Dear Valued Friend and Associate,
More than 150 postcodes across Queensland have recorded gross
rental yields of 5 per cent or more, according to the latest Real Estate
Institute of Queensland (REIQ) data.
The REIQ December quarter gross rental yield report, released
today, found that yields were particularly firm in mining regions as well as
areas which offered affordable housing.
Our property market has turned a corner over the past six months,
and these robust yields reflect that sales prices had yet to fully rebound in
the December quarter last year but rents had definitely increased.
This year, there continues to be strong demand for rental
properties from tenants which in turn is driving activity from investors.
REIQ analysis of Australian Bureau of Statistics (ABS) housing
finance data found that the number of investors in the Queensland property
market in February had increased more than 10 per cent compared to January this
year.
The top three performers for gross rental yields for houses by
postcode were Miles at 9.3 per cent, Russell and Macleay islands with 9 per
cent, and Mount Morgan on 8.7 per cent.
At number one, Miles is located in the Western Downs region and is
set amongst the rapidly expanding Surat Basin Energy Province. Its location
means that the region has experienced significant property price growth and
increased rents over the past few years.
At number two was the Brisbane bay islands of Russell and Macleay
which boast plenty of affordable houses as well as a healthy rental market.
Number three was Mount Morgan, in the Rockhampton local government
area, which regularly features on top yield reports due to its affordable
property prices.
When it comes to units and townhouses, the top areas generally have
affordable buy-in prices to underpin their yield performances.
Two postcodes tied for the number one position. The postcode that
includes Holloways Beach and Yorkeys Knob in Cairns recorded a gross rental
yield of 8.2 per cent. This result can partly be attributed to the period of
subdued unit prices following Cyclone Yasi in 2011.
Equal number one was Chinchilla, which is another location within
the Western Downs region. Similar to Miles, Chinchilla has experienced strong
sales demand as well as rental growth over recent years due to the booming
resources sector.
In the number two and three spots were both postcodes within the
Logan City region of Greater Brisbane. Woodridge posted a gross rental yield of
7.8 per cent, while Slacks Creek recorded a yield of 7.7 per cent. Both of
these postcodes have affordable property prices but are home to a large rental
population.
The top performing postcode for Brisbane was again Brisbane/Spring
Hill with a yield of 6.4 per cent due to the strong concentration of renters in
this inner-city region.
The REIQ gross rental yields use weighted median rents and sale
prices to derive yields, which is the annual income earned from a tenanted
property divided by the purchase price.
They are referred to as gross yields as they do not take into
account costs associated with the original purchase or the ongoing costs of
owning an investment property such as mortgage repayments.
Our gross rental yields are also classed as short-term yields as
they reflect current pricings.
However, if you hold your investment property over the long-term -
which of course is always advisable - then the yield improves given rental
income has increased but your original purchase price had stayed the same.
Choose an Agent that is interested in the relationship of everyone
involved and takes into account what’s best for all parties not just
earning a commission.
Your Managing Agent will always have a
relationship already formed with your Tenant which makes it so much easier to
sell your Investment Property with a Tenant in place.
It makes sense that keeping a Tenant in place on a fixed
term lease ensures that the property is still income producing and if
your Agent knows the market well, then the rental return should look attractive
to a Prospective Purchaser.
In my experience most Agents will recommend that
the Tenant be evicted and the property left vacant whilst on the market.
This is poor advice as there is no income generated on the property
whilst on the market for sale, and it will not look appealing to Prospective
Investors.
Choose LJ Gilland Real Estate to sell your
Tenanted property. If your property is managed by another Agent and you
want to sell, transfer to LJ Gilland Real Estate and we will remove the hassle
from sales and rentals aiming at the best result possible in any challenging
real estate market, whilst making selling a sweet, smooth and nurturing
experience for all involved.
Thinking of selling? If you would like a current Market Appraisal
contact us now.
Looking forward to hearing from
you.
Best regards,
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Phone: (07) 3263
6085
Fax: (07) 3263
5985
Mob: 0400 833 800
Mob2: 0409 995 578
LJGillandRealEstatePtyLtd
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Blog: Linda
Post: RP Data Rental Market Analysis
Link: http://ljgilland.blogspot.com/2013/01/rp-data-rental-market-analysis.html
http://reiqblog.com/wp-content/uploads/2013/04/REIQ-Gross-Rental-Yields-Dec-qtr-2012.xls
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