-prices-march-on" target="_blank">compared to the capital cities’</a> 1.0 per cent increase over the same period.</p> <p>Capital growth remains varied across Australia<span>’</span>s 50 largest significant urban areas (SUAs), however, many of the standout performers are in WA and Queensland.</p> <p>WA’s coastal towns of <a rel="noopener noreferrer" href="/research/suburb-profile?id=2232&amp;text=Albany%20WA%206330" target="_blank">Albany</a> and <a rel="noopener noreferrer" href="/research/suburb-profile?id=6980&amp;text=Bunbury%20WA%206230" target="_blank">Bunbury</a> recorded the highest quarterly rises, with value growth of 7.7 per cent and 6.2 per cent respectively, ahead of Northern NSW<span>’</span>s <a rel="noopener noreferrer" href="/research/suburb-profile?id=10622&amp;text=Lismore%20NSW%202480" target="_blank">Lismore</a> (5.5 per cent), and <a rel="noopener noreferrer" href="/research/suburb-profile?id=8942&amp;text=Townsville%20City%20QLD%204810" target="_blank">Townsville</a> (4.7 per cent) in Queensland<span>’</span>s North.</p> <p>Only six SUAs recorded an annual increase of 10 per cent or more including WA<span>’s</span> <a rel="noopener noreferrer" href="/research/suburb-profile?id=6980&amp;text=Bunbury%20WA%206230" target="_blank">Bunbury</a> (15.8 per cent), and Central Queensland<span>’</span>s <a rel="noopener noreferrer" href="/research/suburb-profile?id=4862&amp;text=Bundaberg%20Central%20QLD%204670" target="_blank">Bundaberg</a> (12.0 per cent) and <a rel="noopener noreferrer" href="/research/suburb-profile?id=10174&amp;text=Rockhampton%20City%20QLD%204700" target="_blank">Rockhampton</a> (12.0 per cent).</p> <p>Properties are selling faster, with five regions falling below the 20-day median time-on-market benchmark.</p> <p>Bundaberg, Queensland (15 days) recorded the shortest median time on market, followed by, 400 kilometres further south, <a rel="noopener noreferrer" href="/research/suburb-profile?id=2953&amp;text=Toowoomba%20City%20QLD%204350" target="_blank">Toowoomba</a> (17 days), with WA’s Bunbury, (18 days) and <a rel="noopener noreferrer" href="/research/suburb-profile?id=5063&amp;text=Busselton%20WA%206280" target="_blank">Busselton</a> (19 days), and <a rel="noopener noreferrer" href="/research/suburb-profile?id=4211&amp;text=Cairns%20City%20QLD%204870" target="_blank">Cairns</a> also at 19 days.</p> <p>At the other end of the scale, <a rel="noopener noreferrer" href="/research/suburb-profile?id=1124&amp;text=Batemans%20Bay%20NSW%202536" target="_blank">Batemans Bay</a>, NSW (75 days) continued to record the longest median selling time, while sellers in <a rel="noopener noreferrer" href="/research/suburb-profile?id=15472&amp;text=Bowral%20NSW%202576" target="_blank">Bowral</a>-<a rel="noopener noreferrer" href="/research/suburb-profile?id=6161&amp;text=Mittagong%20NSW%202575" target="_blank">Mittagong</a>, NSW (-6.7 per cent) offered the largest discounts in order to secure a sale.</p> <p>Almost half of all regional sales in the most recent month measured, November, were for properties priced between $400,000 and $600,000.</p> <p>Sales volumes are well down on the peak for the same month in previous years which occurred in 2018.</p> <h2><strong>Regional hotspots share common traits</strong></h2> <p>Regional cities and towns attracting population growth had correspo&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/regional-resurgence-as-property-prices-outpace-capital-cities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Residential 2024-02-27T16:05:00-08:00 Surge in granny flats as borrowers seek mortgage-busting income https://www.apimagazine.com.au/news/article/surge-in-granny-flats-as-borrowers-seek-mortgage-busting-income?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/surge-in-granny-flats-as-borrowers-seek-mortgage-busting-income?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Granny flats unquestionably contribute to much needed urban infill that helps address the housing crisis but for most home owners these dwellings are a case of 'show me the money'. <p>In recent years, the humble granny flat has undergone a transformation from a mere accessory to a principal feature with lucrative income-generating potential.</p> <p>Amid escalating interest rates and the daunting challenge of meeting mortgage payments, home owners are increasingly exploring the idea of investing in granny flats as a strategic addition or upgrade to their properties.</p> <p>Notably, this avenue presents a viable alternative for those who lack the capital for standalone secondary properties or townhouses yet, possess larger properties ripe for expansion.</p> <p>Over 1.6 million mortgage holders in Australia, or 31 per cent of the total, faced potential mortgage stress in the three-month period leading up to January<span>, new findings from independent research firm Roy Morgan revealed.</span></p> <p>A granny flat, also known as a secondary dwelling, can be either attached to, or detached from the principal dwelling.</p> <p>Beyond simply adding value to the property, these secondary units offer the enticing prospect of generating additional income for home owners. Moreover, the depreciation deductions available for granny flats serve as an attractive financial incentive for investors.</p> <p>In an effort to boost urban density, <a rel="noopener noreferrer" href="/news/article/scale-of-urban-sprawl-in-australia-hurting-more-than-just-the-environment" target="_blank">reduce urban sprawl</a>, and address housing shortages, <a rel="noopener noreferrer" href="/news/article/granny-flat-rules-relaxed-to-tackle-housing-crisis" target="_blank">Western Australia has loosened regulations</a> regarding the construction of granny flats in suburban backyards.</p> <p>In New South Wales (NSW), the Affordable Housing State Environmental Planning Policy (SEPP) streamlined the approval process for granny flats, allowing them to be approved as complying developments. This means home owners can obtain a Complying Development Certificate (CDC) from a certifier or a reputable builder, saving both time and money.</p> <h2><strong>The granny flat rule book</strong></h2> <p>While the prospect of a granny flat may be appealing, it’s imperative to navigate the regulatory landscape of each state and territory and to ensure compliance.</p> <p>In accordance with the National Construction Code (NCC), granny flats must include essent&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/surge-in-granny-flats-as-borrowers-seek-mortgage-busting-income?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Building and Construction 2024-02-27T11:26:46-08:00 Buying property interstate need not be a borderline decision https://www.apimagazine.com.au/news/article/buying-property-interstate-need-not-be-a-borderline-decision?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/buying-property-interstate-need-not-be-a-borderline-decision?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Buying property interstate has its challenges but the rewards can be lucrative if certain steps are understood and the appropriate research conducted. <p>Investors on the east coast are flocking to Western Australia after the 2023 capital growth results showed that WA suburbs filled the top 10, with many suburbs’ average property values increasing by up to (and some more than) 30 per cent in 12 months.</p> <p><a rel="noopener noreferrer" href="/news/article/have-prospective-investors-missed-the-perth-property-market-boat" target="_blank">Perth and the surrounding suburbs</a> are going through a period of tight supply and strong demand that has resulted in prices sky rocketing.</p> <p>Investors are also cashing in on the more affordable entry point to buy an investment property and some first-time investors have finally been able to get a foothold on the property ladder.</p> <h3><strong>Top reasons to buy property interstate</strong></h3> <h2><strong>Portfolio diversification</strong></h2> <p>It is important to diversify your investments so that you can mitigate your risks across markets, should one market not perform as expected. It is important that you aren’t relying on the performance of one market to determine the success of your portfolio as a whole.</p> <h2><strong>Investing in the right real estate market</strong></h2> <p>You might think you know the area you live in well, but do you really? You might know the street names, amenities and local schools but do you really know your locality from an investors perspective?</p> <p>An investor will look at the 10-year average capital growth of the market, the one- and two-year growth figures, rental vacancy rates, hazard risks and zoning of an area, government spending in infrastructure, and more.</p> <p>If you open your mind to investing interstate, then the whole country is your target market and you can aim at investing in the right market for your needs.</p> <p>Your needs will be determined by your property investment strategy, which may lead you to investing interstate.</p> <p>But what is most important, is that you invest in the right market for you.</p> <p>One of the most important tips is to ensure you only buy <a rel="noopener noreferrer" href="/news/article/hotspot-experts-top-10-traits-of-a-successful-2024-property-investor" target="_blank">properties that align with your strategy</a>, as well as only buying property in investment-grade locations. Don’t be fooled by the cheaper price point, or better rental yields.</p> <p>If the property isn’t in an investm&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/buying-property-interstate-need-not-be-a-borderline-decision?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Lloyd Edge) Investment 2024-02-26T14:38:00-08:00 Barrage of interest rate cuts may be just around the corner https://www.apimagazine.com.au/news/article/barrage-of-interest-rate-cuts-may-be-just-around-the-corner?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/barrage-of-interest-rate-cuts-may-be-just-around-the-corner?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The economy is at a turning point, with inflation seemingly heading back to its target range and an economic soft landing unfolding, so what does this mean for interest rates in 2024 and beyond? <p>Given the resilience in local and global economic growth over recent months - along with continued steady declines in inflation - it appears increasingly likely that a soft economic landing is probable this year.</p> <p>In Australia, the December quarter consumer price index had dropped to 0.6 per cent on a quarterly basis, and to 4.1 per cent on an annual basis. The domestic rate of inflation has halved over the past 12 months. </p> <p>Moreover, the 4.1 per cent recent annual result was much less than the 4.5 per cent forecast by the Reserve Bank for calendar 2023.</p> <p>They've been <a rel="noopener noreferrer" href="/news/article/first-rba-decision-of-2024-sees-interest-rates-kept-on-hold" target="_blank">kept on hold in the first RBA decision of 2024</a> but where to next for interest rates?</p> <h2><strong>String of rate cuts possible</strong></h2> <p>Well – at this stage – a increase in the cash rate is very doubtful. Falls in the cash rate are more likely.</p> <p>The financial markets have been expecting them to fall from late in the year and the betting is now strongly in favour for the first fall to be between August and December this year. If things economic go further south than anticipated the first cut could be a soon as May.</p> <p>My modelling suggests that six separate 0.25 per cent falls in the cash rate are possible between mid-to-late 2024 and by the end of calendar year 2025.</p> <p>Right now, the first 0.25 per cent cut is likely to be in August 2024, a month after the Australian Bureau of Statistics quarterly consumer price index result. Further cuts are likely to follow the same pattern after the official quarterly CPI result.</p> <p>If this eventuates then the Australian cash rate is likely to fall from its current 4.35 per cent to 2.85 per cent by late 2025, a fall of 1.5 per cent.</p> <p>We all know that most of the hikes in official interest rates are passed onto borrowers. At present the average pass-on rate across all financial institutions has been 85 per cent. History shows that only around 80 per cent of rate cuts are transferred to deposit holders. </p> <p>Assuming that history repeats, then a 1.5 per cent fall in the cash rate should see mort&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/barrage-of-interest-rate-cuts-may-be-just-around-the-corner?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Finance 2024-02-25T00:22:11-08:00 Large blocks, big dreams, ample cashflow forge Dragan’s property portfolio https://www.apimagazine.com.au/news/article/large-blocks-big-dreams-ample-cashflow-forge-dragan-s-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/large-blocks-big-dreams-ample-cashflow-forge-dragan-s-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles From buying his first property at 21 but making plenty of subsequent real estate investment mistakes, Dragan Dimovski has built an impressive multi-state property portfolio with a surprising emphasis on a particular property type. <p>Investor Dragan Dimovski bought his first unit in Sydney aged 21, and on reflection it’s the mistakes he made along the way that have refined his choices now, developing an instinct for property that offers him the best short-term gains.</p> <p>The son of immigrant parents, Dragan Dimovski grew up with few material possessions, but at 21 his strong work ethic led him to open his first business in Sydney, a photography studio, where he realised fairly quickly it wasn’t going to bring him the wealth or lifestyle he really desired.</p> <p>The owner of the building he rented for his business, however, had nice cars and clothes that prompted him to ask him how anyone managed to afford these things. The response he got changed the course of Dragan’s life, setting him on a path to growing his personal wealth.</p> <p>He quickly booked himself into a seminar to learn about property investment, where the presenter’s first lesson was to follow in his footsteps and buy one- and two-bedroom apartments in serious need of renovation.</p> <p>“So, I thought I’d do the same, but obviously, not really understanding what I was actually buying I bought a two-bedroom, one bathroom apartment in <a rel="noopener noreferrer" href="/research/suburb-profile?id=3448&amp;text=Pymble%20NSW%202073" target="_blank">Pymble</a>, in northern Sydney, where that type of property then, was worth around $500,000,” Dragan explained to <em>API Magazine.</em></p> <p>“I could buy the unit for $440,000 but after $20,000 in renovations, $20,000 on stamp duty, buying and selling fees, solicitors etc., I was just breaking even, so, no, the due diligence wasn’t there.</p> <p>“I was overexcited and gung-ho in my youth, so my approach was ‘just buy something’.”</p> <p>After realising he’d spent too much on the renovations, he held on to the property and purchased another two-bedroom, one bathroom unit, this time in the south western Sydney suburb of <a rel="noopener noreferrer" href="/research/suburb-profile?id=3671&amp;text=Liverpool%20NSW%202170" target="_blank">Liverpool</a>.</p> <p>“I should have held on to the Pymble unit for a few years and then sold, because I would’ve flipped it right away, but I decided to hold on to it for longer and buy in Liverpool because at the time there was a lot of talk a&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/large-blocks-big-dreams-ample-cashflow-forge-dragan-s-property-portfolio?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Ev Foley) Investor In Focus 2024-02-23T08:03:23-08:00 Renovation mistakes that make property professionals spill their tea https://www.apimagazine.com.au/news/article/renovation-mistakes-that-make-property-professionals-spill-their-tea?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/renovation-mistakes-that-make-property-professionals-spill-their-tea?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Renovating an investment property is laden with potential pitfalls, but a property valuer who has seen all the mistakes spells out the tactics that will generate the best returns for investors. <p>If you want me to spill my tea as a property valuer, make me watch what I see time and time again - investors overcapitalising on their investment property renovations.</p> <p>And I can’t hold my tea down as long as investors are not starting at the end and working backwards.</p> <p>Let me explain.</p> <p>I want you to think about your property as a piggy bank. Your property (depending on where it’s located) has a finite size and a limit as to how much money it can hold (aka market value).</p> <p>Just because you spend a lot of money on a renovation doesn’t mean it’ll add a lot of money to the market value.</p> <p>It’s like trying to add money to an already full piggy bank. Try and work out what the property’s end value will be once the renovations are complete (starting at the end) and then work out the <a rel="noopener noreferrer" href="/news/article/five-ways-to-mitigate-rising-renovation-costs" target="_blank">most cost-effective way to achieve the desired renovation</a>.</p> <h2><strong>Property valuation is first step</strong></h2> <p>Start by obtaining a professional valuation of your property. Understanding its current market value provides a baseline for assessing renovation costs. After all, investing significant sums into renovations for a property with limited value or potential may not yield desirable returns.</p> <p>Consider the neighbourhood context as well. Understanding the surrounding properties, their level of improvements and streetscapes. This should set a benchmark for the quality and level of your renovation.</p> <p>Overspending on renovations that exceed the neighbourhood’s market value ceiling may not attract the desired returns. Different areas call for different renovation approaches; what suits an affluent neighbourhood may not be appropriate for a more modest suburb.</p> <h2><strong>Selective renovations</strong></h2> <p>Next up is learning to be a savvy renovator and only renovating what needs to be <a rel="noopener noreferrer" href="/news/article/renovating-to-maximise-a-propertys-resale-value" target="_blank">renovated in order to add the market value</a>.</p> <p>Ripping out a perfectly good kitchen to replace it with a super modern high-end kitchen may not give you the return you are seeking.</p> <p>Think of it this way; spending $50,000 on a new kitchen, only to add $50,000 i&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/renovation-mistakes-that-make-property-professionals-spill-their-tea?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Architecture and Design 2024-02-22T11:45:39-08:00 Soaring rents: The top 20 unit, house markets for investors in 2024 https://www.apimagazine.com.au/news/article/soaring-rents-the-top-20-unit-house-markets-for-investors-in-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/soaring-rents-the-top-20-unit-house-markets-for-investors-in-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Rapidly rising rents have changed the property investment landscape, and the top 20 location lists in Australia, based on house and rent forecasts for 2024, are a crucial resource for property investors aiming to maximise their returns. <p><span>In 2024, the Australian rental market is poised for significant upheaval, characterised by a substantial escalation in rental costs that is set to exert intense pressure on household budgets nationwide. </span></p> <p><span>In this </span><span>comprehensive analysis</span><span> provided exclusively to <em>API Magazine</em> and collated by Suburbtrends, it is</span><span> anticipate</span><span>d that there will be</span><span> an average increase of 11</span><span> per cent</span><span> in house rents across Australian suburbs. </span></p> <p><span>Even more striking is the forecasted surge in unit rents, which are expected to climb by an astonishing 27</span><span> per cent</span><span>. </span></p> <p><span>This unprecedented rise underscores a challenging landscape for renters, particularly in the unit market where affordability has traditionally been a key attraction.</span></p> <p><span>While rent reductions are anticipated in a select few suburban areas, a mere 7</span><span> per cent</span><span> of suburbs are likely to witness a decrease in house rents. </span></p> <p><span>This contrast highlights a relatively stable yet strained market for houses compared to units. The <a rel="noopener noreferrer" href="/news/article/units-challenging-accepted-wisdom-about-houses-being-best-property-investment" target="_blank">unit market, in particular, stands out</a> for its acute rent hikes, driven by a complex interplay of demand and affordability.</span></p> <p><span>Despite the looming affordability crunch, certain suburbs—particularly those in the unit market—present <a rel="noopener noreferrer" href="/news/article/treasure-map-identifying-australias-top-unit-markets" target="_blank">notable opportunities for investment</a>, buoyed by the dual prospects of robust rent growth and maintained affordability. </span></p> <p><span>From the <a rel="noopener noreferrer" href="/experts/suburbtrends" target="_blank">Suburbtrends</a> analysis,</span><span> these trends </span><span>have been dissected </span><span>and </span><span>the</span><span> top-performing suburbs</span><span> identified</span><span>, offer</span><span>ing</span><span> critical insights for navigating this dynamic landscape, highlighting areas with the greatest potential for rental yield and investment return amidst the broader context of market volatility.</span></p> <p><span>These are the top 20 unit investment suburbs based on forecast rent growth, and factoring in </span><span>present affordability and overall investment attractiveness</span><span>.</span></p> <p class="mbn"><strong style="color: #000;">Top 20 - Units</strong></p> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tbody> <tr> <th width="13.333%">State</th> <th width="40%">Suburban area</th> <th width="20%">Median price</th> <th width="13.333%">Yield estimate</th> <th width="13.333%">Investor score</th> </tr> <tr> <td>SA</td> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=12246&amp;text=Goodwood%20SA%205034" target="_blank">Goodwood</a> - <a rel="noopener noreferrer" href="/research/suburb-profile?id=8573&amp;text=Millswood%20SA%205034" target="_blank">Millswood</a></td> <td>$452,000</td> <td>5.2%</td> <td>95</td> </tr> <tr> <td>SA</td> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=3573&amp;text=St%20Peters%20SA%205069" target="_blank">St Peters</a> - <a rel="noopener noreferrer" href="/research/suburb-profile?id=14184&amp;text=Marden%20SA%205070" target="_blank">Marden</a></td> <td>$440,000</td> <td>5.1%</td> <td>94</td> </tr> <tr> <td>WA</td> <td><a rel="noopener noreferrer" href="/research/suburb-profile?id=752&amp;text=Mosman%20Park%20WA%206012" target="_blank">Mosman Park</a> - <a rel="noopener noreferrer" href="/research/suburb-profile?id=6279&amp;text=Peppermint%20Grove%20WA%206011" target="_blank">Peppermint Grove</a></td> <td>$35&hellip;</td></tr></tbody></table> <a href='https://www.apimagazine.com.au/news/article/soaring-rents-the-top-20-unit-house-markets-for-investors-in-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Kent Lardner) Investment 2024-02-21T12:00:13-08:00 Have higher rents covered landlords' higher costs? https://www.apimagazine.com.au/news/article/have-higher-rents-covered-landlords-higher-costs?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/have-higher-rents-covered-landlords-higher-costs?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles As rents rise to sky-high levels there's an assumption that landlords are cashing in on the crisis but with higher interest rates and expenses is that the reality? Our case study offers a strong hint. <p>While soaring rents across our capital cities and regions are well known, less has been said of the heightened costs associated with holding an investment property.</p> <p>Rents have broadly changed by approximately 10 per cent per year since early 2020 for most capital cities. Darwin, Canberra and Hobart have exhibited lower rental growth, however, these markets capture considerably fewer investors.</p> <p>A raft of increased expenses have been imposed upon landlords, including land tax, council rates, water rates, maintenance costs, insurances and property management fees. But the largest cost increase by a hefty magnitude is interest.</p> <p>Over the past two years, investors have experienced a sharp incline in costs and, for many, the negative cash flow associated with holding an investment property has <a rel="noopener noreferrer" href="/news/article/investors-are-selling-up-but-some-do-it-better-than-others" target="_blank">forced them to either sell or consider selling</a>.</p> <p>The burning question is: Have <a rel="noopener noreferrer" href="/news/article/median-weekly-rents-break-records-crashing-through-600-barrier" target="_blank">rental increases</a> covered these additional costs, or are investors feeling the pinch more now than two years ago?</p> <p>Land tax, council rates and water rates all vary from property to property and across the different states and territories.</p> <p>Some states that have experienced a change in land tax thresholds, (such as Victoria with the “Covid Temporary Land Tax”), and many of these costs have moved significantly of late.</p> <p>In addition, as capital values grow and state governments re-evaluate capital values, many investors will find themselves eligible to pay higher land tax. Likewise, as local councils reapply valuations, council rates will increase to reflect the higher unimproved values of properties within their jurisdiction.</p> <p>Many could argue that maintenance costs are relatively consistent, however, legislative changes to minimum rental standards, combined with the introduction to mandated compliance checks, (such as electricity and gas) have increased the average maintenance surcharges for investors.</p> <p>Another increased cost to investors is the <a rel="noopener noreferrer" href="/news/article/three-tips-investors-must-know-before-renting-out-their-property" target="_blank">property management fee</a>. The vast majority of property manag&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/have-higher-rents-covered-landlords-higher-costs?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Cate Bakos) Property Management 2024-02-20T12:03:00-08:00 Top 10 suburbs named where house prices are soaring above units https://www.apimagazine.com.au/news/article/top-10-suburbs-named-where-house-prices-are-soaring-above-units?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/top-10-suburbs-named-where-house-prices-are-soaring-above-units?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The gap between house and unit prices continues to grow as space becomes a rarer commodity but rental markets have seen a completely different trend emerge. <p>The phrase safe as houses has long been an adage to describe the security of investing in houses, but it seems the saying is not necessarily translating as readily to the unit market.</p> <p>The gulf between houses and units when it comes to capital growth is expanding, with Sydney’s property market the most prominent when it comes to houses outperforming smaller building types.</p> <p>According to CoreLogic, Sydney has seen the largest expansion in the house premium since the pandemic, with the gap between house and unit values widening by almost 36 percentage points, catapulting it from sixth to first position on the premium leagues table.</p> <p>Melbourne, Perth, Adelaide and Brisbane have all seen their house premium grow between 15 and 16 percentage points over the same period.</p> <p>Only Darwin has a seen a reversal of this trend, with its house premium actually reduced by 12.2 percentage points.</p> <p>Tim Lawless, Research Director, CoreLogic,  said while houses have historically attracted a price premium over units, and have shown a higher rate of capital gain, several factors have led to the accelerated value growth for detached dwellings over recent years.</p> <p>“The house premium rose sharply through the pandemic upswing as more people sought out space and were more willing and able to live further afield in our cities.</p> <p>“While we saw the premium contract through the early part of the rate hiking cycle as house values fell more than unit values, across the combined capitals the gap between house and unit values has since rebounded to a new record high as house values once again rise at a faster pace than units.”</p> <p>The trend that has played out over the past five years shows no sign of abating.</p> <p>Since the onset of the pandemic to January this year, capital city house values have increased by 33.9 per cent or by $239,000. Unit values over the same period are up 11.2 per cent or $65,235.</p> <p>Over the past 12 months house values are up 11.0 per cent ($93,552) while <a rel="noopener noreferrer" href="/news/article/units-challenging-accepted-wisdom-about-houses-being-best-property-investment" target="_blank">unit values are up</a> a lesser 6.&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/top-10-suburbs-named-where-house-prices-are-soaring-above-units?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-02-20T00:00:01-08:00 Have prospective investors missed the Perth property market boat? https://www.apimagazine.com.au/news/article/have-prospective-investors-missed-the-perth-property-market-boat?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/have-prospective-investors-missed-the-perth-property-market-boat?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles API columnist Terry Ryder says those who follow the herd when identifying a property investment location will probably miss the boat when it comes to building a profitable portfolio. <p>One of the truisms of property investment is that if everyone in the news media is telling you an investment location is hot, you’ve already missed the boat.</p> <p>Unfortunately, one of the characteristics of Australians who invest in real estate is they tend to be herd animals.</p> <p>They dive into property investment when they hear or read in news media that there is a boom happening – and so they want to be part of it.</p> <p>They have serious FOMO – Fear of Missing Out.</p> <p>People who behave this way are the least likely to achieve success with property investment.</p> <p>That probably explains why most (71.5 per cent) of Australian property investors never <a rel="noopener noreferrer" href="/news/article/six-steps-to-building-a-property-portfolio" target="_blank">get beyond owning one investment property</a> and less than 1 per cent create a property portfolio of five or more.</p> <p>Those who do succeed at property investment, don’t follow the herd.</p> <p>They’re usually well ahead of the pack, which will stampede when media reports a boom is happening – which is usually a year or more after the smart investors bought in the target location.</p> <h2><strong>Paying too much for Perth property </strong></h2> <p>This is exactly <a rel="noopener noreferrer" href="/news/article/perth-hotspots-soar-30-per-cent-but-will-the-buying-frenzy-continue-into-2024" target="_blank">what we are seeing in the Perth market</a> at the moment. Investors are falling over themselves to buy in that market and, in my opinion, many are paying far too much for poor real estate.</p> <p>When I hear about houses commonly being sold within a week of going on the market, for prices well above the asking price like we are seeing in Perth, I’m concerned.</p> <p>In Perth at the moment, investors are buying anything they can get their hands on. They are paying more than the property’s value and failing to do basic due diligence like building and pest inspections.</p> <p>Yes, some of these investors will do ok despite their lack of checks and balances but sadly some will end up with dud properties and regrettably expensive problems.</p> <p>It’s a classic case of buy in haste and repent at leisure.</p> <p>I’m not saying, “don’t buy in Perth”.</p> <p>What I am suggesting is that if you want to buy in Perth, or any market in Australia for that matter, do t&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/have-prospective-investors-missed-the-perth-property-market-boat?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Terry Ryder) Investment 2024-02-19T13:22:24-08:00 Housing supply requires policy deadlines, not headlines https://www.apimagazine.com.au/news/article/housing-supply-requires-policy-deadlines-not-headlines?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/housing-supply-requires-policy-deadlines-not-headlines?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles In tackling the housing crisis, government needs to play its part in creating an environment in which private sector developers are willing to take on the risk to deliver the home supply so desperately needed. <p>It’s amazing the difference a festive season can make.</p> <p>Last year, the market was grappling with interest rates rises. Now, after the extent of the cost of living crisis has been laid bare by the faster-than-expected <a rel="noopener noreferrer" href="/news/article/fast-falling-inflation-points-to-interest-rate-relief" target="_blank">decline in inflation</a>, cuts appear to be on the agenda.</p> <p>The Reserve Bank’s new meeting format has delivered a sensible decision first up. <a rel="noopener noreferrer" href="/news/article/first-rba-decision-of-2024-sees-interest-rates-kept-on-hold" target="_blank">Keeping rates on hold</a>, with the potential for strategic rate cuts in coming months, is a logical move at this point. Inflation battles have been won but the war isn’t over yet. </p> <p>As long as the cost of housing is deemed an appropriate contribution to the Reserve Bank’s calculations – a non-discretionary commodity alongside discretionary items – then the potential for inflation to remain above the target range will persist.</p> <p>In hindsight, we can call 2023 the year of the housing supply headline. But what we really need is a housing supply deadline.</p> <p>Until then, prices to buy and rent homes will only increase, and housing will be the sector placing upward pressure on inflation, even as other categories fall.</p> <h2><strong>Private sector the housing key</strong></h2> <p>We’ve had so many announcements, schemes, rezonings, an “accord”, and more, but very little in the way of new project starts. Government’s inability to solve the housing crisis is proven.</p> <p>It will be up to the private sector. The best we can hope is for Government to play its part in creating an environment in which developers are willing to take on the risk.</p> <p>This is a huge challenge. Construction costs are very high and some <a rel="noopener noreferrer" href="/news/article/more-builders-fail-thousands-of-workers-left-unpaid" target="_blank">building companies have collapsed</a>. Others are on a knife-edge. The appetite for risk is low.</p> <p>The NSW Department of Planning’s own estimates show that only a miniscule proportion of the new homes expected under the Minns Government’s housing density policy, which involves new planning controls around train stations across the state, will be built in the next five years.</p> <p>Department estimates anticipate only 11,400 additional homes will be built in this period, &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/housing-supply-requires-policy-deadlines-not-headlines?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Building and Construction 2024-02-19T11:34:00-08:00 Negative gearing: the myths, facts and what investors need to know https://www.apimagazine.com.au/news/article/negative-gearing-the-myths-facts-and-what-investors-need-to-know?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/negative-gearing-the-myths-facts-and-what-investors-need-to-know?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Every election cycle seems to generate a debate around negative gearing but would changes paring back this property investor tax concession actually impact the property market? <p>It’s that time in the political cycle - negative gearing is once again in the spotlight.</p> <p>Most commentators will tell you altering negative gearing is a death wish for any politician who contemplates it. But that hasn’t stopped <a rel="noopener noreferrer" href="/news/article/property-investors-targeted-as-political-debate-rages-around-housing-affordability" target="_blank">The Greens proposing a winding back of tax benefits for landlords</a>.</p> <p>To fully understand the pros and cons, let’s take a look at negative gearing and the role it plays.</p> <h2><strong>What negative gearing policy is being discussed? </strong></h2> <p>Negative gearing allows investors whose income from a property fails to cover their payments claim that loss and reduce their taxable income.</p> <p>According to the ATO, over 1.9 million people earn rental income from investment properties, with around 1.3 million reporting a net loss.</p> <p>That means 600,000 investors didn’t receive any tax benefit, with many of those paying income tax on their earnings.</p> <p>Over time, many of today’s negatively geared properties will move to neutral, then positive gearing, adding to the government’s tax revenues.</p> <p>In its current form, negative gearing has been around since 1980. But it was the Howard government’s halving of <a rel="noopener noreferrer" href="/news/article/navigating-the-capital-gains-tax-minefield" target="_blank">capital gains tax (CGT)</a> for properties held for at least a year (2000) and, to a lesser extent, allowing super funds to invest in residential property (2007), which saw real estate prices and capital gains truly take off.</p> <h2>Does negative gearing push up property prices?</h2> <p>Negative gearing and CGT discounts do encourage people to invest in residential property, but is this the reason for Australia’s high property prices?</p> <p>Critics of the current regime point out that <a rel="noopener noreferrer" href="/news/article/where-does-australian-property-stand-on-the-world-stage" target="_blank">comparable countries</a> don’t give investors the sort of leg up Australia does.</p> <p>So, you would think these comparable countries would be experiencing lower growth in real estate prices than Australia. But it turns out, most have experienced the same pattern of changes in property values as Australia.</p> <p>That’s because Australia’s negative gearing is just one component adding to a series of factors playing out across most advanced&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/negative-gearing-the-myths-facts-and-what-investors-need-to-know?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Tax 2024-02-18T00:22:17-08:00 Outdated minimum block sizes causing oversized housing headache https://www.apimagazine.com.au/news/article/outdated-minimum-block-sizes-causing-oversized-housing-headache?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/outdated-minimum-block-sizes-causing-oversized-housing-headache?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Australia could do worse than take a read through New Zealand's planning codes and subdivision rules to potentially triple the availability of new homes in our major cities. <p>Is getting rid of minimum lot sizes the solution we’ve all be looking for to solve the housing crisis?</p> <p>For decades councils and state governments have held tight to what some would now consider to be outdated notions that once a block of land is under a certain size you shouldn’t be allowed to build on it.</p> <p>That type of thinking strongly entrenched the 400 square metre (sqm) suburban block as the standard. Before that, it was the 600sqm suburban block. Before that, it was the 1,000sqm suburban block. You get the picture.</p> <p>But as our <a rel="noopener noreferrer" href="/news/article/rapid-population-growth-set-to-transform-property-market" target="_blank">population continues to grow</a> and we seek to affordable accommodate for more people in our main cities, is it time we threw out the whole minimum block concept in favour of something else?</p> <p>Perhaps instead, development applications should be judged on whether the house is being built on a “suitable lot size”.</p> <p>Assessed against minimum benchmarks such as front, rear and side setbacks, rather than an arbitrary “minimum lot size”.</p> <p>This approach would encourage the buyer to dictate what housing is supplied and created. This approach would encourage innovation and creativity in tackling the problem of housing supply and affordability.</p> <p>We’ve already seen a number of <a rel="noopener noreferrer" href="/news/article/granny-flat-rules-relaxed-to-tackle-housing-crisis" target="_blank">state governments waive their rules around granny flats</a> either permanently or temporarily to try and encourage more small-scale housing to provide desperately needed accommodation, but in most circumstances, this doesn’t allow the land to be subdivided.</p> <p>The ACT took a step toward this late in 2023. It introduced legislation that allows landowners to divide their blocks into dual-occupancy housing.</p> <p>The blocks must be 800sqm or more to be able to be split, with one of the two dwellings limited to 120sqm of floor space.</p> <p>The ACT government estimates about 45,000 blocks may be eligible for this type of development.</p> <p>The important thing in this new policy is that it allows for a formal subdivision, meaning each block is on a separate title.</p> <p>Think terraced housing or townhouses on t&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/outdated-minimum-block-sizes-causing-oversized-housing-headache?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (James Fitzgerald) Development 2024-02-16T15:01:10-08:00 Is there really no safer investment than bricks and mortar? https://www.apimagazine.com.au/news/article/is-there-really-no-safer-investment-than-bricks-and-mortar?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/is-there-really-no-safer-investment-than-bricks-and-mortar?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles What does the next decade hold in store for the Australian property market as it responds to factors such as housing supply issues, population trends, economic uncertainty and government policymaking? <p>Property markets around the world are renowned for periods of strong growth in property values and other periods of either flat markets or indeed price correction markets.</p> <p>But those periods are when markets are studied in relatively short-term periods. The true story of real estate is always clearer in the medium to longer term.</p> <p>For example, Australian dwelling values soared 67.5 per cent in the past decade. This was during the aftereffects of the GFC, when we experienced a period of stagnation in the market and, of course more recently, a period of phenomenal price growth.</p> <p>Official figures show that even with <a rel="noopener noreferrer" href="/news/article/first-rba-decision-of-2024-sees-interest-rates-kept-on-hold" target="_blank">high interest rates</a> in 2023, official national price growth was 8.1 per cent.</p> <p>Potential investors missed out on much of that financial gain over the past decade due to hesitancy and uncertainty about whether real estate was a good investment and, in more recent times, the belief that investors could not compete with home buyers as home buyers were paying premium prices in excess of what an investor would pay to get a good return.</p> <p>In reality, the environment for property investors has never been better. Australian vacancy rates have hit record lows according to CoreLogic, with cities such as Adelaide at 0.3 per cent, <a rel="noopener noreferrer" href="/news/article/skyrocketing-perth-rents-a-blow-for-tenants-boon-for-investors" target="_blank">Perth 0.4 per cent</a> and Melbourne 0.8 per cent.</p> <p>Remember that a 3 per cent vacancy rate is regarded as a balanced market. Anything above 3 per cent vacancy will generally see softening in rents and anything under 3 per cent sees rents rising, so with vacancies below 1 per cent, it is no surprise that with demand exceeding supply by such a substantial amount, the latest PropTrack market insights report shows that <a rel="noopener noreferrer" href="/news/article/median-weekly-rents-break-records-crashing-through-600-barrier" target="_blank">Australian rents are 11.5 per cent higher</a> than they were 12 months ago.</p> <p>The stage is set for the journey forward, but with <a rel="noopener noreferrer" href="/news/article/overinflated-or-set-to-fly-the-factors-driving-property-in-2024" target="_blank">an array of factors to weigh up</a>.</p> <p>To keep our economy growing and expanding there is a desperate need for a significant jump in key workers. Whether it is in nursing, doctors, the ADF and most police forces around&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/is-there-really-no-safer-investment-than-bricks-and-mortar?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Investment 2024-02-15T14:40:17-08:00 Borrowers who rethink bank relationship could save $100,000 https://www.apimagazine.com.au/news/article/borrowers-who-rethink-bank-relationship-could-save-100-000?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/borrowers-who-rethink-bank-relationship-could-save-100-000?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles A reassessment of the fraught relationship between borrower and bank could be a timely way to save up to $100,000. <p>Despite the banks offering vastly different mortgage lending rates that could amount to $100,000 over the course of a home loan, refinancing activity has slipped.</p> <p>Research by Canstar also revealed that more than one-third of homeowners and investors say they’re not prepared to sustain mortgage interest rates if remain at the current level for the rest of the year.</p> <p>With the <a rel="noopener noreferrer" href="/news/article/first-rba-decision-of-2024-sees-interest-rates-kept-on-hold" target="_blank">RBA hinting that a rate cut is still not likely</a> in the next six months, with even a rate hike remaining on the cards, borrowers are ill-placed to settle for higher interest rates that could be gifting away tens of thousands of dollars in extra interest payments over the life of their loans.</p> <p>Canstar’s finance expert, Steve Mickenbecker had a Valentine’s Day analogy to highlight where borrowers might be going wrong.</p> <p>“Settling for too long in a loan with an interest rate that you haven’t reviewed in years can lead to heartbreak after realising you could be paying away close to $100,000 or a lot more in interest that isn’t necessary.”</p> <p>“Valentine’s Day roses can set you back $70, chocolates $20, dinner $150 or you could give your significant other their half share of the $100,000 saving potentially available by switching to a low interest rate loan.</p> <p>“It feels like loans are forever and this is the gift that keeps giving,” Mr Mickenbecker said on Wednesday (14 February).</p> <p>The Reserve Bank’s lenders’ interest rate data shows many existing borrowers are settling for higher interest rates.</p> <p>“There are 19 variable interest rates below 5.75 percent listed on Canstar and sure, you may not qualify for the absolute lowest rate in the market but getting a rate below 6 percent is where the game is at.”</p> <p>The major banks are now all <a rel="noopener noreferrer" href="/news/article/where-will-interest-rates-head-in-2024" target="_blank">forecasting the next move from the RBA</a> will be a rate cut later this year. The impact of a 0.25 per cent cash rate cut could reduce monthly repayments for a $600,000 loan over 30 years by $101 down to $3,984.</p> <p>Despite the Reserve Bank of Australia keeping rates on hold at their Fe&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/borrowers-who-rethink-bank-relationship-could-save-100-000?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au () Finance 2024-02-14T12:02:22-08:00 Sydney property juggernaut has stalled but investor targets still abound https://www.apimagazine.com.au/news/article/sydney-property-juggernaut-has-stalled-but-investor-targets-still-abound?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/sydney-property-juggernaut-has-stalled-but-investor-targets-still-abound?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles While the prospect of Sydney delivering another double-digit property price gain in 2024 appears remote, there are some sectors of the market and specific suburbs with upbeat prospects. <p>Depending on who you listen to, the Sydney property market has either started going backwards with growth prospects diminishing or is still inching upwards with pockets of the city shaping up for major capital growth in 2024.</p> <p>According to PropTrack, Sydney home prices have been flat since September, declining a very modest 0.04 per cent in January after dipping very slightly in December as well.</p> <p>CoreLogic paints a slightly rosier picture. Sydney’s property market capital growth has, according to their data, slowed from an annual rise of 11.4 per cent to just 0.2 per cent in the past month and 0.1 per cent over the past quarter.</p> <p>Either way, when weighed up against the <a rel="noopener noreferrer" href="/news/article/perth-still-leading-the-pack-as-national-property-prices-march-on" target="_blank">high-flying Perth</a>, Adelaide and Brisbane property markets, the city’s real estate has taken a breather.</p> <p>A Demographia study published last year indicated Australia was the least affordable housing market in the world, with Sydney the second least affordable market behind only Hong Kong. Other studies regularly place the Harbour City among the top five for unaffordability, which suggests affordability may reached a roadblock where income limitations cannot drive prices higher.</p> <p>Price growth in Sydney’s housing market has been fuelled by population growth, an undersupply of housing and higher levels of investor activity. Geographical constraints and planning restrictions have also limited the expansion of the land stock suitable for housing.</p> <p>While the prospect of Sydney delivering another double-digit property price gain in 2024 appears remote, there are some sectors of the market and suburbs with upbeat prospects.</p> <p>PropTrack Property Market Outlook Report has predicted Sydney's house prices are set to increase up to 5 per cent in 2024.</p> <p>Allen Habbouchi, Head of Project Sales and Distribution, aussieproperty.com, identified six suburbs he expected to outperform the wider market but said units were in for a difficult year.</p> <p>“There are several market segments that are underperforming, for instance, new&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/sydney-property-juggernaut-has-stalled-but-investor-targets-still-abound?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-02-14T00:00:25-08:00 Serious workforce imbalance holding back construction sector https://www.apimagazine.com.au/news/article/serious-workforce-imbalance-holding-back-construction-sector?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/serious-workforce-imbalance-holding-back-construction-sector?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles In construction, women constitute approximately 12 per cent of the workforce and that needs to change if critical skills shortages are to be overcome. <p>In an industry as dynamic and complex as property development, diversity is not just a buzzword; it’s a strategic advantage, with success reliant upon harnessing a diverse range of talents and perspectives.</p> <p>The Australian Housing and Urban Research Institute (AHURI) on Tuesday released a research paper on Tuesday highlighted a lack of focus on gender in housing policy, raising questions about whether housing and homelessness policies and programs are responding the <a rel="noopener noreferrer" href="/news/article/women-closing-property-investment-gap-but-disparities-remain" target="_blank">issues that affect one gender more than others</a>.</p> <p>AHURI has responded to these findings by developing a <em><a rel="noopener noreferrer" href="https://www.ahuri.edu.au/research/final-reports/415" target="_blank">Gendered Housing Framework</a></em> for research and policy development.</p> <p>In my decades of experience in this industry, I’ve witnessed the parallels with housing policy, within the staff composition in the development and construction industry. When you bring together people with different backgrounds, experiences, and viewpoints, you unlock a wealth of creativity, innovation, and problem-solving prowess.</p> <blockquote><strong>Organisations fostering inclusive cultures tend to outperform their counterparts in several aspects, including a 39 per cent increase in customer satisfaction, 22 per cent higher productivity, and 27 per cent greater profitability. </strong></blockquote> <p class="text-center mtn">- Gallup Workplace Studies</p> <p>As outlined in the Australian Human Rights Commission’s toolkit titled <em>Women in male-dominated industries</em>, while women make up nearly 46 per cent of the overall Australian workforce, their representation in certain sectors remains significantly lower.</p> <p>In industries like construction, mining, and utilities, women constitute approximately 12 per cent, 15 per cent, and 23 per cent of the workforce, respectively.</p> <p>Research indicates that having a substantial number of women across all levels of an organisation, including senior management, correlates with enhanced organisational performance.</p> <p>Women bring unique perspectives, insights, and approaches to the table that are essential for tackling the complex challenges faced in property development.</p> <p>From enh&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/serious-workforce-imbalance-holding-back-construction-sector?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Greg Devine) Development 2024-02-13T11:33:00-08:00 Young investor subdivides and conquers the housing crisis https://www.apimagazine.com.au/news/article/young-investor-subdivides-and-conquers-the-housing-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/young-investor-subdivides-and-conquers-the-housing-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles A young property investor has taken an altruistic approach to property investing that delivers a profit while doing his bit to alleviate the housing crisis. <p>West Australian cleaning company owner, 28-year-old Dan Spasojevic, is a new ilk of property investor who expects yield from his chosen property investment strategy but is driven more by doing social good. </p> <p>Deciding this week whether to sell the backyard block behind his <a rel="noopener noreferrer" href="/research/suburb-profile?id=4685&amp;text=Thornlie%20WA%206108" target="_blank">Thornlie</a>, Perth, home, which he’s almost finished subdividing, or build a dwelling there to sell, Mr Spasojevic’s singular goal is to play his part in easing the housing crisis.</p> <p>Mr Spasojevic started subdividing his first property four years ago, funded by his residential and commercial cleaning business but has had a keen interest in property investment and ownership since his teens, listening to property podcasts, and reading books.</p> <p>“I had the passion, but it took a while to getting around to get into it, and now the more I do it, the more I really enjoy seeing a project develop to the outcome, like on my previous subdivided property a family has built there already and they’re living there, so it’s quite interesting to see the full cycle of something that you’ve created,” he said.</p> <p>He told <em>API Magazine</em> that homeowners everywhere play a pivotal role in addressing the housing crisis.</p> <p>“It’s a passion I guess, and I have a real interest in the topic when it comes to subdivision but I’m doing this because I’ve got quite a lot of friends and family that live more than 60 minutes from the city - on a good day - who complain about the traffic, and if they could live somewhere closer to where they work they could save two hours per day, and 500 hours in a year,” Mr Spasojevic said.</p> <p><a rel="noopener noreferrer" href="/news/article/perth-running-out-of-greenfield-land-facing-20-000-home-shortfall" target="_blank">Building further from city centres</a> has solved housing shortages in the past, Mr Spasojevic said, but this approach is flawed due to the associated infrastructure costs and increased travel times and a better idea is finding solutions that utilise existing urban spaces more efficiently.</p> <p>“At 150 kilometres long, <a rel="noopener noreferrer" href="/news/article/will-australias-cities-continue-to-expand-indefinitely" target="_blank">Perth is the longest metropolitan area in the world</a>, so the problem with going further and further out is wasting&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/young-investor-subdivides-and-conquers-the-housing-crisis?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Ev Foley) Investor In Focus 2024-02-12T15:10:47-08:00 Property investors targeted as political debate rages around housing affordability https://www.apimagazine.com.au/news/article/property-investors-targeted-as-political-debate-rages-around-housing-affordability?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/property-investors-targeted-as-political-debate-rages-around-housing-affordability?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Property investors are taking centre stage in a political wrestling match over the passage of the Government's Help to Buy scheme, with negative gearing, capital gains tax and stamp duty all subjected to debate around housing affordability. <p>Housing has stepped onto centre stage in the federal government policy arena, with funding of the Help to Buy scheme emerging as the political football around which different sides of the debate are trying to kick goals.</p> <p>As they did when they <a rel="noopener noreferrer" href="/news/article/national-housing-fund-finally-passes-with-concessions-to-greens" target="_blank">extracted a series of housing policy concessions</a> when the Labor Government’s housing centrepiece, the Housing Australia Future Fund (HAFF), passed with a majority vote in the Senate in September, The Greens are now seeking changes to negative gearing and capital gains tax discounts.</p> <p>The Greens hold the balance of power in the Senate and for Labor to get their scheme up and running they will require the support of The Greens and two additional crossbenchers.</p> <p>The <a rel="noopener noreferrer" href="/news/article/labor-ups-the-election-stakes-with-housing-shared-equity-scheme" target="_blank">Help to Buy scheme</a> aims to assist up to 40,000 prospective buyers a year in an initiative whereby the government takes equity in their homes amounting to 30 per cent for an existing build or 40 per cent in a new build, allowing those struggling with housing affordability to use smaller deposits and loans for their purchase.</p> <p>The Greens’ latest powerplay on the housing policy front comes as affordability issues gather momentum, fuelled further by a study released Monday (12 February) that found stamp duty costs home buyers up to six times more than a generation ago, acting as a significant upfront cost and a barrier to entering the housing market.</p> <p>The findings of the study made by E61 Institute in collaboration with PropTrack found stamp duty costs around six months take-home income in Sydney and Melbourne, which has doubled since the 2000s and grown as much as six-fold since the last generation.</p> <p>In Sydney, stamp duty on a median-priced home is equivalent to six months of full-time post-tax income. That is 5.4 times higher than it was in the early-to-mid 1980s.</p> <p>In Melbourne, buyers need the equivalent of six months of full-time post-tax income – a whopping six-fold increase from four decades ago – the largest increase of any state.</p> <p>The research concluded stamp duty&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/property-investors-targeted-as-political-debate-rages-around-housing-affordability?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Finance 2024-02-12T13:04:23-08:00 Which capital cities shape up as the investment hotspots of 2024? https://www.apimagazine.com.au/news/article/which-capital-cities-shape-up-as-the-investment-hotspots-of-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/which-capital-cities-shape-up-as-the-investment-hotspots-of-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The three state capitals that delivered the strongest capital growth in 2023 are also looming as the standout property investment hotspots for the year ahead. <p>It’s expected that Adelaide property keep powering onwards and upwards in 2024 as it has all the drivers for a solid investment market.</p> <p>This growth will be matched in Perth and Brisbane, where we have seen some of the strongest gains throughout 2023.</p> <p>These markets are underpinned by strong employment growth, housing affordability and strong rental returns still attracting investors and homebuyers alike to these markets.</p> <p>Keep in mind, <a rel="noopener noreferrer" href="/news/article/city-with-tightest-rental-market-in-australia-offers-serious-investor-returns" target="_blank">Adelaide</a>, Perth and Brisbane offer something for everyone, with low entry price points for first time buyers, strong rental demand and rental growth for investors and great work and lifestyle amenities for families and retirees.</p> <p>When considering these markets, stay within 45 minutes to the city and only look at established properties, and nothing off-the-plan.</p> <p>Distance from the CBD is a key player in the Adelaide, <a rel="noopener noreferrer" href="/news/article/brisbane-property-makes-strong-start-to-2024" target="_blank">Brisbane</a> and Perth market, as people don’t commute an hour to work as they do in Sydney and Melbourne.</p> <h2><strong>Sydney property off to wobbly start</strong></h2> <p>Sydney had a rocky start to 2023, with negative growth trends and soft selling prices but managed to rally toward the back end of the year and close out the year up 11.4 per cent over the past 12 months.</p> <p>The <a rel="noopener noreferrer" href="/news/article/first-rba-decision-of-2024-sees-interest-rates-kept-on-hold" target="_blank">slowing of rate rises</a> and lack of housing stock has put the pricing pressure back on the Sydney market and pushed values north again.</p> <p>With a lack of new construction and dwelling supply, due to supply chain shortages over the past few years and a lack of skilled trade labour, the housing shortage will continue into 2024 in parallel with population growth and continued demand on housing stock.</p> <p>The lack of housing supply will create growth in the front end of 2024, however, this will not be enough to save <a rel="noopener noreferrer" href="/news/article/sydney-values-likely-to-hold-up-in-2024-reinsw" target="_blank">the Sydney market</a> in the back end of the year.</p> <p>Expect modest gains in this market for the early part of 2024, but a high level of mortgage stress to prevail if rates continue to rise into 2024, especially given Sydneysiders carry the highest mortgages in the country.</p> <p>If rates&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/which-capital-cities-shape-up-as-the-investment-hotspots-of-2024?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Anna Porter) Investment 2024-02-10T04:24:00-08:00 Chinese and other nations shunning Australian property https://www.apimagazine.com.au/news/article/chinese-and-other-nations-shunning-australian-property?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/chinese-and-other-nations-shunning-australian-property?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Foreign buyers of Australian real estate are conspicuous by their relative absence, with economically challenged Chinese investors leading the downturn. <p>Foreign investment in Australian property has taken a major downturn, with the value and number of foreign residential real estate transactions taking a big hit in the most recent quarter measured.</p> <p>The Foreign Investment Review Board (FIRB) on Friday (9 February) released data for the quarter to 30 September 2023 showing that the number of residential real estate investment proposals approved was 1,374 with a total value of $1.5 billion.</p> <p>China was the largest source for approved residential real estate by number and value ($0.7 billion), followed by Hong Kong SAR ($0.1 billion), Vietnam ($0.1 billion), India ($0.1 billion), and Taiwan ($0.1 billion).</p> <p>While China remains unrivalled as the top source of foreign investment, there has been a large fall from the previous quarter.</p> <p>The $700 million invested in the September quarter is a shadow of the $1.1 billion three months earlier, while the number of transactions from China fell from 826 to 523.</p> <p>The FIRB report only tracks purchasing by those who do not have residency.</p> <p>Among the top 10 nations that are sources of residential investment, only India and Nepal recorded an uptick in the number of transactions over the previous quarter.</p> <p>Juwai IQI Co-Founder and Group Managing Director Daniel Ho said he expected the downturn to be short-lived as <a rel="noopener noreferrer" href="/news/article/chinese-buyers-fleeing-corruption-and-turmoil-turn-to-australian-real-estate" target="_blank">China’s economy continued to emerge</a> from a slower post-Covid recovery than has taken place elsewhere in the world.</p> <p><span>“</span>China is still the number one investor, but what we see with our clients is that fewer offshore Chinese and Hong Kong buyers are purchasing. </p> <p><span>“</span>Instead of buying as non-residents, most are waiting until they have permanent residency in Australia.</p> <p>“If you know you’re on the path to getting permanent residency, there is no reason to pay the extra costs that come with purchasing as a non-resident, including the extra stamp duties and the uncertainty of the FIRB process.</p> <p>“Also, owning property as a foreign buyer, with land tax and vacancy tax, is more expensive th&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/chinese-and-other-nations-shunning-australian-property?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Residential 2024-02-09T12:17:24-08:00 A 460-property portfolio and little interest in profit https://www.apimagazine.com.au/news/article/a-460-property-portfolio-and-little-interest-in-profit?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/a-460-property-portfolio-and-little-interest-in-profit?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles Overseeing a property portfolio with several hundred properties and more than 120 staff members is all in a day's work for Lavinia Dack, Group General Manager Property, UnitingCare Queensland. <p>Managing a portfolio of more than 450 properties is not your ordinary real estate investor profile.</p> <p>Overseeing a property portfolio of this scale with little interest in generating a profit is even more unusual.</p> <p>For Lavinia Dack, Group General Manager Property at UnitingCare Queensland, managing a portfolio comprising 47 aged care homes, 39 retirement villages, four hospitals, 130 Lifeline retail outlets, 11 warehouses, plus call centres, many offices, residential buildings and developable land, is all in an exhausting day’s work.</p> <p>As a not-for-profit charity organisation, the emphasis of their property portfolio is on delivering community services rather than investment returns.</p> <p>A limited number of UnitingCare Queensland properties are retained primarily for their value as an investment. There is also an eye on the future, with their portfolio also including some properties primarily obtained to ensure they can provide the right buildings and grounds for growth in the years and decades ahead.</p> <p>Ms Dack told <em>API Magazine</em> that their primary business model is to the develop property as an owner-operator.</p> <p>“For example, we are currently completing a new aged-care facility, BlueCare Sunrise Beach (located in <a rel="noopener noreferrer" href="/research/suburb-profile?id=9865&amp;text=Noosa%20Heads%20QLD%204567" target="_blank">Noosa</a> Shire), which will open in the next few months.</p> <p>“Because we are the long-term owner and operator, we prioritise quality in both the design and construction and carefully consider how the buildings can be used as models of care evolve.</p> <p>The team she manages is made up of 125 people, including leasing agents, valuers, development managers and a large maintenance team.</p> <p>She said they were always looking for innovative ways to deliver property projects.</p> <p>“The Sunrise Beach development is unusual, as we own the adjacent site and have partnered with Keyton (formerly part of Lendlease) to build and operate a retirement village.</p> <p>“It’s a unique partnership in the property sector, where we have blended a not-for-profit social service organisation built on compassion&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/a-460-property-portfolio-and-little-interest-in-profit?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Expert In Focus 2024-02-08T14:55:22-08:00 Investor or first home buyer, the housing crisis does offer opportunities https://www.apimagazine.com.au/news/article/investor-or-first-home-buyer-the-housing-crisis-does-offer-opportunities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/investor-or-first-home-buyer-the-housing-crisis-does-offer-opportunities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The housing crisis presents opportunities for investors, as well as first-time buyers through government schemes that assist in purchasing homes with smaller deposits​​. <p>Australia’s housing market is facing rising unaffordability and a growing need for accessible and affordable housing solutions.</p> <p>There is work being done to address these challenges, and there are opportunities that present themselves for real estate investors and home buyers.</p> <p>Australia has some of the least affordable housing in the world, with Sydney and Melbourne among the top 10 most expensive cities globally for housing​​.</p> <p>The <a rel="noopener noreferrer" href="/news/article/property-price-growth-set-to-double-pace-of-inflation-over-ten-years" target="_blank">high cost of housing</a>, coupled with rising interest rates and inflation, has exacerbated the affordability crisis​​​​. This has led to a situation where a median-income household in Australia can now afford only 13 per cent of homes sold across the country, the lowest share since records began in 1995​​.</p> <p>There are some compelling and disturbing figures that epitomise the current state of housing affordability.</p> <p>More than 1.8 million new households are expected to form in Australia from 2023 to 2033, with a projected supply shortage of around 106,300 dwellings over the next five years​​.</p> <p>The supply of new dwellings is expected to fall to 127,500 in 2024-25, with a recovery anticipated after 2025-26​​.</p> <p>An estimated 377,600 households are in housing need, comprising those in <a rel="noopener noreferrer" href="/news/article/median-weekly-rents-break-records-crashing-through-600-barrier" target="_blank">rental stress</a> and experiencing homelessness​​.</p> <h2><strong>Government housing initiatives and policy responses</strong></h2> <p>Housing is consistently rated as one of the top few priorities whenever voters are polled about election issues and the Federal Government is all too aware of the fact that 30 per cent of Australians are in a rental property and a similar proportion of home owners are in mortgage stress.</p> <p>In response, the Government has launched a string of initiatives and schemes.</p> <p>The <a rel="noopener noreferrer" href="/news/article/national-housing-fund-finally-passes-with-concessions-to-greens" target="_blank">Housing Australia Future Fund</a>, investing $10 billion to build 30,000 new social and affordable rental homes in its first five years​​.</p> <p>The <a rel="noopener noreferrer" href="/news/article/the-c-word-used-to-describe-rental-markets-record-low-vacancy-rates" target="_blank">National Housing and Homelessness Plan</a> aims to address housing challenges through reforms and collaboration with stakeholders​​.</p> <p>The <a rel="noopener noreferrer" href="/news/article/pm-reveals-rent-rise-restrictions-ambitious-new-building-targets" target="_blank">National Housing Accord</a> sets &hellip;</p> <a href='https://www.apimagazine.com.au/news/article/investor-or-first-home-buyer-the-housing-crisis-does-offer-opportunities?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Lloyd Edge) Investment 2024-02-07T09:46:04-08:00 More builders fail, thousands of workers left unpaid https://www.apimagazine.com.au/news/article/more-builders-fail-thousands-of-workers-left-unpaid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles https://www.apimagazine.com.au/news/article/more-builders-fail-thousands-of-workers-left-unpaid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles The collapse of two more major builders, St Hilliers and CMG Homes, has underscored the horrific start to 2024 for the construction industry. <p>The chaos enveloping the construction industry continues to unfold, with more major builders collapsing in recent days and hundreds of reports flooding in about unpaid wages within the sector.</p> <p>Among the latest business casualties are St Hilliers, which has folded and halted work on 21 multimillion-dollar development projects around Australia, and Brisbane’s construction company CMG Homes that lapsed with $300,000 in unpaid debts.</p> <p>ASIC data revealed 1,541 reports of unpaid wages by construction companies entering administration, almost 1,000 more breaches than any other industry on the list.</p> <p>New South Wales has been particularly hard-hit with around 1,600 businesses in the state engaging an external controller. The most impacted sector was construction, which accounted for 80 per cent more companies under administration than the next most affected industry category — food and accommodation services.</p> <p>The past week has been a terrible one for housing in Australia, with dwelling approvals and <a rel="noopener noreferrer" href="/news/article/lagging-building-approvals-point-to-a-decade-of-housing-crisis-pain" target="_blank">loans for purchasing or constructing a new home</a> diving.</p> <p>The Federal Government’s ambition to build 1.2 million over five years, or 240,000 homes a year, appears sunk before it has left its berth. Annual dwelling approvals collapsed to only 162,200, which was the lowest result since March 2013.</p> <p><span><a rel="noopener noreferrer" href="/news/article/construction-companies-continue-to-collapse-by-the-thousands" target="_blank">Almost 1,400 businesses collapsed</a> in the second half of 2023 and</span> St Hilliers<span>’</span> demise has only added to the sense of gloom within the building industry.</p> <p>WLP Restructuring was appointed as voluntary administrator of seven entities within the Sydney-based St Hilliers group of companies.</p> <p>The private construction company is a 34-year-old apartment, commercial and infrastructure builder that had a range of major projects in progress and had contracts all over the country, particularly in the defence industry.</p> <p>The company, which racked up losses of around $12 million over two years, released a statement this week.</p> <p>“St Hilliers has told sub-contractors not to come into work at 21 work sites&hellip;</p> <a href='https://www.apimagazine.com.au/news/article/more-builders-fail-thousands-of-workers-left-unpaid?utm_source=API+RSS+Feed&utm_medium=rss&utm_campaign=Latest+Articles' target='_blank'>Read more</a> editor@apimagazine.com.au (Craig Francis) Building and Construction 2024-02-06T15:43:11-08:00