Dear Valued Associates and Friends, The following article is for your perusal and information only:-
MAR 03 2012
This Saturday we cover rents, affordability and NRAS. 1. When do rents rise the most? According to the ABS, residential rents across Australia have been rising,
on average, by 5.7% per annum over the last five years. Darwin has been
leading the charge with an annual change of 7.9%; followed closely by Perth
with 7.5%. Brisbane has enjoyed - well not if you rent I suppose - a solid
6% clip per annum; Sydney 5.7% and the other capitals fall in the
mid-to-high 4% range. Regional cities have often done much better, with those in close proximity
to mining operations seeing double-digit growth. One suspects that such
increases cannot go on forever, but at present they aren't slowing down. The best time to lease out a residential property is either during the June
or December quarters. The worst time is during the first three months of
the year. March Quarter might be the busiest leasing period and
April-May-June the traditional slow period, but the numbers don't lie. Whilst there are more tenants looking at the start of each year, there are
also a lot of properties available for rent. Supply often exceeds demand,
even if it is only for a short while. What often occurs is that landlords
ask for too much rent during the first months of the year and end up with
extended vacancies. It pays dividends to try to get your lease to expire around Easter each
year. It might be quieter in terms of tenants looking, but there often
isn't as much around to rent. So, in theory at least, landlords should be
able to get a bit more rent. 2. More affordable Affordability, as measured by the Commonwealth Bank's index, improved again
in the December Quarter. That's the fourth consecutive quarter in which
affordability has improved nationally. All three major components to the
index - incomes, interest rates and prices, moved in the right direction. The median Australian dwelling price was $473,000, which required a monthly
mortgage repayment of $2,955 and a qualifying household income of $118,200.
The average weekly wage for a full-time employed person late last year was
$69,200. It takes 1.8 full-time wages to buy the "typical" home down under. The lowest affordability multiple - how many full-time wages it takes to buy
the average home - is in Tasmania (1.5); followed closely by Western
Australia (1.5) and the regional areas across New South Wales (1.6),
Queensland and South Australia (both 1.7). Brisbane now, too, has a 1.7
affordability multiple (try saying that three times and quickly).
Victoria's remains at 1.8 and it still takes two full-time wages to buy the
average home in Sydney. History shows that when this measure remains below 1.7 for over twelve
months, then sales improve and in due course, prices too. As we wrote last Saturday, fingers crossed. 3. And more NRAS too Our NRAS article from late last year has been our second most popular post
so far. Those who have joined the twitter ranks will know that I gave a
presentation regarding NRAS during the week on behalf of the Brisbane
Housing Company. I made some points which I think are worth repeating here: NRAS does not make a poor property a good one Beware, as some operators are
marking up NRAS products Buy good investment property first, treat NRAS as a
bonus Apparently, just short of 40,000 NRAS incentives have been approved
across the country with just 5,400 so far used and 34,600 waiting
allocation. A further 10,000 are waiting in the wings, so to speak. Across Australia, three out of five NRAS allocations have been used for
apartments, with another 20% each going to detached houses and townhouses. Queensland has received 28% of the total NRAS incentives approved to date,
with 11,300. Just 13% or 1,450 have been used. Two out of five (39%)
Queensland allocations have gone to apartments, another 38% to detached
houses and 23% to townhouses. When it comes to product types, studio apartments got just 3% of
Queensland's NRAS allocations. One-bedroom product got 18%; two-bedders
26%; three-bedroom dwellings 37% and four-bedroom stock 16%. Enjoy your weekend, and remember.. pass this onto others, you have the time,
it is Saturday after all. Follow me, too, on twitter and LinkedIn. unquote Best regards
Linda J. Debello
L J Gilland Real Estate Pty Ltd
http://www.ljgrealestate.com.au
PO Box 19, Zillmere 4034.
Office:- 07 3263 6085
Mobile:- 0409995578 Confidential Email:- The information in this message is intended for the
recipient named on this email. If you are not that recipient, please do not
read, copy, distribute or act upon the message as the information it
contains may be priveleged. If you have received this message in error,
please notify us immediately by return email. Thank you for your
co-operation.
MAR 03 2012
This Saturday we cover rents, affordability and NRAS. 1. When do rents rise the most? According to the ABS, residential rents across Australia have been rising,
on average, by 5.7% per annum over the last five years. Darwin has been
leading the charge with an annual change of 7.9%; followed closely by Perth
with 7.5%. Brisbane has enjoyed - well not if you rent I suppose - a solid
6% clip per annum; Sydney 5.7% and the other capitals fall in the
mid-to-high 4% range. Regional cities have often done much better, with those in close proximity
to mining operations seeing double-digit growth. One suspects that such
increases cannot go on forever, but at present they aren't slowing down. The best time to lease out a residential property is either during the June
or December quarters. The worst time is during the first three months of
the year. March Quarter might be the busiest leasing period and
April-May-June the traditional slow period, but the numbers don't lie. Whilst there are more tenants looking at the start of each year, there are
also a lot of properties available for rent. Supply often exceeds demand,
even if it is only for a short while. What often occurs is that landlords
ask for too much rent during the first months of the year and end up with
extended vacancies. It pays dividends to try to get your lease to expire around Easter each
year. It might be quieter in terms of tenants looking, but there often
isn't as much around to rent. So, in theory at least, landlords should be
able to get a bit more rent. 2. More affordable Affordability, as measured by the Commonwealth Bank's index, improved again
in the December Quarter. That's the fourth consecutive quarter in which
affordability has improved nationally. All three major components to the
index - incomes, interest rates and prices, moved in the right direction. The median Australian dwelling price was $473,000, which required a monthly
mortgage repayment of $2,955 and a qualifying household income of $118,200.
The average weekly wage for a full-time employed person late last year was
$69,200. It takes 1.8 full-time wages to buy the "typical" home down under. The lowest affordability multiple - how many full-time wages it takes to buy
the average home - is in Tasmania (1.5); followed closely by Western
Australia (1.5) and the regional areas across New South Wales (1.6),
Queensland and South Australia (both 1.7). Brisbane now, too, has a 1.7
affordability multiple (try saying that three times and quickly).
Victoria's remains at 1.8 and it still takes two full-time wages to buy the
average home in Sydney. History shows that when this measure remains below 1.7 for over twelve
months, then sales improve and in due course, prices too. As we wrote last Saturday, fingers crossed. 3. And more NRAS too Our NRAS article from late last year has been our second most popular post
so far. Those who have joined the twitter ranks will know that I gave a
presentation regarding NRAS during the week on behalf of the Brisbane
Housing Company. I made some points which I think are worth repeating here: NRAS does not make a poor property a good one Beware, as some operators are
marking up NRAS products Buy good investment property first, treat NRAS as a
bonus Apparently, just short of 40,000 NRAS incentives have been approved
across the country with just 5,400 so far used and 34,600 waiting
allocation. A further 10,000 are waiting in the wings, so to speak. Across Australia, three out of five NRAS allocations have been used for
apartments, with another 20% each going to detached houses and townhouses. Queensland has received 28% of the total NRAS incentives approved to date,
with 11,300. Just 13% or 1,450 have been used. Two out of five (39%)
Queensland allocations have gone to apartments, another 38% to detached
houses and 23% to townhouses. When it comes to product types, studio apartments got just 3% of
Queensland's NRAS allocations. One-bedroom product got 18%; two-bedders
26%; three-bedroom dwellings 37% and four-bedroom stock 16%. Enjoy your weekend, and remember.. pass this onto others, you have the time,
it is Saturday after all. Follow me, too, on twitter and LinkedIn. unquote Best regards
Linda J. Debello
L J Gilland Real Estate Pty Ltd
http://www.ljgrealestate.com.au
PO Box 19, Zillmere 4034.
Office:- 07 3263 6085
Mobile:- 0409995578 Confidential Email:- The information in this message is intended for the
recipient named on this email. If you are not that recipient, please do not
read, copy, distribute or act upon the message as the information it
contains may be priveleged. If you have received this message in error,
please notify us immediately by return email. Thank you for your
co-operation.
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