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Rentals – by Matusik



Moreton Investor (9), Property Management, Real estate Moreton, Mortgage Broker Moreton, Moreton property market

We keep on reading about how low residential vacancies rates are across much of the country. Moreton Investor (9), Property Management, Real estate Moreton, Mortgage Broker Moreton, Moreton property market

Ditto on how much rents have risen; and the expectation that they will continue rising, and at the same pace, well into the future.

But several sub-measures of the rental market suggest that rental growth is already slowing down.  Also, more renters are sharing accommodation in order to afford to live in preferred locations.  Plus, renters are leaving sub-par, even average digs, and relocating to better properties.  Renters are also staying longer in quality & well maintained homes & occupying lesser quality properties for increasingly shorter leases.

Some statistics

There are some 1,600 postcodes across Australia.  Last year, 40% of these experienced a decline in their rental vacancy rate, whilst just over half (52%) saw an increase in the number of dwellings available to rent.  Eight per cent saw no change in rental supply.

Nine out of ten postcodes across the ACT saw a lift in vacancy rates during 2012, as did seven out of ten in Tasmania & two out five postcodes across NSW also experienced an increase in rental supply.  Western Australia & Queensland had the highest proportion of postcodes (55% & 50% respectively) experiencing a decrease in rental supply.

When looking closer to home, median house rents across Brisbane have increased by $70 per week over the last five years (2007 to 2012 calendar years) but the rate of growth has slowed significantly in recent times.  Close to half of this rental growth occurred between 2007 & 2008, and whilst median house rents rose $15 between 2010 & 2011, they rose just $5 last year.

The same applies to Brisbane apartment rents, which rose $80 in total, on average, over the same time period.  Yet, $40 of this increase was in 2007-08, with median rents also just rising $5 last year.

When it comes to rental demographics, more people are sharing.  A consistent theme across Queensland rental agencies is the increase in the number of people per dwelling.  Many have told us that there are around 30% more people living in each rental property when compared to a few years ago.

I assume this is taking place elsewhere across the country.  Tenants are leading the ‘space for place’ charge, forgoing personal space in order to afford to live near the action.  The 2011 Census doesn’t supply us with the number of people renting, but some quick maths suggests that 2.5 people live, on average, in the nation’s 2.3 million rental dwellings.  Ten years ago, the average size of the rental occupancy across Australia, was closer to 2.

My comments

My experience – regardless of the stage in the property cycle – is that competition is fierce in rental markets.  Prospective tenants always compare your property to whatever else is on offer.  They just don’t blindly accept the asking rent without doing their homework.  And these days, lots of it.  Many parents wish they had studied that hard when at school or Uni!

Too much commentary is based around the total level of supply.  Poor product doesn’t rent well, regardless of the lack (or otherwise) of supply.  There can be, for example, 1,000 new apartments being developed in one postcode, much of which is likely to be pretty average in terms of liveability.  As a result of this quantum of pending supply, the mortgage insurers, valuers & investment sellers all blacklist such an area regardless of knowing what stock is actually being supplied.  The well-targeted & designed project(s) in the same area – which will most likely rent out well & resell for a premium – now get dragged down by this helicopter pigeonholing.  The devil is in the detail.  Sadly, detail takes time.  Time costs money.

Developers often seek attractive forward rental estimates to help sell their new product – but in light of the above (and the compromised nature of much of the new stock currently on offer) – the anticipated weekly rents seem, to me, to be quite high & highly improbable.  Investors should do their maths on a lower rental figure – something like 10% to 15% less – to be on the safe side.

Don’t expect rents to rise automatically every year.  There are many things an investor can do to maximise rents, but again, my experience suggests that rents don’t rise every time a lease is up & keeping a good tenant, even for a bit less rent, is far better than getting more money & having tenant problems.  Oh the tales I could tell!

An investor’s aim always should be to sign the best tenant for the highest possible rent in the lowest possible vacancy time.  Never let your property sit – advertised for rent – vacant for too long.  Properties should be rented out in weeks, not months.  Waiting too long stuffs up your cash flow & often gets you less rent in the end.  If you want to take longer, do not list it for the full time.  It will look stale.  Target your lease periods around maximum take-up periods.  They vary according to local drivers – i.e. universities, hospitals, new construction projects etc.  Ask the local rental agencies for their advice.

Finally, and we are starting to sound like a broken record, buy an investment property that can be shared.  One-bedroom stock in an inner city location is fine, just make sure the apartment design/proportions can accommodate a couple if needed.  Ditto when it comes to two-bedroom product – having separate bedrooms, with their own ensuites, allows two unrelated couples or singles to share.

In fact, the one ensuite per bedroom ratio is proving to be a good one, especially in regional markets, where resource workers often share accommodation once friendships are established.  Four middle-aged men in a four-bedroom/four-bathroom house might not smell too crash hot, but I bet my bottom dollar it would show a great rental return.


Article originally published   26/2/2013


Sydney Baby Boomers drive real estate boom in Brisbane



Sydney Baby Boomers drive real estate boom in Brisbane

Brisbane’s bayside suburb of Wynnum is an attractive option for southern buyers.Source:Supplied

A MIGRATION of cashed-up Baby Boomers from Sydney will lead to a real estate boom in Brisbane, according to property investment experts.

A Property Investment Professionals of Australia (PIPA) members’ survey revealed that Brisbane was regarded as the best capital city for property investment.

Of the members who participated in the survey, 46.15 per cent rated Brisbane as the best capital for investment prospects in 2018.

PIPA chairman Peter Koulizos said the Queensland capital was expected to boom as a side effect of the Sydney property boom happening when Baby Boomers were looking at retiring.

“People that have a lot of equity in their home can retire or semi-retire by selling up and buying a home in southeast Queensland,” Mr Koulizos said.

And with the median house price in Sydney more than $1 million, he said this would give them a sizeable pile of cash left over after buying a home further north.

“That is because there is such a big price difference between Brisbane and Sydney,” he said.

A PIPA survey from last year also rated Brisbane as the best capital city in which to invest, but in the past 12 months the average house price has increased by just 2.9 per cent.

Mr Koulizos said a boom would come eventually, but picking the exact point was tricky.

“Property booms take a long time to gather momentum, I doubt you will see double digit growth in Brisbane this year but it may be different next year,” he said.

Melbourne was the next best investment option according to the survey, with 19.23 per cent believing it was a good place to invest, followed by Perth at 15.38 per cent.

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The property clock strikes big for hot spot areas



The property clock strikes big for hot spot areas

9 Lion St, Ipswich. Picture:

DESPITE last month’s previous lacklustre values, analyst Michael Matusik has identified the areas on the upswing.

While property values remained fairly stagnant during February, property analyst Michael Matusik has revealed where the housing market is on the upswing.

Mr Matusik’s latest property clock for houses, has Brisbane, Gold Coast, Logan, Redlands, Sunshine Coast and Gympie all in upswing.

He said a market’s position on the property clock was based on the strength and direction of key indicators including sales numbers, price and rent, demand and how much new supply there was.

His latest Matusik Missive also listed Ipswich, the Fraser Coast and Noosa markets as heading into upswing territory.

Ipswich has many beautiful homes, often at prices well below what something similar would cost in Brisbane’s suburbs. A four-bedroom home at 9 Lion St,Ipswich is listed for $879,000.

The land the home sits on was bought in 1904 from the family of the then Ipswich Mayor Mr Pettigrew. A home was built on it in 1907.

The period home has 3.5m high ceilings, VJ walls, period window, and timber floorboards which have all been restored.

REAL ESTATE: 9 Lion St, Ipswich. Picture:

REAL ESTATE: 9 Lion St, Ipswich. Picture:

The home has two new bathrooms, a large separate dining area and study. It is listed through Steve Athanates of NGU Real Estate Ipswich.

On the Gold Coast at Robina, 196 Easthill Drive is listed for more than $850,000.

The three-bedroom home is within the Glades Golf Community.

It has formal and informal living and dining areas, and an outdoor entertainment area with a swimming pool nearby.

196 Easthill Drive, Robina. Picture:

196 Easthill Drive, Robina. Picture:

It is listed through Ian and Linda Mills of McGrath – Palm Beach.

On the Sunshine Coast at Noosaville a home at 15 Bluebell Court is listed for offers of more than $740,000.

The three-bedroom home is in a cul-de-sac in a residential pocket bordered by the Lake Doonella Reserve.

The single-level home has open plan living and dining areas. An outdoor area overlooks the pool and reserve at the rear of the property.

15 Bluebell Court, Noosaville. Picture:

15 Bluebell Court, Noosaville. Picture:

The property has a double lockup garage, plus on-site side parking for a boat or caravan, on the 975sq m block.

It is listed through Tansy Grant and Justin Sykes of Ray White – Noosa.

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Where to invest: These are the suburbs where house prices are tipped to grow



Where to invest These are the suburbs where house prices are tipped to grow

Annaliese Bullock, 27 with husband Jared, 27 and daughter Lyla 5 months sold their Burpengary before it even went on the market. Picture: AAP/ Megan Slade.Source:News Limited

THESE are the rising stars of Brisbane’s property market, the 27 growth suburbs investors need to know about.

INVESTORS chasing capital growth in Brisbane are spoiled for choice, with a new report identifying 27 suburbs where house prices are tipped to rise — and more than half of them have a median price of less than $500,000.

Property analyst Terry Ryder has identified the rising stars of the property market — where sales are rising steadily and house prices are set to follow. And they’re not the inner-city, blue chip suburbs you might expect.

Terry Ryder, managing director of

Terry Ryder, managing director of Corp Australia

Moreton Bay is the number one local government area in the state for growth, according to the latest Price Predictor Index report from Hotspotting.

The report examines sales activity, rather than prices, to determine the best and worst local government areas for property market growth.

This property at 8 Kroll St, Kippa-Ring, is inviting interest over $379,000.

This property at 8 Kroll St, Kippa-Ring, is inviting interest over $379,000.Source:Supplied

This big, four-bedroom home at 35 Westminster Rd, Bellmere, is available for offers over $379,000. Picture:

This big, four-bedroom home at 35 Westminster Rd, Bellmere, is available for offers over $379,000. Picture:

The Moreton Bay region has 10 rising star suburbs where sales have been steadily increasing including Banksia Beach, Bellmere and Deception Bay.

This family home at 33 Male Rd, Caboolture, is on the market for offers over $349,000.

This family home at 33 Male Rd, Caboolture, is on the market for offers over $349,000.Source:Supplied

This cute Queenslander cottage at 62 Tibrogargan Drive, Narangba, is on the market for offers over $355,000.

This cute Queenslander cottage at 62 Tibrogargan Drive, Narangba, is on the market for offers over $355,000.Source:Supplied

Quarterly sales in Burpengary have risen from 69 to 97 in the past six quarters, while at Sandstone Point, sales are up from around 40 per quarter to 55 to 60.

Homes are selling so fast in the area that Jared and Annaliese Bullock just sold their four-bedroom house in Burpengary for $475,000 before they had a chance to even put it on the market.

Mrs Bullock said she contacted an agent at RE/MAX Ultimate, who brought through a couple of potential buyers and the offer was made within days.

But she’s not too surprised, given how close the suburb is to the train station, shops and the highway. The couple also recently bought two units as investment properties in nearby Caboolture. Acacia Ridge, Algester, Eight Mile Plains, Kuraby and Sunnybank Hills are also predicted growth areas.

This four-bedroom home on 617 sqm at 13 Stonewood St, Algester, is for sale.

This four-bedroom home on 617 sqm at 13 Stonewood St, Algester, is for sale.Source:Supplied

“It’s the affordable, outer areas that have got the most activity at the moment,” Mr Ryder said.

“The infrastructure is pretty good, with train links to the centre of the city, and there’s lots of shopping centres and good amenities.”

“The sweet spot is to be about 200 metres from a school, a shopping centre and a train station.”


Acacia Ridge $402,000

Algester $493,000

Banksia Beach $550,000

Bellmere $345,000

Birkdale $533,000

Boondall $490,000

Burpengary $420,000

Caboolture $340,000

Caboolture South $290,000

Deception Bay $345,000

Eight Mile Plains $788,000

Ferny Grove $595,000

Goodna $324,000

Jimboomba $480,000

Kippa Ring $415,000

Kuraby $679,000

Mt Warren Park $390

Narangba $458,000

Petrie $410,000

Raceview $318,000

Sandstone Point $420,000

Sinnamon Park $720,000

Springfield $426,000

Sunnybank Hills $660,000

Tingalpa $516,000

Victoria Point $522,000

Woodridge $299,000

Source: Hotspotting

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