Real Estate & Rental & Lettings News in Australia from Propertyshowrooms.com

Australian rental sector 'strengthening'

Mon, 5 Dec 2011 00:00:00 GMT

Although the value of homes across Australia's state capital cities has fallen by 2.8 per cent in real terms since the start of 2011, there has been an improvement in the rental sector.

This is according to the latest RP Data - Rismark Home Value Index for October, with Rismark managing director Ben Skilbeck highlighting the changing fortunes of the lettings market.

"While homeowners and property investors have endured a 2.8 per cent tapering in actual home values over the course of 2011, rental growth has been very solid," he stated.

Mr Skilbeck cited figures from the Australian Bureau of Statistics, which show that rents have increased by between four and five per cent so far this year.

He commented that the Australian residential property sector has exhibited "impressive" stability in 2011 when compared to the country's stock market.

Meanwhile, commercial real estate in the nation has experienced a strengthening of gross rental yields, Mr Skilbeck added.

Earlier this month, a survey published by the Royal Institution of Chartered Surveyors found that commercial sector rental expectations for the final quarter of 2011 were positive, despite lower tenant demand.

Sydney average house prices rise

Sat, 24 Sep 2011 00:00:00 GMT

The latest research published by Savills shows that homes in Sydney have seen their values increase.

According to the firm, the average price of a dwelling in the New South Wales city in June rose by 1.6 per cent, with houses experiencing a boost of 3.4 per cent, compared to a year earlier.

However, the number of transactions taking place in the market over this period declined by 16.8 per cent for residential units as a whole and by 19 per cent for houses.

Savills noted that vacancy rates in the city remain very low at 1.5 per cent, citing the most recent data published by the Real Estate Institute of New South Wales.

As a result, investors have "enjoyed increased demand and consistent rentals", with the organisation anticipating that this scenario will continue "due to the continued disparity between the supply and demand of residential accommodation".

Eynas Brodie, editor of Australian Property Investor, recently stated that overseas investors are attracted to the nation's real estate sector for a number of reasons, including its education system, business opportunities and political stability.

Brisbane's most affordable areas revealed

Wed, 27 Jul 2011 00:00:00 GMT

A new survey by PRDnationwide has revealed which suburbs in Brisbane, Australia are most affordable - with Kedron, Lutwych and Wooloowin all cited as being good areas to buy in.

Josh Brown, research analyst at the firm, explained that there has been "significant development" in these parts of the city over the last two years.

"This means when those suburbs start to witness price recovery, it could be accelerated due to coinciding with improved amenities and investor interest," he stated.

Mr Brown went on to note that those purchasing property in these locations can expect to receive strong rents if they let the dwelling, while first-time buyers are also being attracted to the more affordable districts of Brisbane.

By contrast, the most expensive suburbs in the city were revealed to be in close proximity to the central business district, with New Farm topping the list with an average house price of AU$1.3 million (£868,017).

In the Western Australian city of Perth, median house prices have dropped for five consecutive quarters, preliminary data from the Real Estate Institute of Western Australia showed earlier this month.

Property sales in Perth also fell marginally during the second quarter of this year, compared to the three months to March, the organisation added.

Gap year students could boost Aussie buy-to-let market

Tue, 31 May 2011 00:00:00 GMT

Buy-to-let investors in Australia might want to try and take advantage of the country's enduring popularity with gap year travellers.

Janice Kurrle, UK marketing manager at the South Australian Tourism Commission, explained that the similar culture and language meant that the country is particularly popular with Brits.

"Australia is a destination which is quite appealing although it is far away," she told researchers.

Buy-to-let investors could be tempted to try and take advantage of this burgeoning market, with property located close to major tourist sites likely to offer the best potential returns.

"There are a lot of attractions in Australia which are quite alluring to the gap year traveller, things like the Great Barrier Reef, Kanga Island, Uluru and Sydney," Ms Kurrle explained.

It follws a recent report from A Place in the Sun which suggested that despite recent price falls in Australia, there are still plenty of investment opportunities for potential buyers.

Aussie property market offers great 'buy-to-let opportunites'

Fri, 27 May 2011 00:00:00 GMT

Despite the Australian property market recently having some of the sparkle taken off, there are still plenty of investment opportunities for potential buyers.

In particular, the buy-to-let sector still boasts a wealth of prospects for investors, A Place in the Sun reports.

The average price of a home in Australia fell by 0.4 per cent in the first quarter of this year and 2.1 per cent year-on-year, according to statistics released by RP Data-Rismark. The company added that average rental rates have appreciated by 4.6 per cent.

Highest yields can be achieved in Darwin, followed by apartments in Hobart and Canberra, Brisbane, and Sydney.

Tim Lawless, research director at RP Data, commented: "In contrast to the fall in home values, gross rental yields have been improving with apartments and houses now delivering a gross return of 4.9 per cent and 4.2 per cent, respectively, in March 2011.

"With household incomes growing at six per cent per annum, interest rates potentially approaching the peak of the tightening cycle, rents increasing, and house values going nowhere, buyers are seeing an improvement in their position."

Investing in a Holiday Home - What to Expect

Wed, 27 Apr 2011 00:00:00 GMT

When you invest in a holiday property, you risk letting your emotions get the better of you at the expense of your finances. Fortunately, a little wise advice can help your holiday home provide you some income as well as great holidays and hopefully selling your house will never become a necessity.

Some owners love having a holiday home at their disposal and are satisfied if they can make $10,000 and pay the land taxes. Others pull in up to $60,000 a year for a handsome return on their investment, but must remain heavily involved, looking after the home between tenants, providing keys, and so forth. What is most important to you—return or lifestyle?

Rates for short term rentals are certainly superior to long term. A one bedroom in Sydney with an unfurnished return of $400 a week will likely earn $800 weekly as a short term, furnished rental property, minus about 20 percent for the management fee.

However, how often will you be able to pull in top rents? In a metropolitan area you may well get 90 percent occupancy, but in a regional area you may achieve only 20 to 40 percent. Management fees also vary wildly, from 16 percent plus a $90 cleaning fee each rental in Victor Harbor, to up to 50 percent on the Gold Coast.

It’s also important to consider actual cash flow versus high rents. Rental properties may stay empty for weeks at a time, but you’ll still need to pay the mortgage, while maintenance and management costs cut into your gross income and choke your cash flow.

Holiday letting can often be more lucrative than permanent rentals. For instance, a five-bedroom house can bring in as much as $75,000 a year in Lorne, Victoria. This equals a 6.9 percent gross yield, based on the current price of similar homes in Lorne. This is substantially more than the 5.5 percent yield for permanent rentals, according to the July 2009 listing in Australian Property Monitors.

Keep in mind that banks view holiday rental properties as higher risk, so investors may have to contribute a higher deposit. Another crucial aspect is the income tax break. Depreciation benefits and regular tax deductions may be associated with furnishing holiday rentals, depending on strategy. The Tax Office states that deductible property expenses are valid only in relation to the period that tenants actually occupy the property, or it is truly free for commercial rental. Travel costs are likewise deductible for true maintenance, but not personal trips.

Due to capital growth and the phenomena of sea change, owners of holiday homes in certain seaside locations have profited enormously in the past ten years. An idyllic location with a small local population and enough appeal to attract holiday-makers every year may be the key. Holiday homes that previously barely broke even in rental fees have risen in value by hundreds of thousands of dollars in the past ten years.

Even with current, higher purchase prices, there is still growing room in the right locations. Seaside locations will always have the potential for long term capital growth, and some continue to experience healthy price increases even in the current economy. Still, investors must be able to cover costs when seasons are slow. A property in an established city or town inhabitants will provide more reliable ordinary returns than in a remote beach village. In addition, amenities and infrastructure are needed for eventual capital growth.

Even well-known locations currently offer great bargains, such as the Gold Coast. True beachfront properties in older structures are available there for around $300,000, a real steal.

Still, remember that holiday homes are an investment in lifestyle with the goal of long term gain. Body corporate fees and renovation costs can be quite high, and you will need to own the property about ten years to get about 10 percent a year in capital gains. However, that’s better than for general housing, and some properties reap even more.

Independent one or two bedroom properties appeal to more buyers and provide the option of permanent occupancy. However, beware of council zonings. Some complexes do not permit more than three month occupancy, making eventual permanent letting or occupation impossible.

To summarize, you need to be a good marketer and manager of your property in order to reap big gains from a holiday home. If you simply want a place for a weekend getaway in a prime locale, just be ready to shoulder many costs yourself. Either way, with realistic expectations, you can make the best of your holiday home.

Article written and supplied by Anna K. on behalf of Sell My Castle

Anna K. is a journalist from Brisbane, Australia. She writes for several blogs about finance topics such as real estate, insurance and several others which attract attention of many readers.

Australian rents surge in capital cities

Thu, 17 Feb 2011 00:00:00 GMT

Individuals with property in Australia will be interested to learn that the cost of renting a home in the country's capital cities jumped in 2010.

And experts have predicted that further gains will be seen in this coming year, as demand continues to outpace supply, Dow Jones reports.

Residential rents in Sydney for a two-bed apartment climbed seven per cent over the last year, making the city the 13th most expensive in the world in terms of rental costs.

"All of those holders of property that benefited from house price gains are now looking at their yields and saying they haven't done much since 2009, so I'll have to bump that up a little bit," said Ben Jarman, an economist with JPMorgan in Sydney.

"They will see their soft to sideways movement in dwelling prices and cast rents up quite a bit, which will weigh on living costs and inflation."

According to the latest figures from RP Data, home sales in capital cities down under accounted for a massive 63 per cent of all purchases during November 2010, Business Spectator reported.

Aussie rents set to rise amid housing shortage

Sat, 13 Nov 2010 00:00:00 GMT

Buy-to-let investors in the Australian property market may be interested to learn that rents in the country are expected to rise as a result of a slowdown in house building.

Housing analysts in the country have forecast rent rises across all Australian capital cities as new home construction fails to keep up with demand, home borrowing stabilises at weaker levels and the population continues to grow.

According to a report in the Sydney Morning Herald, tenants in Perth, Brisbane and Sydney could be forced to get used to annual rises of as much as six or seven per cent.

ICAP economist Adam Carr told the news provider that there was an expectation that rental rates would climb over the next two to three years.

"We've got solid population growth, good incomes growth, good jobs growth and we're just not building enough houses, so the logical conclusion from that is that rents are going to be pressured," Mr Carr explained.

Property prices in Australia expected to fall

Fri, 23 Jul 2010 00:00:00 GMT

The property prices in some parts of Australia may be close to peaking, indicating that prices are set to fall.

Downward pressure is likely to be placed on areas of the country due to a dramatic increase in the number of houses coming on to the market, A Place in the Sun reported.

In the past year, a double-digit rise in residential prices has meant that some would-be buyers hoping to emigrate from the UK to Australia have been unable to afford property there.

However, if Australian property prices were to fall and housing stock for sale increase this would open up more choice for homebuyers.

According to advisory and forecasting firm SQM Research, around 35,000 homes in Melbourne will be advertised for sale in December.

The Economist magazine's latest survey of global housing reported that Australian property was overvalued by 61 per cent based on the current ratio of house prices-to-rents and historic ratios.

Australian property price growth 'levelling off'

Tue, 22 Jun 2010 00:00:00 GMT

Residential property growth in Australia is likely to slow with fewer first-time buyers and increasing interest rates, it has been claimed.

The latest Residential Property Prospects Report from BIS Shrapnel has suggested that prices are unlikely to fall and rents will continue to rise but at a slower pace.

Angie Zigomanis, a senior project manager at the firm, explained that the end of government grants meant that affordability had suffered.

However, the report claimed that real estate investors will replace some of the demand lost because of these factors.

A more stable interest rate will underpin investor confidence as the economic situation continues to improve.

Among the areas that BIS Shrapnel claimed would experience the strongest growth are Sydney and Perth, while weaker demand will be seen in Brisbane, Hobart and Canberra.

The latest statistics from the RP Data Rismark Hedonic National Home Value Index supports this view, with the document reinforcing the fact that property values will begin to level off.

Australia property price increases slowing

Wed, 2 Jun 2010 00:00:00 GMT

Property investors in Australia may be interested to hear that the latest data surrounding real estate prices in the country points to an end to the residential property boom.

According to the RP Data Rismark Hedonic National Home Value Index, the majority of large cities in the country posted either declines or moderate growths in value during April.

Real estate prices in the country's eight capital cities averaged an increase of 0.2 per cent, with a 12 per cent rise over the course of the year so far.

RP Data research director Tim Lawless observed that the figures turned out to be the lowest monthly capital gain since the global financial crisis.

The real estate expert claimed that the current market could be characterised as having lower auction clearances, weak home loan approvals and lower consumer confidence.

He added that values should start levelling off, thanks to the recent interest rate rises and "the fact that home values have recorded very large gains across key markets since the start of 2009".

A number of Australians are calling for tougher measures to be introduced to limit the amount of property sold to foreign investors.

Tougher measures needed in the Australian property market

Thu, 27 May 2010 00:00:00 GMT

A number of Australians are calling for tougher measures to be introduced to limit the amount of property sold to foreign investors, it has been revealed.

According to the federal government in the country, overseas investors bought AD14.9 billion worth of houses and land during 2009, something that critics fear is preventing Australian nationals from getting on the property ladder.

The figures show that the government issued 4,827 real estate approvals last year for commercial and residential houses.

Following the announcement, the Australian government has revealed that it is going to adopt a more stringent approach to the approval process, with foreign buyers forced to sell property when they leave the country or face tough penalties.

"In one sense, little has changed. Foreign residents can still purchase Australian properties and, in particular, people in Australia on temporary residence visas can still purchase existing dwellings," explained immigration law specialist David Stratton.

Earlier this year, experts predicted that the lack of property on the Australian market would contribute towards an increase in house values in the country.

Australia rental costs increasing

Tue, 20 Apr 2010 00:00:00 GMT

Individuals with a property investment down under may be interested by news that rising house prices in the country are having a knock-on effect on real estate rental prices.

Australian Property Monitors has predicted that there may be a sharp rise in the cost of renting property in the country, with a growth of ten per cent cited by the end of the year.

Already in 2010, rents have increased by 1.5 per cent, with property in some regions - such as Darwin - jumping by ten per cent compared to the previous quarter.

Analysts have suggested that the rise could be attributed to a dwindling number of first-time buyers now entering the market - because of high costs and the expiry of government incentives.

In addition, official statistics have claimed that the gap between supply and demand for houses and apartments is set to surge over the next 20 years and will force real estate values to soar.

The gap is being blamed on the country's rising population and a lack of new builds currently in development.

Shortage of property in Australia set to push prices up

Wed, 7 Apr 2010 00:00:00 GMT

Property investors in Australia should prepare themselves for an increase in value of their property as the housing shortage continues to worsen, experts have predicted.

According to official statistics, within the next 20 years the gap between supply and demand for houses and apartments is set to grow from 100,000 up to 500,000 by 2029.

Among the regions which are expected to be hit hardest by the lack of property are New South Wales and Sydney, both of which could experience price booms as insufficient stock levels are met by huge demand.

A rising population and lack of new builds are being blamed for the property crisis that was exacerbated by the global economic recession, which forced many developers to abandon projects as they struggled to stay afloat.

However, despite rising prices representing good news for those already with property down under, it is causing a number of people in the country to be locked out of the housing market as they struggle to afford spiralling costs.

Earlier this week, the Reserve Bank of Australia raised interest rates for the second time this year.

Melbourne stars in property transactions

Thu, 4 Mar 2010 00:00:00 GMT

Rapid recovery and rising house prices make Australian property a safe investment, it has been claimed.

The Real Estate Institute of Victoria (REIV) revealed that the largest number of weekly transactions ever had been recorded in Melbourne last month where property sales accumulated over one billion AUD.

David Airey, president of the Real Estate Institute of Australia (REIA), said that it was reflective of the fact that Melbourne was a strong market in the country.

Furthermore, he added that in general, property prices were strong and continuing to grow and as such further increases were to be expected during this quarter.

"The property market in all Australian capital cities has had a rapid recovery from mid-2009 on, and noticeably in Melbourne and Sydney with property prices rising quite significantly over that six-month period," he said.

Mr Airey cited the recent news that nationwide the country had seen house prices go up by around 12 per cent in 2009 as a good reason to invest.

Meanwhile, the Australian Bureau of Statistics revealed that Australia saw a record number of arrivals and departures to the country last year.

Australian home sales in new rise

Fri, 8 Jan 2010 00:00:00 GMT

The number of home sales in Australia was up in November, new figures have revealed.

Data from the Housing Industry Association (HIA) revealed that there was an overall rise of 0.3 per cent in the number of transactions, compared with a drop of six per cent in October.

The statistics also showed that the increase was concentrated in sales of detached homes (up 0.8 per cent), while apartment sales dipped by 4.9 per cent.

HIA chief economist Harley Dale said the situation meant that rental conditions would still be "very tight" this year, but added: "Overall, leading indicators are pointing to a recovery in new residential construction in 2010."

This second factor could help create more choice for those keen to buy a new-build property in the country.

A recent study by Bankwest-Mortgage and the Finance Association of Australia found that first-time buyers looking for less expensive home in the country are tending to seek cheaper homes further from city centres.

Australian property 'to keep growing'

Thu, 17 Dec 2009 00:00:00 GMT

The Australian property market will continue to see growth and rising prices, an expert has said.

Economist with the Australian Property Monitors Matthew Bell argued that the removal of government incentives to boost first-time buyers is showing no signs of slowing the bottom end of the market, Your Mortgage reports.

He added: "And although interest rates are rising, this is not expected to affect prices until late 2010 and possibly 2011."

At the same time, Mr Bell noted, some parts of the country still offer affordable options as their recoveries have not been as strong, giving the examples of Queensland and Western Australia as states that have been slower to pick up but are set to grow in 2010.

Australia was shown to be one of the best performing nations over the past year for price rises, according to the most recent Knight Frank Global House Price Survey.

Head of residential research Liam Bailey stated that a major cause of this was Australia being left "relatively unscathed by the credit crunch".

Expats 'happy to stay in Australia'

Mon, 30 Nov 2009 00:00:00 GMT

Most of those who have emigrated to Australia are happy to stay there, new research has revealed.

In its Expat Explorer Survey, HSBC found that 88 per cent of ex-pats wanted to remain in the country.

Of those polled, 56 per cent own a property in Australia and 70 per cent say they are still financially better off than was the case in their home country, despite Australia's overall wealth rating being among the lower-ranked nations in the study.

Speaking to news.com.au, head of HSBC in Australia Graham Heunis said that the country was popular as a place to live for reasons beyond pure economics.

He stated: "Expats are enjoying not only an increased quality of life but are also finding it easy to fit in to their new communities."

Australia's economy has been emerging form the downturn in good strength, economists have noted.

Governor of the Reserve Bank of Australia Glenn Stevens remarked in a speech earlier this month that the country's recovery has even exceeded the forecasts of optimists.

Continued immigration to Australia backed

Mon, 16 Nov 2009 00:00:00 GMT

Calls to lower the level of overseas immigration to Australia have been rejected by a government minister.

MP Kelvin Thompson had argued that curbs should be put in place, but finance minister Lindsay Tanner told the Property Council of Australia: "The argument that Australia is already overpopulated is nonsense."

In a copy of his speech obtained by the Melbourne Age, he said: "If Australia seeks to persuade the rest of the world that we are overpopulated, we will be rightly laughed at.''

Rather, he noted, the country should consider improving its urban planning, noting that European cities tend to have far higher population densities than Australian ones.

Britons looking to buy a property in Australia may be encouraged by such comments, as they might also have been by recent remarks from Reserve Bank of Australia governor Glenn Stevens.

He stated that the extent of the country's recovery from the economic downturn has been so impressive that it exceeds that which "even most of the optimists" were predicting.

Strong economy prompts Australian base rate rise

Wed, 7 Oct 2009 00:00:00 GMT

Australia's central bank has raised its main interest rate in recognition of the country's economic recovery, of which the housing market revival has been one element.

Reserve Bank of Australia governor Glenn Stevens explained that the rise in the cash rate from three per cent to 3.25 per cent was due to a range of indicators suggesting that the economy is set to enjoy "close to trend" growth in 2010.

This move will help "ensure" the sustainability of expansion in the economy, Mr Stevens added.

Positive indicators also include lower than expected unemployment, private sector investment growth and the fact that the nations with the best performing economies in the world are Australia's main trading partners in Asia.

Those keen to buy in Australia may enjoy the fruits of this development impacting on their property.

Despite the rate rise, they will also be able to enjoy historically low interest levels, with the cash rate having been at 7.25 per cent as recently as August 2008.

Australia sees new house price rise

Thu, 1 Oct 2009 00:00:00 GMT

Property prices jumped by a record amount in Australia in August, new figures have indicated.

The RP Data - Rismark Home Value Index revealed a 1.9 per cent jump in values during the month, the largest such increase it has recorded since the survey began in January 2005.

Such "exceptional" figures have boosted the rate of price increase across the country so far this year to 7.9 per cent.

Research director for the body Tim Lawless commented: "We are now seeing home values rising at a solid rate, almost 80 per cent of auctions are clearing and sales volumes have bounced back significantly."

RP Data's managing director Christopher Joye attributed the trend to high population growth, low interest rates, a shortage of demand and unexpectedly positive employment figures.

House prices in Australia will continue to increase due to the shortage of supply, head of economic analysis department at the Reserve Bank of Australia Tony Richards recently predicted.

Australia tipped for price surge

Wed, 30 Sep 2009 00:00:00 GMT

Property in Australia could be set to see a large rise in price in the next few years, an economist from its central bank has predicted.

Head of economic analysis department at the Reserve Bank of Australia Tony Richards observed in a speech: "Over the past five years, housing prices have risen less rapidly than incomes, after a long period when the reverse was true."

However, economic recovery, rises in interest rates and a high level of population expansion could all change this, due to a supply-side deficit.

While more homes are being built, there could also be a lack of labour in the construction industry when the jobs market improves, Mr Richards argued, something that could limit the sector's ability to deliver enough homes.

The lack of supply will prevent Australia suffering any new slump in its property market, two economists recently said.

AMP Capital Investors chief economist Shane Oliver and CommSec chief economist Craig James recently cited this factor that will underpin property values, news.com.au reported.

Australian city 'bouncing back'

Fri, 25 Sep 2009 00:00:00 GMT

The city of Perth in Western Australia is seeing a property market recovery, it has been stated.

Valuation manager at Propell National Valuers Travis Coleman told the New York Times that Perth had gone through a period of boom up until 2007, overtaking Sydney to become the costliest place to buy a house in the country.

However, the paper reported, this was followed by a 12 per cent slump in prices until a recent rebound began on the back of new mineral and fossil fuel projects in the state.

The average house price in the city is now AUD375,000 (GBP202,000).

A recent survey by St George Bank of the best long-term value-for-money places to buy in Australia highlighted Bassingdean as the city's most favoured location, with Thornlie also recommended.

Bassingdean was described as "one of the few suburbs within the inner ring which still has a median house price belowAUD500,000."

Australia 'should add to housing supply now'

Fri, 31 Jul 2009 00:00:00 GMT

Australia can prevent a housing bubble occurring by concentrating heavily now on increasing the supply of property, the governor of the Reserve Bank of Australia Glenn Stevens has said.

Speaking at a charity event, the governor noted that the present moment is an opportune one due to the low costs of borrowing and raw materials.

He stated: "This ought to be the time when we can add to the dwelling stock without a major run up in prices".

Not to do this would be "disturbing", Mr Stevens said, as it could affect the affordability of property that generations of Australians have been able to "take for granted".

Meeting this and other tasks in hand should help Australia recover strongly, with the economy showing many positive signs, he argued.

Earlier this month, the bank held the cash rate at three per cent, but Mr Stevens said there is scope for further reductions if required, something that could lower mortgage costs.

Australian property auction outcomes 'improving'

Tue, 14 Jul 2009 00:00:00 GMT

A growing proportion of Australian properties put up for auction are being successfully sold, new figures have revealed.

Data from the Australian Property Monitors showed that the rate of clearance in Sydney last weekend was 69 per cent, compared with the 48 per cent rate of 12 months ago, reports the Australian.

The paper noted that this amounted to AUD77 million (GBP 37 million) more business, with the biggest sale being that of a home for AUD2.75 million.

It also revealed that there had been large increases in clearances in Melbourne, Brisbane and Adelaide.

In the case of Brisbane, this saw the rate almost doubling from 23 per cent to 45 per cent.

Such trends may suggest that the property market in Australia is starting to pick up.

Last month a report by BIS Schrapnel predicted that cities such as Melbourne, Sydney and Adelaide could see prices rise by as much as 19 per cent over the next three years.

Australian property prices show rise

Wed, 1 Apr 2009 00:00:00 GMT

A new survey has indicated that

Australian property

prices have risen.

The RP Data-Rismark Hedonic Property Index revealed that the average house price in the country rose by 1.1 per cent in the first two months of 2009, having fallen by three per cent in 2008.

Australia's two largest cities drove the increase, with

Melbourne property

prices up 1.9 per cent and Sydney recovering by 0.5 per cent.

Investors keen to buy in locations where prices are rising may pick these locations over the other major cities, with Brisbane, Perth, Adelaide and Canberra all experiencing continued declines.

RP Data said that lower mortgage costs after a series of interest rate cuts had made buying property a more attractive proposition.

Earlier this month, the board of the Reserve Bank of Australia voted to keep the cash rate on hold at 3.25 per cent.

The rate has been cut several times since it peaked at 7.25 per cent in the summer of 2008, with the first of these reductions coming last September.

Australia rental market 'set to improve'

Tue, 17 Feb 2009 00:00:00 GMT

Falling interest rates, low prices and rising rents are resulting in an increase in interest in Australia's property investment market, it has been claimed.

According to the Australian, buyers in some areas of Sydney and Melbourne are now able to purchase properties that will provide a greater rental return than the cost of mortgage repayments.

Speaking to the newspaper, managing director of SQM Research Louis Christopher stated that small, inner-city apartments and homes in cheaper suburbs are likely to provide the highest rental returns.

"Vacancy rates are still very tight at the affordable end of the market so rents will continue to rise in the sector in 2009, further boosting returns for investors," he stated.

However, Mr Christopher noted that those looking to invest in the market need to ensure they have plentiful equity, something which UK buyers may wish to keep in mind.

A survey recently conducted by Pickfords revealed that Australia is growing in popularity among Britons, with Queensland being the top state for those looking to move to the country.

Rents climbing at 20-year highs

Thu, 29 Jan 2009 00:00:00 GMT

Rents across Australia are growing at their fastest annual rate since 1989...

Government plans to boost rental fund

Wed, 28 Jan 2009 00:00:00 GMT

A BIG increase in funding for the construction of affordable housing could form part of the stimulus package being considered...

Cheap rentals may be on the way

Mon, 24 Nov 2008 00:00:00 GMT

LOW to moderate income earners could move into more affordable housing within weeks under a scheme agreed to by Parliament...

Move to ban holiday letting in Byron Bay

Tue, 18 Nov 2008 00:00:00 GMT

Authorities in Australia's Byron Bay are clamping down on owners renting out their properties to tourists. The council previously attempted, unsuccessfully, to ban short term holiday letting in Byron Bay but has now drawn up new plans.

Byron Bay Council has incorporated an "urban holiday letting precinct model" in its local environment plan (LEP), reports Australia's Daily Telegraph.

The model seeks to prohibit short term holiday letting in Suffolk Park, a residential area just south of Cape Byron. According to the council, holiday letting is reducing the supply of accommodation for local workers and people trying to get on the housing ladder. They also argue that holidaymakers disrupt local residents.

However, the move has been met with opposition by some.

John Gudgeon, president of Byron Bay Holiday Letting Organisation, said: "There are certain rights that go with owning a property. Homeowners should have the right to choose whether they want to lease their property."

"We believe there is no difference between letting a property for six months or for two weeks. It's causing a huge amount of consternation for owners."

Byron Bay Council had not carried out research into the economic impact of prohibiting holiday letting in the area, which is dependent on tourism, Gudgeon added.

Before anything is finalised, the council has to send its draft LEP to the state government for approval. It may be months before it is returned to the council.

The council tried to ban holiday letting through its draft LEP in 2006. However, the plans were abandoned following lengthy discussions with property owners and real estate agents.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

Rate cut may help with rent - for a while

Thu, 16 Oct 2008 00:00:00 GMT

TENANTS across Australia look set for a short-term reprieve from rising rental prices, with analysts expecting landlords to pass on the benefits of interest rate cuts...

Tenants just need tender loving care

Mon, 22 Sep 2008 00:00:00 GMT

TREATING tenants nicely will help property investors avoid damage bills and late rental payments, a landlord insurance provider says...

Dodgy agents drive rental bidding wars

Tue, 26 Aug 2008 00:00:00 GMT

DESPERATE tenants are being exploited by real estate agents using the housing crisis to drive up rents...

Rental auctions on the way: HIA

Tue, 19 Aug 2008 00:00:00 GMT

The Housing Industry Association says the housing crisis will soon see people bidding at auctions for a rental property...

Darwin renters warned of property scam

Thu, 17 Jul 2008 00:00:00 GMT

Northern Territory Consumer Affairs says it will be extremely difficult to find those responsible for an internet renting scam that has targeted people in Darwin's tight property market...

Depreciator's Top Ten Tips for Tax Time in 2008

Mon, 7 Jul 2008 00:00:00 GMT

With over $24 billion being claimed in rental property deductions in 2007, Australia's 1.5 million landlords are again a strong focus for the ATO in the 2007/08 financial year.

The Second Commissioner of Taxation, Jennie Granger, has advised that the ATO is targeting landlords that have been in the market for a long time and have unusually high deductions, low rental income compared to deductions and high interest / borrowing expenses.

Depreciator's 2008 Tax Tips have been written to include the things that the ATO is looking out for, common mistakes that property investors make and useful tips to make you well informed when you do your tax return this year...

Tips for Aussie investors venturing overseas

Mon, 7 Jul 2008 00:00:00 GMT

There are some golden rules that Australians with overseas rental properties need to follow if they don't want a visit from the taxman.

In this article originally published in Australian Property Investor magazine, accountant and registered tax agent, Julia Hartman, gives investors the low-down on how to avoid making any costly taxation blunders with overseas properties...

Depreciator's Top Ten Tips for Tax Time in 2008

Mon, 7 Jul 2008 00:00:00 GMT

With over $24 billion being claimed in rental property deductions in 2007, Australia's 1.5 million landlords are again a strong focus for the ATO in the 2007/08 financial year.

British expatriates head for Australia

Thu, 19 Jun 2008 00:00:00 GMT

A record number of people from the UK are choosing to move abroad to places such as Australia, a new study has found. Research by removals firm Allied Pickfords revealed that more people than ever before are currently relocating overseas from Britain.

According to the company, Australia is the most popular destination overall, ahead of other migration hotspots such as Spain and Cyprus.

Commenting on the findings, Allied Pickfords described the country as a "firm favourite" for British expatriates. The firm said: "People are prepared to consider all parts of the globe as their home."

Figures from the company showed that Australian cities were found to be highly appealing destinations, in particular places such as Perth, Sydney, Melbourne and Brisbane.

The comments follow figures from HiFX which revealed a recent surge of interest in buying property in Australia.

According to the firm, the country was the subject of ten per cent of the enquiries it received into moving abroad in April.

Australia attracts British migrants

Wed, 18 Jun 2008 00:00:00 GMT

More and more Britons are choosing to set up home in Australia, according to new figures.

Research by NextstepAustralia.com revealed that interest in the country among prospective expats is currently at a record high, reports Homes Worldwide.

Indeed, the website believes about 30,000 people from the UK will move there during 2008 alone.

This has been partially attributed to ongoing economic problems in Britain, such as the increasing price of food and petrol.

Dave Roberts, founder of the online portal, commented: "The current economic conditions are persuading many to look for a new start in Australia where life isn't quite as expensive."

He added that the strong level of interest in the country has taken everyone at the website by surprise.

The comments follow figures from HiFX which revealed a recent surge of interest in buying property in Australia.

According to the firm, the country was the subject of ten per cent of the enquiries it received into moving abroad in April.

Australia popular with British migrants

Thu, 29 May 2008 00:00:00 GMT

Britons who want to live abroad could find Australia a good place to live, according to property experts.

ShelterOffshore.com stated that the country is currently very popular with migrants from the UK, as it offers both lifestyle and financial benefits.

However, the website recommended that people research the market thoroughly before committing to a move.

"It can take time to get through the emigration process and this time can be well spent researching the market in Australia," it commented.

ShelterOffshore.com added that a third of Britons who moved abroad in 2006 moved to Australia and New Zealand.

This, it stated, means that there are large expat communities in many parts of the country.

The comments follow figures from HiFX which revealed a recent surge of interest in buying property in Australia.

According to the firm, the country was the subject of ten per cent of the enquiries it received into moving abroad last month.

Australia recommended to investors

Mon, 19 May 2008 00:00:00 GMT

Overseas property investors in the UK have been advised to consider purchasing a residence in Australia.

According to the Foreign Property Buyer website, there is currently very strong demand for housing in the antipodean nation.

This was partly attributed to the fact that Australia's population is continuing to rise.

Specifically, the country was said to be very popular with migrant workers, in particular skilled professionals who want a good job and a high standard of living.

Foreign Property Buyer added this demand means that Australia is well-placed to weather the ongoing turbulence in the global economy.

As a result, it believes the country could be ideal for Britons who are seeking a secure investment overseas.

"Australian property looks like a fairly safe bet for many foreign property investors," the website commented.

Paul Arthur, director of The Emigration Group, recently told the Western Mail that the country is proving to be very popular with skilled professionals such as doctors and architects.

Speaking to the newspaper, he said Australia's "booming" economy has made it an appealing destination for those who wish to progress in their career.

Australia popular with Britons

Mon, 10 Mar 2008 00:00:00 GMT

Many Britons who want to move abroad are increasingly setting up home in Australia, a media report has revealed.

The Western Mail stated that the antipodean country is currently the most popular destination among expatriates from the UK.

According to the newspaper, British consumers have been drawn to an Australian property by a number of different factors.

The friendly nature of local people was cited as one important consideration, along with the various economic opportunities it offers.

In addition, the publication said that many British people were tempted to live there on a permanent basis because it offers a much better climate than the UK.

This comes after Paul Arthur of The Emigration Group said Australia is proving to be highly popular with expats as it has lower living costs than the UK.

Speaking to the Manchester Evening News, he added that it also has "huge shortfalls" of skilled labour, which means it also has numerous job opportunities.

Australia to attract more visitors

Tue, 19 Feb 2008 00:00:00 GMT

Rental investors in Australia could be set to benefit from a surge in tourist numbers this year, new research has suggested.

A poll by marketing firm The Network found that almost one in five independent travel agents in the UK were expecting the country to attract more visitors in 2008.

Meanwhile, more than one in three companies are expecting the global tourism market to increase by as much as ten per cent this year.

This means that owners of investment property in the most popular Australian tourist spots could see a significant increase in demand for rental accommodation over the next few months.

As a result, many will be likely to collect greater rental yields than they did in 2007 and enjoy higher occupancy rates.

The findings come after figures from the Tourism and Transport Forum showed that Australia attracted a record number of visitors last year.

Statistics cited by TravelMole revealed that the country attracted about 5.6 million leisure travellers in 2007.

Londoners look to move abroad

Fri, 22 Jun 2007 00:00:00 GMT

Residents of London are the keenest in the country to consider moving abroad, according to new research.

A survey by Bank of Scotland found that eight per cent of people living in London currently own a home abroad, with a further 52 per cent considering buying a home overseas or moving abroad permanently.

Tony Wilcox, managing director of the firm, said: "Londoners certainly are the most active when it comes to moving abroad or buying a home abroad."

The company also found that 48 per cent of people in Yorkshire had thought of purchasing a home abroad, followed by 46 per cent of Northern Ireland residents and 45 per cent of people in the south-east.

Australia was the most popular destination, with ten per cent of respondents suggesting they would live there, with France (six per cent) proving to be favoured among destinations in Europe.

Jeremy Knight, owner of Knight Knox International, recently stated that Adelaide is likely to offer investors considering purchasing property in Australia a great deal of potential.

Australian rents set to increase

Thu, 21 Jun 2007 00:00:00 GMT

Both rents and the price of investment properties in Perth, Australia, are set to increase significantly over the course of the next year, according to one expert.

Rob Druitt, president of the Real Estate Institute of Western Australia, said that rents may increase up to 50 AUD (21.21 GBP) a week in 2008, ABC.net reports.

"We anticipate that later in the year and early next year, we'll have a similar situation to this year with a shortage of rental properties and some spike in rents," he stated.

Jeremy Knight, owner if Knight Knox International, recently said that in Australia the rental yield relative to the cost of a property is generally "quite good".

According to Mr Knight, the Australian property market is similar to the UK's but far more stable.

Migration to the country and full-ownership for overseas investors means that the Australian market provides a number of opportunities for investors, he added.

Skilled migrants 'finding employment in Oz'

Tue, 19 Jun 2007 00:00:00 GMT

Record levels of employment are available for Britons who relocate to Australia, new research has suggested.

Employment rates for skilled migrants in Australia currently stand above the national average of 97 per cent, according to a study by the Australian Department of Immigration and Citizenship (Diac) cited by the Australian Visa Bureau.

This is a change from 2005, when a similar study revealed a 25 per cent unemployment rate among migrants.

Tom Blackett, a spokesperson for the Australian Visa Bureau, commented: "This news should come as a source of great encouragement to Australian visa hopefuls in the UK."

He added that many of those making the trip to Australia have found the experience to be an overwhelmingly positive one.

According to Diac figures, more than 3.5 million people have opted to become Australian citizens since the option was introduced in 1949.

Investors advised to head for Australia

Wed, 6 Jun 2007 00:00:00 GMT

The outlook for Australia's property sector has improved to the extent that investors are now returning to the market, it has been advised.

ANZ Bank research has found that vacancy rate across rented accommodation have fallen from 3.8 per cent in 2004 to 1.4 per cent currently, with levels expected to hit a 20-year low of one per cent by the end of the year.

Meanwhile, according to the Australian Bureau of Statistics, rents rose by 4.4 per cent and prices by 8.6 per cent in the 12 months up to March, according to news.com.au.

"Longer term, about 70 per cent of returns from residential property are derived from capital gains rather than rents, so that should be your focus,'' property advisor Michael Matusik told the news source.

House prices have risen by 128 per cent in real terms since the mid 1980s, ANZ chief economist Saul Eslake said last week, speaking at a Property Council of Australia event.