Tag Archives: housing
Residential rents in Australian cities grow at slowest pace on record
Over the past month residential rental rates in Australian cities have increased at their slowest pace on record, the latest data shows. Sydney and Hobart have seen the strongest rental growth over the past year, according to the data from the May CoreLogic RP Data index report which, according to the firm indicates a disconnect between demand and supply. The data also shows that rents in Perth, Darwin and Canberra have dropped by 4.5%, 5.5% and 0.6% respectively and overall combined capital city rental rates increased by just 0.1% in May. Combined capital city rental rates are recorded at $488 per week and on a quarterly basis they have increased by 0.6% and by 1.5% over the past 12 months, down from and annual increase of 2.2% a year ago. The report also shows that with home values growing faster than rents, gross rental yields continue to edge lower. ‘Sydney stands out as seeing strong population growth which is creating more demand for accommodation in the city,’ said index report author Cameron Kusher. Although Sydney and Melbourne recorded low rental yields, Kusher said that investors in these two cities are clearly not targeting rental returns. ‘It appears to be purely a capital growth play and likely to remain this way, at least for the time being,’ he added. For a more balanced approach to property investment he recommends investors look to markets like Brisbane or Adelaide which currently appear to be more financially attractive, however buyers should not expect value growth to match that of Sydney or Melbourne any time soon. According to Kusher, the annual rate of rental growth is now the slowest on record. He said the sluggish rental appreciation can likely be attributed to the ongoing boom in dwelling construction across Australia's capital cities accompanied by record high participation in the housing market from investors. Continue reading
New homes in UK seen as cramped and of poor quality, new research has found
The UK government has pledged to build hundreds of thousands of much needed new homes but it seems that this is not what home owners want with the majority preferring older properties. People think new homes are too small, characterless and of poor quality with new research finding that just 21% would actually buy a new build and 47% want a home that is 10 years old or older. The survey carried out for the HomeOwners Alliance found that 38% think that a low standard of build quality is the main disadvantage of a new home. A third were put off by the size of rooms and other dislike included the lack of character and smaller gardens. ‘We need more new homes, but they have to be homes that people want to live in, not homes that are quick, easy and cheap for house builders to throw up,’ said Paula Higgins, of the HomeOwners Alliance. ‘What we need to solve the housing crisis are quality homes of character and space, and challenge the housing industry to deliver. After the war, they built homes fit for heroes. All we want is homes fit for home owners. Homes shouldn’t be built just for a quick profit, but to last for generations to come,’ she added. There are however, positive aspects to new homes, the research also found. For example no old pipes on show and no hidden problems. And half of people believe the biggest benefits of a new build were the low maintenance costs and better energy efficiency. Kim Vernau, of BLP insurance, which funded the research, said that there is reasoning behind the perception over quality. ‘With activity in the construction industry on the increase as local authorities and developers attempt to meet the housing shortfall, there is a real risk that building standards will slip,’ said Vernau. ‘Consumers want peace of mind and reassurance that the home they are purchasing is fit for purpose and built to last rather than simply chasing a house-building statistic,’ added Vernau. Official figures show about 120,000 homes were completed last year, an increase on 2013 but still only half the 240,000 experts say are needed to deal with the UK’s chronic housing shortage. The Government has pledged to ease the supply shortage by building 200,000 cut-price starter homes. Prime Minister David Cameron said first time buyers under 40 would be able to buy these houses at a 20% discount to ensure everyone who works hard can have a home of their own. Continue reading
UK buyers with pension pots favouring property as an investment, it is claimed
Pensioners in the UK have more investment opportunities than ever before due to pension rule changes and many are looking to property as an alternative to annuities, shares and bonds, it is claimed. Since pensioners were granted full control of their retirement savings in April, some 70% have opted to drawdown all or part of their retirement wealth and domestic and international property is topping the investment stakes. Compared to investments in the stock market, property remains a far more predictable and stable option in the longer term according to the latest Global Real Estate Outlook report from property investment company, IP Global. IP Global’s findings show a clear price surge in cities like Berlin, which saw a 10.01%rise, and the central wards of Tokyo, where investors have achieved a 13% return so far this year. In addition, growing rental demand in cities like Brisbane means that investors can expect a yield of 5.4% per year. Supported by the strong British pound against the Euro and Japanese Yen, UK investors can not only obtain far more favourable purchase prices but also secure a continued income. Domestically, London and most recently, Manchester, are leading the way, according to the report, with prices in Greater London increasing by 12% in the last year. In Manchester, a new property is still valued at less than half the average seen in London, however, prices are expected to rise to close this gap, with new projections putting Manchester price growth at a strong 26.4% up to 2019. With these new found freedoms, there has been a sharp rise in demand from pensioners for experienced and qualified advice on what retirees can do with their savings as they decide how to make use of their pension pot. Continue reading
