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Investor floodgates open with rising tide of rentals
CHANGING TRENDS: While rental costs are climbing, home prices are falling making Brisbane a buyer's market. Source: The Courier-Mail
BRISBANE'S great summer flood is helping to turn the city's property market into an investor's delight.
With thousands of people seeking accommodation while their homes are repaired - and the number of listings nearly 10 per cent lower than a year ago - rents are expected to rise quickly.
That is one of the main findings of a new report, to be released today by RP Data, detailing the effects of the disaster on the real estate market.
Nearly 8000 homes were completely covered by water when the Brisbane River peaked on January 13 and another 10,000 partially inundated.
"The increasing demand is likely to create upward pressure on rental rates as those displaced persons look for temporary accommodation over the next six to 12 months," says the report.
"The issue is that rental houses will be in quite short supply and many may have to opt for a unit instead."
"Flood-free" homes targeted at investors are being advertised in riverside suburbs, as well as some properties which were inundated and are now being promoted as bargains.
While rental costs are climbing, home prices are falling - making Brisbane a buyer's market, a second report shows.
Higher rents, combined with lower prices, are lifting rental yields for landlords. Yields in Brisbane - 4.4 per cent for houses and 5.1 per cent for units - are now the third highest in the country after Darwin and Canberra.
After outstripping other capitals in price rises between 2002 and 2008, Brisbane has been one of the worst performing cities in the country, along with Perth, for the past two years.
- by Daryl Passmore
- From: The Sunday Mail (Qld)
- April 10, 2011 12:00AM
CHANGING TRENDS: While rental costs are climbing, home prices are falling making Brisbane a buyer's market. Source: The Courier-Mail
BRISBANE'S great summer flood is helping to turn the city's property market into an investor's delight.
With thousands of people seeking accommodation while their homes are repaired - and the number of listings nearly 10 per cent lower than a year ago - rents are expected to rise quickly.
That is one of the main findings of a new report, to be released today by RP Data, detailing the effects of the disaster on the real estate market.
Nearly 8000 homes were completely covered by water when the Brisbane River peaked on January 13 and another 10,000 partially inundated.
"The increasing demand is likely to create upward pressure on rental rates as those displaced persons look for temporary accommodation over the next six to 12 months," says the report.
"The issue is that rental houses will be in quite short supply and many may have to opt for a unit instead."
"Flood-free" homes targeted at investors are being advertised in riverside suburbs, as well as some properties which were inundated and are now being promoted as bargains.
While rental costs are climbing, home prices are falling - making Brisbane a buyer's market, a second report shows.
Higher rents, combined with lower prices, are lifting rental yields for landlords. Yields in Brisbane - 4.4 per cent for houses and 5.1 per cent for units - are now the third highest in the country after Darwin and Canberra.
After outstripping other capitals in price rises between 2002 and 2008, Brisbane has been one of the worst performing cities in the country, along with Perth, for the past two years.
