Whether you’re a renter, owner-occupier or investor, property is very costly. Interest rates, which were kept on hold on Tuesday (7 May), are just one factor. The systemic undersupply of homes to buy and rent is the major contributor to unaffordability. Another cost which has recently been elevated in the public conscious is strata management. Ever since an ABC News report revealing the alleged unethical practices of a particular strata management company, many strata managers have contacted REINSW expressing their concerns. They want to ensure they are performing all their responsibiliti ..read more

The WA State Budget has delivered some relief to first home buyers with an increase to the stamp duty concession threshold. As part of the 2024-25 State Budget, the Cook Government will increase the first home buyers transfer duty concession threshold for established homes from $530,000 to $600,000, and the exemption threshold from $430,000 to $450,000. The reforms will provide total savings of up to $15,390 and benefit almost 5,000 first home buyers each year, as part of a $1.1 billion housing and homelessness package. Under the new system a first home buyer purchasing a $450,000 property wil ..read more

The pace of growth in Brisbane’s property market seems to be slowing down, evidenced by changes in median dwelling values. In April, the monthly growth for Brisbane dwellings fell below 1 per cent, marking the first time this has happened in the last 12 months. An analysis of dwelling value data reveals a clear trend, showing a divergence between the performance of the housing and unit markets in Brisbane. Price segmentation data also suggests that affordability pressures may be affecting the pace of growth across various segments within the Brisbane property market. This slowdown isn’t surpri ..read more

The Australian Taxation Office (ATO) has identified three common errors it will be targeting as tax time approaches, and landlords’ ears should be burning. Inflated claims for rental properties are in the ATO’s crosshairs, as the tax collector bristles at data showing 90 per cent of rental property owners are getting their income tax returns wrong. ATO Assistant Commissioner Rob Thomson said rental properties, work-related expenses, and a failure to declare income were the priorities being put under the microscope in 2024. “We often see landlords making mistakes when it comes to repairs and ma ..read more

After the weekend real estate auctions, we often hear media and real estate sales agents spruiking clearance rates in the capital cities. This is because in the dynamic landscape of the Australian real estate markets, metrics such as clearance rates and days on market serve as vital indicators, offering insights into the health and trajectory of property markets. Property investors should educate themselves and be aware of these metrics when buying in any market but take caution as these metrics can be unreliable. Clearance rates versus days on market Clearance rates refer to the percentage of ..read more

For investors looking for rent price growth and yield, units as a collective group of property types generally outperform houses.   Year to March 2024 Year to March 2023 Year to March 2019 Property type Houses Units Houses Units Houses Units Median sale price $625,000 $425,000 $550,000 $400,000 $497,000 $393,000 Median rent price $600 $550 $520 $450 $360 $325 Yield 5.0% 6.7% 4.9% 5.9% 3.8% 4.3% However, the unit market can be broken down into four main types: villas, townhouses, units and apartments (see definitions of property types here) and the returns vary across the cat ..read more

Signs that the pace of rent growth was slowing have gone out the window. From outer suburban price squeezes to high income families driven into the rental market through housing unaffordability, there’s little respite at either end of the market. The median weekly rent value across all Australian dwellings has hit a fresh record high of $627 per week, and rental costs range from $770 per week in Sydney, to $547 in Hobart. Rent price growth re-accelerated most strongly in greater capital city areas within 30-40km of city centres. At the same time, higher income households are far more prevalent ..read more

Prospective buyers will often refer to the council valuation when setting a bidding limit for a property auction, but this is not a reliable indicator for likely price. In fact, I’ve seen remorseful bidders regretting their price-setting methodology when they’ve watched the bidding (and reserve) sail past their council rates valuation figure. In the vast majority of cases, properties sell for a far greater figure than the council rates notice amount. So, why does this occur? And why is there such a discrepancy between bank valuations and council valuations? In Victoria, for example, rates noti ..read more

Demonising Melbourne for the fact it has delivered the least price growth of all capitals since Covid - just 11 per cent compared to top performer Adelaide with 57, is an opportunity waiting to happen, say local real estate experts. In a case of slow and steady wins the race, Melbourne’s property commentators are confident that despite interest rate uncertainty and state-imposed taxes stagnating the market, investors who get in now will ride the wave of a rebound in the next couple of years. NSW-based property buyer Kate Hill, of Adviseable, said too many investors were piling into Perth when ..read more

Australia’s property market is becoming increasingly two-speed, with Perth, Adelaide and Brisbane recording strong monthly property price rises while other cities are seeing more modest gains. In Melbourne’s case, the latest CoreLogic Hedonic Home Value Index has median dwelling values going backwards (-0.1 per cent), compared to Perth’s huge 2.0 per cent monthly gain. April’s national 0.6 per cent increase takes the current growth cycle into its 15th month, with housing values up 11.1 per cent, or approximately $78,000 since the trough in January last year. The pace of gains was on a par with ..read more