Summer has been and gone and thankfully for most parts of the state it was a drier season then 2021/22. Let’s do a quick recap so you are all caught up.
Interest Rate Rises: Many of you have likely felt the pinch of the consecutive interest rate rises that we have and will continue to (according to the Governor of the Reserve Bank of Australia) experience. Thankfully, most of our landlords continue to retain their properties and even purchase additional ones despite rising interest rates. The jump in rental returns throughout 2022 and for some into 2023, has helped alleviate the additional financial stress when it comes to owning an investment.
We encourage our owners to explore options within the financial markets to look at reducing increasing mortgage costs.
Have one of our friendly brokers review your mortgage to see if they can get you a better deal.
Make sure you get a professional tax depreciation schedule before tax time.
Refer them to a trusted (partnered) financial advisor to review how they are saving/spending.
We are hyperaware that the cost of owning an investment has and will continue to rise as we mentioned above. Please let us work with you to save you money on your mortgage. Email your property manager today, it’s that easy!
Vacancy Rates: Supply and demand continue to dominate the headlines across most of the country. According to our friends at CoreLogic, the vacancy rates remain at an all-time low while the value of rents rose 13.1% in Brisbane, 10.7% in regional Queensland and an average of 10.2% nationally over the 12 months to December 2022. Rental yields remain strong in most parts with Brisbane’s gross rental yield at 4.3% and regional Queensland even higher at 5%.
We are yet to see a strong recommendation from the government as to how they intend on combating the housing crisis. In the meantime the general consensus across most offices is that good tenants are still being placed in properties and it’s the less than desirable candidates (those with a history of rental arrears or damaging properties) who are the ones finding it much more difficult to rent a property.
Stage 1 Rental Reforms four months on: The mainstream media strategically hyped the changes to the rental reforms and the result was that it really plagued fear throughout many investors across the country. We are pleased to report that four months on from the changes coming into effect, we haven’t seen a huge change. Many property managers will agree the biggest change has been with fixed term and period leases. Agencies across the country should have very tight processes around lease renewals and their recommendations, taking into consideration your intentions with the investment. The second biggest change has been with tenants requesting pets. They haven’t been entirely unreasonable requests (no alpacas in apartments or horses in houses) and many investors have been accommodating with the assurance of their tenants agreeing to reasonable conditions for approval.