Queensland is facing a crisis of lack of rental accommodation with almost 80% of Queensland’s rental market experiencing extremely low vacancy rates. Add to this the rent value increase reported recently by CoreLogic (6.6% in the 20-21 fin year) and we can see some real opportunities in between the challenges faced by renters.
As the title suggest, we’re going to look at the topic from two angles to highlight how you as a property investor or future homeowner can turn what seems to be a problem into a positive.
So, what does this mean for property investors?
The increase in rent value is the strongest annual appreciation in rents since February 2009 and if you already own an investment property you’re probably enjoying the hike. If you’re yet to purchase your first investment then you’ve got a bit to consider.
Sure, property prices are up thanks to the various factors at play – low interest rates, shortage of new properties, trades and materials etc – but there’s still plenty of great options out there if you know what to look for and where.
So, don’t let the talk of high property prices keep you out of the conversation when considering your first or next investment property – there’s great options available, and based on the stats from the very beginning of this article, the returns really are there for the right property.
If you’re wondering if you can access an investment property, speak with one of our Finance Specialists, we can assess your situation and show you how you can take advantage of the current rental climate.
Now, to the Prospective Homeowners among us …
How much are you paying in rent? CoreLogic data tells us it’s likely to be more than what you’d be paying for a mortgage. You read that right – it’s likely cheaper to be paying off your own home than what it costs you to rent where you are.
To back all that up, let’s go back a little to the statistics about housing affordability in and around major cities…
If you’re an average income earner in Southeast Queensland, you have options in suburbs like Fortitude Valley, Wooloongabba and if you’re a couple you could head to inner Brisbane suburbs like Norman Park and Ashgrove.
On that same income in Sydney as an individual, you could move into the Western Suburbs or as a couple find yourself a unit in the CBD or stretch for a house in Belmore or Bexley.
Further south, single Victorian buyers might select something in Coburg, Carlton or Frankston but couples might find something great in Brunswick or Newport for example.
We can’t be clearer – if you’re renting, now’s the time to speak with our Mortgage team so you can be paying your own home off instead of paying too much for someone else’s.
If you’d like to learn more or discuss your options, speak with one of our team today – it costs you nothing and could literally change your life. Call us on 1300 469 840 or email us and we’ll be in touch.