Categories
NSW Qld Vic

PROPERTY EXPERTS REVEAL WHERE TO INVEST IN 2021

Despite all the pandemic-induced drama, 2020 turned out to be a pretty stable year for property prices in Australia. Most experts believe that this new year will shape up to be stellar for real estate. Property Investment Professionals of Australia (PIPA) chairman reinforced that 2021 will be a much better year than 2020, especially for the residential market, as capital cities are expected to see a higher rate of value increases.

Furthermore, historically low interest rate and pent up transactional energy are likely to provide a boost to the property market early in 2021, as this will continue to push the prices on established residential properties up.

If Australia succeeds to keep COVID contained in 2021, the property market will look to be a promising year, especially on the back of record low interest rates and positive sentiments, Property investors Council of Australia’s chairman Ben Kingsley.
Here are where the experts are highly recommending to invest in 2021:

Lifestyle Towns

Regional and lifestyle property markets have shown some very strong results. Demand has been outstripping supply by some margin and this has resulted in short marketing periods, properties sold prior to auction as well as some very strong auction results. Locations such as the Sunshine Coast and Adelaide Hills are stands outs with the advantages of rural lifestyle and good value attracting buyers.
CoreLogic’s “Best of the Best” report revealed Sunshine Beach, a suburb of Noosa in Queensland, had the best performing house prices over the past 12 months.

In just one year Sunshine Beach’s house prices rose by an eye-watering 27.6 per cent, the largest capital gain in one year of any suburb in the country.

CoreLogic’s Head of Research Australia, Eliza Owen said “Sunshine Beach on the Sunshine Coast has seen the highest annual capital growth in houses nationally, compared with 2019 when St Kilda in Melbourne saw the highest housing growth.”

Regional Victoria

Areas such as Geelong, Ballarat and Bendigo are likely hotspots due to affordability and lifestyle factors. Despite the ongoing pandemic, regional Victoria house prices increased by 5.5 per cent. CoreLogic research director, Tim Lawless said the hottest markets were only a few hours drive from major capital cities, such as Geelong, Ballarat, Sunshine Coast, Newcastle, Wollongong and Daylesford. “They are leading the pack in terms of the strongest growth”.
“People can have the best of both worlds and live in a marketplace with lifestyle benefits and lower prices, as well commute back to big cities if they need to,” Mr Lawless said.

Greater Byron Region

As mentioned in our last email, the Greater Byron Region is set to boom in 2021. Increases in buyer’s demand were across the Greater Byron Region in locations such as East Ballina (185%), Lennox Head (150%) and Bangalow (145%).

Categories
Vic

PANDEMIC FEARS HAVEN’T SHAKEN BALLARAT HOUSING MARKET

DESPITE THE MYRIAD OF SOCIAL AND ECONOMIC CHANGES THAT HAS OCCURRED THROUGHOUT THE PANDEMIC, BALLARAT’S HOUSING MARKET CONTINUES TO STAND STRONG.

WHETHER PEOPLE ARE INVESTING IN THE REGION BECAUSE OF THE LIFESTYLE, HOUSING AFFORDABILITY OR JOB RE-LOCATION, INDUSTRY PROFESSIONALS HAVE BEEN NOTICING THE AREA’S CONSISTENT GROWTH FOR YEARS.

According to industry figures, Ballarat’s house prices rose by 9.7 per cent to a median of $395,000 just last year and jumped 38.6 per cent over five years.

One Agency director Shani Stevens said that due to COVID-19, the supply shortage of houses on the market is keeping rates up and continuing the economic growth in the sector.

“It’s a real seller’s market at the moment because there’s a lot of demand,” she said.

“People don’t want to make any life changing decisions right now which has slowed the supply and kept the prices up.

“The COVID crisis is playing into the hands of regional Victoria in a way because the idea of working remotely has gone from a fantasy to a reality.”

The forecast completion of the GovHub for early 2021 which is set to bring 600 jobs from metropolitan areas to Ballarat is a factor for the rise in inquiries from Melbourne buyers.

Not only does this demand hold prices up, but Ms Stevens said large scale commercial projects like this are a great way to decentralise workers into regional areas.

“There is still a really good level of inquiry and a lot of it is coming from out of town,” she said.

“The GovHub will be a really good model for other large businesses that can work in a decentralised model and come to a regionalised setting.

“They save so much money and if they don’t have to pay those exorbitant CBD rates, why would they?”

Although property prices have stayed stable throughout the pandemic and are looking to continue that way in the future, some industry professionals have noted that buying behaviour has changed.

Harcourt’s real estate agent Tim Menz said although the prices are stable, housing supply is the driest he has seen it over the last decade.

“Because of COVID, some people are sitting on their hands and others might even be worried about putting their house up for sale and having strangers look through their home,” he said.

“Normally 40 per cent of sales would be to investors and currently it’s at 10 per cent so it seems like they’ve disappeared out of the market.

“Although it’s a little bit different right now the housing market in Ballarat is still strong.”

Rumours of a market crash have been circulating since the beginning of the pandemic and as we enter the second round of stage three restrictions, some experts are bracing for the fall.

Domain economist Trent Wiltshire said regional areas within a couple of hours of Melbourne will face a softer market over the next year as prices moderate in metropolitan areas.

“What happens in Melbourne will likely affect regional towns,” Mr Wiltshire said. “The downturn spreads outwards.”

However, some industry professionals a little closer to home are disregarding the possibility of a dramatic downturn here in Ballarat.

Mr Menz said that although we might experience a little dip in the market, it won’t have a huge impact when people decide to resell.

“It’s going to have to depend on what happens to the wider economy, there’s been people saying there’s going to be a housing crash for the last 10 years and it hasn’t happened,” he said.

“No-one knows but at this point in time the housing industry in Ballarat is as strong as it’s ever been.”

Although the future of the industry remains unclear, director at Ray White Ballarat, Phillip Lee, is one of many experienced professionals looking forward with optimism.

Mr Lee said as we re-enter stage three lockdown, there’s no reason for us to expect to see prices spiral.

“The median for the June quarter showed Ballarat went up nearly one per cent during the period of stage three restrictions,” he said.

“It’s still business as usual, a strong market and the only thing that has really changed is the way we conduct open houses.

“There’s no reason to see it being any different to last time except for maybe the limitations on Melbourne buyers coming to Ballarat but we don’t know much about yet.”

With the help of the first homeowners and builders grants, some buyers are finding buying a property more attainable than ever before.

Right now, if you’re in a position to buy or sell, Mr Lee said that waiting for a change in the market is never the answer.

“Don’t try to time it because I’ve seen people wait for a crash and pay more months later,” he said.

“You can get home loans for just over two per cent, so it’s a good time to buy from an interest rate point of view.

“IF YOU LOOK AT THE BALLARAT PROPERTIES OVER THE LAST 20 TO 30 YEARS, IT’S A VERY RESILIENT AND STABLE MARKET AND WHETHER IT’S NOW OR LATER, IT’S ALWAYS A GOOD PLACE TO INVEST.”

WRITTEN BY RUBY STALEY –  TIMES NEW GROUP BALLARAT

Categories
NSW

PORT MACQUARIE HAS BEEN OFFICIALLY NAMED THE MOST SEARCHED UPON REGION IN AUSTRALIA

PORT MACQUARIE HAS BEEN OFFICIALLY NAMED THE MOST SEARCHED UPON REGION IN AUSTRALIA.  CLICK HERE TO VIEW.

PORT, AS THE LOCALS CALL IT, HAS BEEN THE FASTEST GROWING REGION IN NSW FOR QUITE SOME TIME AND THIS DOESN’T LOOK LIKE SLOWING DOWN ANYTIME SOON.

Hundreds of families are buying up big in the state’s best regional towns every year in a bid toescape city life.Cheaper houses, proximity to nature and beaches aswell as just friendly country people are sending Sydneysiders out into NSW‘s regional enclaves, with social researchers predicting a further surge in seachangers off the back of more people working from home during the coronavirus pandemic.Port Macquarie was the most popular town in NSW forpeople to move to, with 1418 people moving there between 2018 and last year, according to the latest Australian Bureau of Statistics data.

Port Macquarie Laing and Simmons real estate agent Chris Koch said he could not find enoughhouses to sell to willing Sydneysiders.“We have mountains, we have beaches, we have a river, we have good water supply, our health system is pretty good and our climate is pretty nice — and the prices are reasonably good at the moment,” he said.“We’re in a fortunate position where our (housing) market is holding up and we have heaps of buyers and not enough property to sell.

Port Macquarie boasts stunning coastal views. He said the median house price in Port Macquarie was $580,000 but prices increased to get properties closer to the beach to upwards of a million dollars. Retirees chasing the peaceful coastal life are also fuelling the trend.“We have people who are now working from home and saying, ‘stuff this, I don’t have to live in Sydney I can have a Zoom meeting in Port Macquarie’.”Michelle Kyan moved with her four children and husband Francis in April last year to Port Macquarie from the northwest Sydney suburb of Glenhaven.“We wanted a better balance between work and leisure and that wasn’t really happening in Sydney,” she said. They reduced the size of their mortgage and now live within five minutes of the beach and can spend more time with their four children rather than commuting to work.

Michelle and Francis Kyan with their four kids Adele 4, Elijah 10, Ava 13, Xavier 16 onLighthouse Beach in Port Macquarie. Pic: Lindsay Moller Production

Categories
Property Information

THE HOMEBUILDER GRANT IS EXTENDED

As recently announced, The HomeBuilder Grant will be extended to 31 March 2021.

Changes to the HomeBuilder Grant include:

  • A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
  • An extended deadline for all applications to be submitted, including those applying for the $25, 000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
  • An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
  • An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
    • The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
    A change in licensing requirements and registration for builders and developers, as below
    • Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.  
    • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.

We have numerous property packages available now that are eligible for the HomeBuilder extension situated in high capital growth locations for a limited time only! Get in touch with us now to learn more!

For more info or questions in regards to the HomeBuilder Extension, feel free to ask us any question through julian@prpty360.com.au or anthony@prpty360.com.au. 
 
Categories
Qld

SUNSHINE COAST HAS BEEN ONE OF THE BEST PERFORMING PROPERTY MARKET IN AUSTRALIA

“The Sunshine Coast’s rental market is seeing huge demand mainly due to shortage of stock”

The Sunshine Coast is emerging as one of Queensland’s strongest residential property markets, outpacing both Brisbane and Gold Coast as an influx of sea-changers to the region bolsters house prices.

The Sunshine Coast has recorded consistent dwelling price growth for both houses and units, while simultaneously, population growth in the region is at its highest level in almost a decade, CBRE research shows.

The Sunshine Coast’s median house price increased by 3.8 per cent to $622,500 in the year to June 2020, and its median unit price recorded 2.4 per cent growth to $420,000.

CBRE notes that the annual rates of growth were higher than the Gold Coast—3.1 per cent and 1.7 per cent respectively—and the Greater Brisbane area, which grew 1.3 per cent and 1.7 per cent respectively.

Key hotspots across the Sunshine Coast and Gold Coast have seen price hikes of up to 25 per cent, fuelled by low interest rates and the promise of a laidback lifestyle free of pandemic pain.
Domain senior research analyst Nicola Powell said buyers were increasingly being attracted by south-east Queensland’s affordability and lifestyle and this was likely to be accelerated by the current health crisis.

Investors in the Sunshine Coast property market are still active with market sentiment having improved which has in turn instilled confidence in the marketplace. The main driver of this sentiment is the Sunshine Coast lifestyle and the major infrastructure projects across the Coast. With interest rates at an all-time low, investors are looking to property as a way or increasing their returns. Across the Coast, gross yields normally tend to range between four and 15 per cent which reflects the relative risk on investment.

Standard dwellings on the coast typically show a return of four to five per cent which is primarily driven by first time investors. We have seen an increase in interstate investors throughout the Sunshine Coast who have been purchasing and constructing dual occupancy style properties which generally provide a higher yield of up to 6.5 per cent. Slightly higher yields can also be achieved through the hinterland townships with properties comprising three to five flats achieving yields in the seven to eight per cent range. Typically these properties are older with ongoing maintenance and additional management fees required.

Internal migration for the Sunshine Coast is 20% higher than any other SEQ region and while the raw number is about 1,000 than the Gold Coast, the Sunshine Coast is half the size of the Gold Coast and so, in effect, is experiencing double the growth rate.

The Sunshine Coast has more immediate household demand in raw number than Moreton Bay, Ipswich and Logan, plus the Sunshine Coast’s current undersupply rate and supply constraints are the greatest in SEQ.
Migrants to this region are highly employable and have a better financial position with the majority coming from the UK, South Africa and Canada. High net-worth relocators from New Zealand continue to increase in number, however as their visa requirements are different, they aren’t included in the above numbers.

In essence the Sunshine Coast has:

  • More people needing houses TODAY
  • Less ability to supply those houses
  • People coming who desire smaller households, increasing the demand for smaller product
  • More jobs to attract those people
  • Better economic circumstances (more affordability) of those coming
So, when it comes to people, the Sunshine Coast is getting more, wanting more housing, with more affordability than the rest of SEQ (raw numbers or per capita rate). This is where the opportunity is at. This is where the future is at.
Categories
NSW

NEWCASTLE PROPERTY MARKET LIKELY TO SEE CONTINUED GROWTH

Newcastle property market likely to see continued growth

The Hunter region continued to see buzzing activity in the local property market, according to the latest Herron Todd White (HTW) residential report.

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

The report notes even with the uncertainty of an interest rates move, there was still plenty of activity around the region for both established houses and also people wanting to purchase a block of land to build their dream home.

“NEWCASTLE IS HOPING TO SEE MARKET CONDITIONS IMPROVE FURTHER DUE TO THE RISING POPULATION OF THE CITY, SURROUNDING AREAS AND ALSO MAITLAND AND HUNTER VALLEY REGIONS FUELLING HOUSING DEMAND AND RELATIVELY HEALTHY HOUSING AFFORDABILITY.

“THE NEWCASTLE AND HUNTER REGION IS HIGHLY LIKELY TO SEE CONTINUED GROWTH DUE TO CLOSE PROXIMITY TO MAJOR CAPITAL CITIES SUCH AS SYDNEY. AS HOUSING AFFORDABILITY BECOMES A RESURGENT ISSUE IN 2020, CAPITAL CITY RESIDENTS MAY ONCE AGAIN SEEK RELATIVELY AFFORDABLE HOUSING IN NEARBY REGIONS OR REGIONAL AREAS WITH HIGH LEVELS OF AMENITY,” THE VALUATION FIRM SAID.

In terms of residential property, Newcastle has become its own market and no longer relies on Sydney as it once did.

“In the past 12 months, Newcastle saw a shift in confidence independently of Sydney; we no longer follow suit like we once did. Locally, since the federal election, we have seen an increase in activity from all classes of potential property purchasers,” the valuation firm said.

There is still a healthy supply of inner city units for sale and with further developments around Hunter and King Streets in Newcastle and also Honeysuckle continuing into the future, perpetuates the old saying of “as long as people buy, they will continue to build them”, the report noted.

“Savvy property investors are still seeing Newcastle and supporting areas as a great place to invest due to affordability and also strong growth potential,” the valuation firm said.

These investors will be ready to pounce on the best performing pockets which include properties in the Kotara, Islington, Hamilton, Charlestown and Mayfield areas, all located within a 15 minute drive of the Newcastle CBD.

“First home buyers in the region are also continuing to purchase established dwellings around the fringes of the city suburbs and also showing keen interest in house and land packages around the Maitland areas of Chisholm, Thornton and Bolwarra, which are all less than a 40 minutes drive into Newcastle city,” the valuation firm said.

The trendy inner city suburb of Tighes Hill also saw a record sale price for the year at the end of February of $1.5 million for a waterfront Throsby Creek, Sparke Street property (pictured below).

The largest sale in the affluent suburb of Merewether for the month of February was 68 Curry Street (pictured below) which sold for just under the $2 million mark at $1.98 million, the report noted. 

Categories
Qld

BRISBANE PROPERTY MARKET UPDATE

RECENTLY, THERE HAS SEEN A HUGE TURNAROUND IN BUYER SENTIMENT IN BRISBANE. IT SEEMS THAT EVEN MORE BUYERS HAVE ENTERED THE MARKET IN THE LAST MONTH, AND THIS IS CONTRIBUTING TO THE VERY HIGH DEMAND THAT IS EVIDENT AROUND THE CITY.

Last month, we reported that Westpac Bank updated its property forecasts, with Brisbane prices tipped to surge 20 per cent between 2022 and 2023. Since then, consumer confidence has surged, returning to an eight-month high. It is well known that consumer confidence is a key driver for housing markets across Australia. With the announcement of further rates cuts, we may now see a further surge in housing market activity.

The Domain Buyer Demand Indicator has shown that houses remain a firm favourite for prospective home hunters, with demand rising post-lockdown in Brisbane, and it remains significantly elevated compared with last year. Unit demand has been sliding since late May although it also remains slightly higher than last year, with investment grade stock likely to be impacted most.  

At the moment, the Brisbane real estate market is moving at different speeds. We have the housing market, and the high-end unit market (as a small segment of the unit market as a whole) that are incredibly strong, but the inner-city one- and two-bedroom standard apartment markets are suffering. It is unlikely that we will see a recovery until borders open and international students return. 

In the Brisbane Housing Market, we saw median values for the greater Brisbane region increase 0.6 per cent across the month of September 2020. The current median value for a Brisbane house is now $564,531.  Combined with last month’s house price results for Brisbane, this is a 1 per cent increase across the last two months. On a $500,000 property, this means it will cost a buyer $5,000 more to buy, and on a $1,000,000 property it is now $10,000 more to buy in the same area than it was two months ago.

Brisbane rental market movements

The vacancy rate in Brisbane as a whole fell again from 2.1 per cent at the end of August to 2.0 per cent at the end of September. There are still many areas in Greater Brisbane where vacancy rates are extremely low. The table below highlights where vacancy rates across Brisbane sit at the end of September 2020.

What are we seeing on the ground across Brisbane?

The number of people out at open homes every Saturday has continued to grow throughout October. With listing volumes still lower than 12 months ago, there is fierce competition for quality properties throughout Brisbane.

Demand is very strong. I would argue the strongest that we have seen in more than a decade. There are many reasons for this.

The most recent Herron Todd White Residential Month in Review, it states:

“Money has never been cheaper, and for those with the ability to access it, the opportunity is obvious.” 

An example of a recent auction in Brisbane was the property at 20 Sturt Street Kedron. This was vacant land in Kedron, which is 11km to the north of the Brisbane CBD. There were 39 registered bidders and the vacant 607 sq m block sold for $1,155,000.

From our own “on the ground” experience, we can say that there is not a single property that we have been able to buy that has been listed on the market, that has not been a multiple offer situation after the first open home. Every property we have considered for our client has had high competition.

We are now also seeing properties sell outside of our appraisal range based on previous comparable sales in the area. This shows how strong the current market is, with properties selling between 5 and 10 per cent over the highest end of our appraisal range. This is critical for buyers to understand, otherwise they will simply keep missing out.

There is still off-market activity, and this is generally less competitive. Obviously, this is one advantage of working with professional buyer’s agents who have an extensive agent network.

There is less fear in Brisbane now about property prices falling, so purchasers are eager to act. Interstate migration is also boosting sales, with property buyers looking to secure a home before relocating to Brisbane. There is a sense of anticipation building in Brisbane that we will see high volumes of interstate arrivals once the borders reopen for everyone. Given the changes that COVID-19 has had on all of us, many people are seeking a great lifestyle, which Brisbane provides, while having the ability to work more remotely. 

The dominant buyer group is still the owner-occupier in Brisbane, although we have definitely seen investor activity start to rapidly pick up again. Lending has spiked and owner-occupier lending is now at historical highs, excluding refinancing. First home buyer numbers are up 70 per cent year-on-year in Queensland, according to the most recent ABS lending data. Investor lending also rose 5 per cent in September, but it remains low overall. 

What does the future of Brisbane looking like?

The future for the Brisbane housing market looks very bright. We expect the current price growth to continue given the sheer number of buyers currently in the market ready to buy. With tight vacancy rates throughout most areas in Greater Brisbane, we also see great investment opportunities for those who have been sitting on the sidelines waiting for the worst of the pandemic to pass.

The high-density unit market is still subject to further headwinds – especially in the inner city. With elevated vacancy rates, investors without a tenant in place will certainly feel the impact on their returns. Also with downward pressure on prices, the immediate future looks bleak.

Queensland now has a re-elected Labor government, so there is more certainty than this time last month when we were still in the lead-up to our state election. With the promise of jobs, and more jobs, let’s hope they get it right! With an improving economy, together with the creation of more jobs in the months ahead, this will have further positive effects on the Brisbane market.

Article written by Melinda Jennison – Smart Property Investments

 

Categories
NSW Property Information

NSW ABOLISHES STAMP DUTY FOR HOMES UNDER $800K

The NSW state government has abolished stamp duty for new homes under $800,000, in a bid to support first home buyers and the construction industry.

Premier Gladys Berejiklian has announced that the government will temporarily axe stamp duty on newly built homes valued at under $800,000, from 1 August.

There will also be concessions available for new homes under $1 million in value (up from the previous limit of $800,00).

Previously, stamp duty applied to homes worth more than $650,000. 

According to media reports, the move is expected to support approximately 6,000 first home buyers while boosting construction and creating jobs amid the COVID-19 crisis.

As well as increasing the stamp duty threshold for newly built homes, the government will also raise the threshold for stamp duty on vacant land.

This will rise from $350,000 to $400,000 and will phase out at $500,000.

The temporary changes will only last for a period of 12 months and will only apply to newly-built homes and vacant land, not to existing homes.

“Thousands of people will see their bank balances benefit from this change – it will help get more keys into more front doors of more new homes,” Ms Berejiklian is reported to have said this morning.

“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before.”

NSW Treasurer Dom Perrotet tweeted this morning: “Stamp duty waived or discounted for thousands across NSW. All told, new home buyers will be able to save up to $31,000 as we keep the construction sector fired up and employing people.”

He later stated: “The current scheme has already helped over 93,000 first home buyers since July 2017 and this will give the construction industry extra support as we face the challenges of COVID-19.

“We need to ensure our building sites keep ringing with hammers and saws as that means more people working, and first home owners will save money in the process.”

The NSW Government will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total.

This means the maximum amount of benefit a home owner could be entitled to is $32,335 if purchasing a new home and accessing the grant.

The move compliments the intentions of the federal HomeBuilder scheme that provides a $25,000 grant to owner-occupiers “substantially renovating” or building a new home between 4 June to 31 December 2020.

The federal government estimates that approximately 27,000 grants would be handed out as part of the package across $10 billion in building projects, supporting 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector. 

NSW government land tax debate heats up

NSW government’s stamp duty announcement comes hot on the heels of the release of the state’s draft Federal Financial Relations Review.

The review, undertaken by an ‘independent expert review panel’ appointed last year by NSW Treasurer Dominic Perrottet, sets out a roadmap to realign financial relations between the Commonwealth and the states.

The Supporting the road to recovery draft report, suggests that the state governments should be given more control over tax decisions, warning that the benefits of federalism are being undermined in Australia by duplication, bureaucracy and creeping centralisation, which it suggests has fostered “a learned financial dependency amongst the states”.

The report therefore advocates changing Australia’s tax mix to give states more control over their income, make taxes “as simple as possible”, and to limit the impact they have on citizens’ lives, such as the decision about when to move house and whether to take out insurance. Notably, this would include the replacement of stamp duties on property transfers and insurance taxes, with a broad-based land tax (with an “appropriate transition process that recognises the impact on property owners”).

According to the report, the 15 recommendations put forward would have the effect of making state revenues more stable and sustainable and give them more control over revenue raising and spending on essential services such as health and transport

The draft recommendations are open for consultation until 31 July, with a final report expected to be delivered in September 2020.

Categories
Property Information

HOW MUCH DEPOSIT DO I NEED FOR A DUPLEX INVESTMENT PROPERTY?

ARE YOU NEW TO DUPLEX PROPERTY INVESTMENT? WANT TO KNOW HOW MUCH DEPOSIT YOULL NEED FOR A DUPLEX INVESTMENT PROPERTY? READ TO GET ANSWERS TO THESE AND OTHER DUPLEX INVESTMENT PROPERTY QUESTIONS.

Investing in a duplex unit is without a doubt a savvy way of generating passive income and build wealth. With such possibilities, its no surprise why many are turning to duplex investment property. If you want to make such an investment, it is important to know the costs. By doing so, youll know the amount of finance you require for your investment. In other words, youll know how much deposit youll need for your duplex investment property.

SO WHAT ARE THE COSTS INVOLVED?

While the costs involved are vast especially if you settle with building your investment property, you can get a clear picture by speaking with an expert. Experts like PRPTY360 are sure to give you a detailed list of costs involved. Once you’ve listed all the costs your investment needs, decide on the duplex you want to build. Why is this important? Well, it determines the type of mortgage you can ask for and receive. Duplexes with a total of four or fewer units are treated by lenders as a residential real estate. If your property is labelled a residential real estate you can build or buy it using a regular or single family home mortgage. If your duplex has five or more units, the process of seeking finance for it in terms of mortgage is different. In case you are wondering why this is because lenders treat your unit as a commercial real estate. Many investors choose to avoid investing in duplexes that have five or more units. Why is this? Well, this is process is not easy. If you were to apply for a mortgage to finance this type of investment, youll note that it is difficult to get approval. This is why many investors choose to go for a duplex with fewer units.

WHATS THE MAXIMUM MORTGAGE AMOUNT FOR A DUPLEX INVESTMENT PROPERTY?

Whether you plan on occupying one unit or not, you can seek financing for your investment property from several lenders. To get a complete list of lenders, do visit Your Mortgage. There youll find a list of financial institutions in Australia that offer loans perfectly tailored for owner occupant investors. When seeking finance, keep in mind that investing in duplexes, on the other hand, has its own share of loan limits. If you are planning on investing a two unit duplex, the loan limit increases by $100,000 or $200,000. If you are investing on a three-unit duplex, the limit increases by $200,000 or $250,000 while a loan for a four-unit duplex increases by $300,000 or more.

CAN YOU USE RENTAL INCOME TO QUALIFY FOR A LOAN?

If you intend on buying or building a duplex or multi-home, you can use rental income to qualify for a loan. This, of course, applies only if you intend on renting out your duplex. For you to qualify for this loan type, you a need to provide a lease signed by your renter. You cannot ask for a loan approval based on anticipated rent income. Once processed, the lender uses a percentage of your monthly rental income as part of the loans underwriting. If you have any further questions about the finance of duplex investment property or any other questions regarding a duplex property, feel free to contact us through our contact us form. Written by Duplex Invest
Categories
Property Information

SHOULD YOU INVEST IN A DUPLEX IN 2020?

Short answer, YES! Without a doubt.

Long answer, 

Duplexes are among the most common dual-income investments that help investors improve their equity over a short period and ultimately fast-track their way to financial freedom. Could this be the right asset for you?

JOIN our FREE webinar on the 20 August 2020 Thursday on Why you SHOULD invest in a duplex property in 2020 and everything you need to know about a duplex property! SECURE YOUR SPOT NOW>>  https://online.prpty360.com.au/duplex-free-webinar/

A duplex is generally defined as “two separate homes built on the same title” which could be retitled as strata titles depending on the investor’s preference.

Unlike subdivided land, a duplex maximises the potential of the land without additional holding fees, insurance costs, council rates and other associated costs. It may also increase tax depreciation and returns on investment.

1. YOU CAN EARN MORE MONEY WITH GREAT MONTHLY CASHFLOW POTENTIAL 

The unique thing about investing in duplexes is that it provides options to the owner. You can choose to live in one side of the duplex while renting out the other side, or rent out both units. Renting out both units will produce monthly cash flow. And if you’ve taken the time to do your homework and snagged a great deal, it’s likely the combined rent from both tenants will cover the entire mortgage and then some. This makes owning a duplex, potentially very lucrative in 2020. 

2. THE RISK OF EARNING $0 IS LOW

Keeping with the comparison of single family homes vs multi family homes, duplexes enjoy lower vacancy rates. It’s highly improbable that both units will remain vacant (if you have chosen a good place to invest in real estate). With single family homes, vacancy means no rental income at all. If a tenant moves out of one unit or you have trouble filling it, you’ll only lose half of the rental income with a duplex rental property.

3. LIVE FOR FREE OR CHEAP WHILE YOUR TENANTS PAY YOUR BILLS

One of the most appealing parts of investing in a duplex is the ability to live for free or cheap. Living in one side of the duplex and renting out the other can potentially cover or lower your mortgage each month.

For example, let’s say the mortgage on your duplex is $1,500 a month. And you rent out the other half for $1,000 per month. Then you’d only be paying $500 a month while your tenant pays the rest. Or you can make double payments and pay off your loan quicker and start earning passive income.

4. THEY’RE AFFORDABLE – TWO UNITS IN ONE TRANSACTION

A duplex is typically (not always) more expensive than a single-family home, at least in the beginning. However, you’re getting two units in one transaction, which makes them extremely affordable, especially long term.

Another reason duplexes are so affordable in 2020 is location. More often than not, duplexes are located in very affordable neighborhoods. Additionally, you’ll be getting rental income every month, making them even more affordable. 

5. TAKE ADVANTAGE OF LANDLORD TAX REDUCTIONS

Did you know that investing in a duplex as an investment property in 2020 qualifies you for several additional tax deductions? Whereas single-family homes don’t offer the same tax breaks. Duplex owners can deduct most expenses for maintenance, yard work and repairs. 

SUMMARY

In summary, as property acquisition specialists with over 20 years of experience, we strongly recommend purchasing a duplex as an investment property, especially if you are just starting out as a beginner in property investment. Duplexes are a good real estate investment– some of the best in the market, actually. You have different options for rental strategies and can get access to low down payment investment property loans.

As one of Australia’s leading property investment advisers, we have access to off-market opportunities that are not available to the general public. We can negotiate deals below market value, giving our clients the best price possible for our duplex opportunities. 

Do you want to learn more on how you can achieve cash flow positive investment with a duplex? Tune in to our webinar on “Why you should invest into a duplex webinar in 2020” on the 20 August 2020 Thursday! In this webinar, hosted by Julian Fadini, Director of PRPTY360 we will teach you everything you need to know about duplex property and why you should invest in one.  SAVE MY SEAT>>  https://online.prpty360.com.au/duplex-free-webinar/

 

Get in touch with us now if you want to learn about our current duplex opportunities we have available ( Up to $225,000 instant equity)!