Category: News

Majority of investors make sacrifices to buy property

Latest news: 74% of Aussies think rentvesting is a good strategy Unprecedented investment is pouring into Hobart Auctions rise to highest level since June The majority of Australian investors (71%) had to make sacrifices to their lifestyle in order to afford property, according to Mortgage Choice’s latest Investor Survey.
“This is the third year in a row that we have seen a rise in the proportion of Australian investors saying they have been forced to make lifestyle sacrifices in order to buy property,” said John Flavell, CEO of Mortgage Choice.
“In 2016, 69.4% of investors said they made lifestyle sacrifices in order to afford their investment property, while in 2015, 68.1% of investors said they did the same. Of course, when you consider that most property markets have seen a jump in property values over the last few years, I am not surprised to see that more and more investors are having to sacrifice elements of their lifestyle in order to make their property purchasing goals a rea..

Read More

74% of Aussies think rentvesting is a good strategy

Latest news: Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Auctions rise to highest level since June Seventy-four percent of people now think rentvesting is a good strategy for those struggling to enter the property market, according to non-bank lender State Custodians Home Loans.
The survey – which polled 1,006 people nationwide – found that 33% of all respondents across all age groups say they’re in favour of rentvesting, as it allows people to build equity and live where they want instead of living in mortgaged houses in areas they’re not keen on.
Thirty-one percent of respondents say the strategy allows people to get into the property market sooner, and 29% say it’s a good way of providing investors with dual income streams: one from tenants and the other from tax benefits.
Rentvesting is particularly appealing to young adults. Twenty-five percent of Gen Y respondents (who’re struggling the most to buy homes) approve of rentve..

Read More

Unprecedented investment is pouring into Hobart

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Auctions rise to highest level since June Tasmania’s tourism boom has triggered an unprecedented surge in activity from international developers, and many are ditching mainland Australia for the relatively untapped shores of Hobart.
The city’s growth has been twofold: First, there is the surge in hotels planned for the city’s millions of domestic and international visitors, and second, developers have been pushing for the construction of more residential projects.
Tasmania had more than 1.24 million visitors during the 2016 calendar year, up 7% from 1.15 million in 2015, according to Tourism Tasmania.
Scott Newton, CEO of Knight Frank Tasmania, said the current demand for Hobart development sites was at an all-time high. “Hobart has generally lagged the national market but we’re certainly seeing change unfold and there’s been a catch-up [taking place],” he said.
This ..

Read More

Auctions rise to highest level since June

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Across the combined capitals this week, the number of homes taken to auction rose to 2,011, according to CoreLogic. This was the largest number of auctions held since the final week of June 2017, and approximately one-third higher compared with the same week a year ago.
“The preliminary auction clearance rate of 70.5 per cent has increased relative to last week’s final clearance rate [where 1,857 homes were taken to auction], up from 68.2 per cent,” said Jade Harling and Kevin Brogan, analysts at CoreLogic. “However as more results are collected it is expected that the final auction clearance rate will [be] revised lower to remain within the high 60 per cent range where it has tracked since the first week of June.”
Over the corresponding week in 2016, the clearance rate was 75%, and 1,471 auctions were held. In Sydney, th..

Read More
footer(1)

WANTED: Australia’s top property investors

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Your Investment Property is once again looking for Australia’s top investment stories of the year for its 10th annual Investor of the Year Awards.
This year there are three award categories open to entry, these are:
• New Investor of the Year – Someone who has been investing for 5 years or less and is at the beginning of their investment journey
• Reno Investor of the Year – Someone who uses renovation as their primary strategy for generating profit from property
• Strategic Investor of the Year – Someone who has been investing for more than 5 years, using a proven strategy that has built their wealth
Your Investment Property readers who meet the criteria for any of the three categories and can demonstrate a strong record of building wealth through property are encouraged to submit an entry online. The winners in all of t..

Read More

Offshore private investors snap up office assets

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Offshore private investors, many from Asia, have been snapping up office assets in Australia at a faster pace over the past year. Many are looking for strong yields in a country they view as a relatively safe haven, according to Colliers International.
The volume of office stock purchased by offshore private entities surged 59% to $2.09bn in fiscal 2017, according to Colliers International’s latest capital markets review. Of this, $1.05bn of office investment came from mainland China. Meanwhile, investment from Hong Kong and Singapore surged to $906m in 2017, from just $73m a year earlier.
The wave of investments is due to the search for yields and the growing perception internationally that Australian offices are a “safe haven” investment, according to Anneke Thompson, national director of research at Colliers Internatio..

Read More

Homes selling for $1m reach record highs

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart The cost of housing has risen in most parts of the country over the past 12 months, pushing the proportion of homes selling for at least one million dollars to new record highs, according to Cameron Kusher, head of research at CoreLogic.
“Bracket creep should come as no surprise in markets like Sydney and Melbourne where dwelling values have increased by 77% and 61% respectively over the past five years,” Kusher said. “While the rise in housing values has been most pronounced in Sydney and Melbourne, most other capital cities and regional areas have also seen a proportional lift in home sales over the million dollar mark.”
Over the 12 months to June 2017, 15.4% of all house sales and 8.8% of all unit sales nationally were at a price that touched at least $1m. By comparison, 12 months prior, 14.4% of all house sales and 7..

Read More

Foreign investors are eyeing luxury Aussie real estate

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart The appreciating Australian dollar and new taxes have not deterred foreign investors from snapping up prime residential real estate in Australia, particularly in Sydney and Melbourne, according to Knight Frank’s Prime Global Cities Index Q2 2017.
While the housing affordability crisis has locked out more than half of Australia’s population from the property market, the local and international one percent are happy to snap up prime luxury properties (which represent the top 5% of the housing market) in Sydney and Melbourne.
Michelle Ciesielski, director of residential research at Knight Frank Australia, said that despite the appreciation of the Australian dollar at the end of July, conditions are still favourable and many expats are securing their ideal home for a future return to Australia.
“Foreign interest in prime Aus..

Read More

Mirvac to launch Oz’s first build-to-rent apartments

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Mirvac Group is preparing to launch Australia’s first major build-to-rent apartment vehicle with the backing of major superannuation funds, according to a new report from The Australian.
The real estate group has earmarked a potential site in Sydney as it looks to draw institutional investors into a business that could ease stress in overpriced housing markets. Mirvac plans to build and hold units in capital cities supported by major superannuation funds with returns derived from rentals paid by residents.
“Mirvac believes that the time has come for an institutional build-to-rent sector in Australia to provide better certainty and quality to tenants,” said Susan Lloyd-Hurwitz, CEO and managing director of Mirvac Group.
The sector has grown in size in the United States and it’s hoped it would find success in Australia too…

Read More

Underquoting is hampering real estate buyers

Latest news: 74% of Aussies think rentvesting is a good strategy Majority of investors make sacrifices to buy property Unprecedented investment is pouring into Hobart Many buyers of real estate are misjudging the true market value of properties because they rely on conservative and sometimes irrelevant comparable sales information supplied by agents, experts say.
The problem is especially prevalent among first-home buyers and young people trying to purchase entry-level properties at Melbourne auctions.
Consumer Affairs Victoria has been cracking down on agent underquoting following the introduction of new laws aimed at stamping out the practice.
A key plank of the reforms is that agents are required to provide prospective buyers with the details of three recent comparable sales of similar properties in a statement of information.
However, market watchers say there’s still a lack of uniformity in the way houses and units are being quoted, with some agents featuring “not so relevant comp..

Read More