BRISBANE PROPERTY PRICES COULD SURGE 50% BY 2032
Property prices in Brisbane could see a boom of over 50% in the lead-up to the 2032 Olympics, according to industry insiders. REA Group Chief Executive Officer, Owen Wilson, said he expects Brisbane to outperform the rest of the country.
“I expect Brisbane will see the highest price appreciation in Australia in the lead-up to the Olympics,” Mr Wilson said. “There has been 45 per cent growth in the last few years, I expect it will be more than 50 per cent price growth in the lead-up to the Olympics.”
Mr Wilson highlighted the growing interest from foreign investors, particularly from India, as a key driver of growth in Queensland’s property market. “The largest source of immigrants at the moment is Indian high net worth investors who are looking to buy property,” he said. “Some ten years ago it was China.”
“There is still strong interest from foreigners to buy property in Australia.” Mr Owen said Brisbane is attracting people globally, based on the level of enquiries.
“If you look at enquiries on listings on realestate.com.au it’s up 20 per cent, which compares to four per cent in total for the country,” he said.
“There’s so much interest in property here. Brisbane has been a huge beneficiary of international and internal migration, especially from the southern states. The only place that rivals Brisbane for energy right now is Perth.”
Ray White Group Managing Director, Dan White, said that South East Queensland’s property market has consistently outperformed other major urban areas over the past three years.
“Brisbane houses have had the highest growth rate in the region of 40 per cent over three years, or 12 per cent annually,” Mr White said.
“The last three to four years have seen a change in a relatively long-standing historical trend – SEQ growth previously tracked with or underperformed the rest of Australia, it’s now growing at a dramatically higher rate.”
MILLION-DOLLAR SUBURBS SET TO SURGE ACROSS AUSTRALIA
The number of Australian suburbs with an average house price of $1 million or more is expected to increase significantly in the coming year, according to a new analysis.
Currently, there are 857 million-dollar suburbs in Australia – four times the number in 2014 and 17.5 per cent more than last year. Ray White predicts that approximately 99 new suburbs will join this exclusive club over the next 12 months if current growth trends continue.
“Thirty of these will come from NSW, 24 from Queensland, and 18 from Victoria, which means Queensland has a very high probability of overtaking Victoria as the state with the second most count of million-dollar suburbs,” Ray White said.
New South Wales continues to lead the nation with 358 million-dollar suburbs, more than double any other state. Victoria holds second place with 176 suburbs, closely followed by Queensland with 174.
Queensland has experienced the most rapid growth in million-dollar suburbs over the past decade, increasing from just seven in 2014 to 174 in 2024, a 25-fold increase. The Australian Capital Territory has seen the second-highest growth rate, with its count of million-dollar suburbs rising from six to 70 over the same period.
Suburbs expected to break the $1 million mark in the coming year include Narara, Erskine Park, and Springwood in NSW; Albion, Broadmeadows, and Brooklyn in Victoria; and Keperra, Chermside West, and Salisbury in Queensland.
In Western Australia, Perth suburbs such as Kingsley, Mullaloo, and Greenwood are projected to join the million-dollar club. South Australian suburbs like Panorama, Hallett Cove, and Woodcroft are also expected to see significant property value increases.
The ACT is experiencing growth as well, with Dunlop, Ngunnawal, and Macgregor likely to exceed the $1 million threshold. In Tasmania, Hobart suburbs including Kingston, Claremont, and Geilston Bay are anticipating house prices climbing beyond $1 million. This surge in million-dollar suburbs reflects the broader trend of rapidly increasing property values across Australia. Despite economic challenges, the housing market continues to show resilience and growth, particularly in desirable suburban areas.
As more suburbs join the million-dollar club, questions arise about housing affordability and the long-term implications for Australia’s property market. The trend also highlights the growing disparity between different regions and the increasing concentration of wealth in certain areas.
Real estate experts suggest that factors such as location, infrastructure development, and lifestyle amenities will continue to drive property values in these emerging million-dollar suburbs. However, they also caution that such rapid price growth may not be sustainable in the long term and could lead to market corrections in the future.
SIX KEY FACTORS TO CONSIDER WHEN CHOOSING AN INVESTMENT PROPERTY THIS SPRING
With Spring selling season just around the corner, it can be a great time for buyers to find an investment property. However, selecting the right investment property requires careful consideration of several factors. Here are six things to look out for when choosing an investment property:
Capital growth refers to the increase in a property’s value over time. To assess this potential, start by looking at median sale prices in your target suburb. Analyse price trends over the past few years and compare that to how median prices have changed over the past 20 or more years. You can also consider any future development plans in the area that may boost property values.
A property’s ability to generate income is crucial for investors, as that money can be used to pay off mortgage on the property. If your yield is higher than your repayments – or at least the interest component – then you might have a positively geared property. Investigate the area’s rental demand and vacancy rates to ensure a steady flow of tenants. Research median weekly rents and potential growth rates to get a clearer picture of your rental income over time. Aim for a steady, reliable rental income that covers a significant portion of your property expenses.
The old adage “location, location, location” holds true for investment properties. Look for properties that are close to public transport, schools, shops, and amenities. Safe neighbourhoods with positive growth indicators are ideal. Also, keep an eye on upcoming infrastructure projects or developments that could boost the area’s appeal. Typically, the best investment locations are areas where owner-occupiers want to live in.
The choice between houses and apartments can significantly impact your investment. Consider the target demographic of the area, such as families, students, or young professionals. Typically, houses offer higher capital growth potential, while apartments come with lower entry costs. However, apartments may have additional costs such as strata fees. The key is to match the property type to the location and target tenant demographic. For example, don’t buy an apartment in an area where families want large homes.
Age and condition of the property
The age and condition of a property can affect ongoing costs and potential returns. Newer properties may require less maintenance but offer lower depreciation benefits. Older properties might need renovations but could have character appeal. Always conduct professional building and pest inspections to avoid unexpected surprises.
Even as an investor, it’s important to think like a potential home homeowner. Look for properties with practical layouts and designs, plenty of natural light and ventilation, additional bathrooms or ensuites and garage or off-street parking. Features such as a home office space or modern appliances and fixtures can make a property more attractive. Consider what features would make the property stand out to potential buyers down the track.
SELLING YOUR INVESTMENT PROPERTY WITH A LEASE IN PLACE THIS SPRING
Selling an investment property with a tenant in place can be a complex process. However, with careful management, it can be a successful transaction that benefits both the seller and the tenant.
As a landlord, there are several things to consider when deciding to sell a property with a current lease this Spring. Here are some tips to guide you through the process:
The first step is determining whether the numbers make sense to the seller. Conducting a desktop analysis to get a sense of the property’s market value and its potential return on investment is crucial. This analysis will help you decide if selling with a tenant in place is the best financial move.
It’s important to compare the potential sale price with and without the tenant to ensure you make an informed decision. Oftentimes selling with a tenant in place makes the property attractive to investors, but not for owner-occupiers.
Assess the tenant’s willingness to cooperate
Having a good relationship with the tenant is crucial in these situations. The property manager may be responsible for day-to-day management, but the agent handling the sale should take the lead in building a relationship with the tenant. This involves discovering what is happening in their lives and how a potential sale could benefit them. For instance, if the tenant is looking to move to a different area, they may be interested in terminating the lease early without any penalties. The seller could also offer to cover the cost of a cleaner during the campaign to help them.
If the tenant is uncooperative, going to market with them in place may be challenging. A poorly presented property with limited access will likely negatively impact the level of interest you might receive.
In some cases, tenants may approach the seller with interest in purchasing the property. While this can be an attractive proposition for some sellers, it is often not in their best interests. The tenant may make an offer lower than market value, justified by the fact that an agent’s selling fee would not apply.
Obtain an independent appraisal
To ensure the seller gets fair market value for their property, it is best to obtain an independent appraisal. An appraisal provides an unbiased assessment of the property’s value, helping set a realistic asking price.
Market the property effectively
When marketing a property with a tenant in place, clear communication and strategic planning are essential. Highlight the benefits of the existing lease to potential investors, such as immediate rental income and a reliable tenant. Ensure the property is presented well in marketing materials, with high-quality photos and detailed descriptions. Additionally, coordinating with the tenant to schedule viewings that minimise disruption can help maintain a positive relationship and ensure the property is shown in the best light.
Maintain transparency and communication
Throughout the process, maintaining transparency and open communication with the tenant is crucial. Keep them informed about the sale process, potential viewings, and any changes that may affect their tenancy. Respect their privacy and rights as tenants while ensuring they understand the benefits of cooperating with the sale. This approach helps build trust and can lead to a smoother transaction.
Prepare for a transition
Finally, prepare for a seamless transition once the property is sold. Ensure all legal requirements are met, including transferring the lease agreement to the new owner if the tenant remains in place. Provide the new owner with all necessary information about the tenancy, including lease terms, rental payment history, and any maintenance issues. This preparation helps facilitate a smooth handover and ensures the tenant’s experience remains positive.
WILL BNPL OR ONLINE BETTING IMPACT MY MORTGAGE APPLICATION?
When applying for a mortgage, lenders scrutinise your financial habits to assess your creditworthiness.
Gambling activities, such as online betting, or using ‘buy now, pay later’ (BNPL) can potentially impact you negatively in the eyes of a lender.
Lenders view regular gambling, even small amounts, as a red flag. Online betting platforms in particular are closely scrutinised.
- Frequency matters: Regular gambling, even small amounts, can potentially lead to an automatic decline.
- Large withdrawals at casinos or pubs, especially late at night, signal risky financial behaviour to a lender.
- Even modest betting is viewed more negatively than other discretionary spending.
To improve your application, consider pausing or significantly reducing gambling activities for at least 3-6 months before applying.
While BNPL services may seem harmless, they can impact your borrowing capacity quite significantly.
- BNPL is considered a form of debt, even if paid off regularly.
- Similar to credit cards, BNPL limits affect overall borrowing capacity.
- Opening a BNPL account can reduce your credit score by up to 80 points due to credit checks.
To strengthen your application, consider reducing or eliminating BNPL and any associated accounts. Ahead of applying for a mortgage, it’s important to take stock and have a good hard look at the way you are spending your money.
Lenders want to see that you are a responsible spender with the means to pay them back. They want to see that you can save money, manage debts well and not spend more than you earn.
A great place to start is to talk to a mortgage broker who can sit down with you and look at your current financial habits and see where you can improve.
Once you’re in a strong position, then you can look to apply for finance.
MOTORBIKE LOAN OR PERSONAL LOAN?
When it comes to financing a motorbike, choosing between a motorbike loan and a personal loan can be a close call. Each option has its advantages and drawbacks, and understanding the differences can help you make the right choice for your situation.
Specific Purpose
Motorbike loans are specifically designed for purchasing motorbikes. They typically offer terms and conditions tailored to motorbike purchases, which can be beneficial if you’re looking to finance a vehicle.
Lower Interest Rates
Generally, motorbike loans offer lower interest rates compared to personal loans. Because these loans are secured by the motorbike, lenders often provide better rates, making them a cost-effective option for financing.
Flexible Terms
These loans often come with flexible repayment terms, allowing you to choose a duration that suits your financial situation. Terms usually range from 1 to 7 years, depending on the lender.
Secured Loan
Motorbike loans are typically secured loans, meaning the motorbike itself acts as collateral. This can result in lower interest rates but also means that the lender can repossess the motorbike if you default on the loan.
Easier Approval for Motorbike-Specific Lenders
Specialised motorbike lenders may offer easier approval processes for those specifically looking to finance a motorbike. They are familiar with the market and can provide tailored advice.
Unsecured Financing
Personal loans are unsecured, meaning they do not require collateral. This makes them a flexible option for purchasing a motorbike, but it also often results in higher interest rates compared to secured loans.
Versatility
Personal loans can be used for a variety of purposes, not just motorbike purchases. If you’re considering using the loan for additional expenses related to the motorbike or other purchases, a personal loan offers greater flexibility.
Higher Interest Rates
Personal loans generally come with higher interest rates because they are unsecured. Lenders assume more risk without collateral, which can translate into higher costs over the life of the loan.
Loan Terms
The repayment terms for personal loans can be similar to those of motorbike loans, typically ranging from 1 to 7 years. However, the exact terms will vary based on the lender and your credit profile.
Approval Process
The approval process for personal loans can be more stringent, particularly if you have poor credit. Lenders may require a detailed assessment of your financial situation to determine your eligibility.
Ultimately, the choice between a motorbike loan and a personal loan depends on your financial situation, credit profile and preferences. The best place to start is by talking to a finance broker who can help you compare your options.
FOUR FACTORS THAT INFLUENCE YOUR CAR LOAN INTEREST RATE
When securing a car loan, you might be surprised to learn that your interest rate can vary significantly from someone else purchasing the same vehicle with similar financing. Understanding the factors that influence your interest rate can help you secure a better deal. Here are four factors that lenders consider when determining your car loan interest rate:
Your credit score and history play an important role in determining your interest rate. Lenders use this information to predict your future financial behaviour. A higher credit score typically results in a lower interest rate, as it demonstrates your reliability in managing debt. To improve your chances of securing a favourable rate:
- Review your credit report regularly and address any errors.
- Pay all bills on time to build a positive payment history.
- Reduce outstanding debts, especially in the months leading up to your car purchase.
- Avoid applying for new credit cards or loans before seeking car financing.
The amount you can put down upfront significantly impacts your interest rate. A larger down payment reduces the loan-to-value ratio, making you a less risky borrower in the eyes of lenders. Benefits of a substantial down payment include:
- Lower interest rates due to reduced risk for the lender.
- Smaller loan amount, resulting in lower overall interest paid.
- Improved chances of loan approval, even with less-than-perfect credit.
Loan term
While it might be tempting to opt for a longer loan term to reduce monthly payments, this strategy often results in higher interest rates and more money paid over the life of the loan. Consider the following:
- Shorter loan terms typically come with lower interest rates.
- You’ll pay off the car faster, reducing the total interest paid.
- Aim for the shortest term you can comfortably afford to maximise savings.
Income and debt-to-income ratio
Your income and debt-to-income ratio are crucial factors in determining your interest rate. Lenders want to ensure you have sufficient income to cover your loan payments comfortably. To improve your position:
- Provide proof of stable, sufficient income.
- Reduce existing debts before applying for a car loan.
- Choose a car that fits comfortably within your budget.
- Consider paying off small debts to improve your debt-to-income ratio.
