We’ve known it for some time now, but here’s the proof…  if you want your investments to work hard for you, these are the areas to put your money!   

Affordability, plenty of options, good rental demand and high yields – what more can an investor ask for ???

Investor alert: The south-east Queensland suburbs with the highest rental returns

Ellen Lutton, Domain

23 July, 2018

Units in Logan City are yielding 7.8 per cent, according to new data from Domain. Photo: Ray White Logan City

South-east Queensland’s highest yielding investment properties are no longer in Brisbane, but in the outer suburbs of Logan and Ipswich, new data shows.

Suburbs like Bellbird Park and Bundamba in Ipswich, and Logan Central and Woodridge in Logan, have estimated rental yields of more than seven per cent for units, the latest Domain Rental Report has found.

Brisbane has some of the highest rental yields in the country, averaging four to five per cent.

This two-bedroom townhouse at 6/360 Redbank Plains Road, Bellbird Park, is for sale for $199,000 and yields seven per cent, its agent says.

However in Logan Central, where the median rent for a unit is $260 a week, the estimated rental yield is a whopping 7.8 per cent. In nearby Woodridge, the yield for units is 7.1 per cent, with a median weekly rent of $255.

Tony Miller of Ray White Logan City says there are plenty of savvy investors who have already cottoned on to opportunities in the area.

“That’s one of the beautiful things around these suburbs — there’s so many affordable units and townhouses and they represent great investments because of those rental yields,” he says.

This brand new duplex at Bellbird Park is renting for $260 a week. Photo: Ray White Taigum

“Also, Logan is affordable — you can buy a unit for under $175,000 or $180,000 and it’ll rent for $250, $260 a week — but importantly, the demand for rentals is there, it won’t sit there vacant.”

He says a lot of interstate investors see value in Logan, given its proximity between Brisbane and the Gold Coast.

“Interstate investors recognise that an area between two large cities that has a cheap price point and high yields is valuable and will keep growing,” he says.

Brisbane’s highest-yielding suburb for houses is Ellen Grove, in the south-western outskirts. Photo: Glenn Hunt

“They look at the prices, look at the yields and say, ‘It’s near a train station and I can drive to Brisbane in half an hour’, it’s got a lot of potential for growth.”

Interstate investors also had a strong presence in another high-yielding suburb, Bellbird Park, on the eastern outskirts of Ipswich, where units are yielding an impressive 7.3 per cent.

Bill Woodard of Harcourts Springfield said Melbourne and Sydney buyers have been buying and even building duplexes here because of the excellent rental return.

“Investors look at the figures and go for it. They’re interested in the brand new stuff where they get great rent, which is generally duplexes and that kind of thing,” Mr Woodard says.

“They can get a three-bed unit for $215,000 and it will rent for $290 a week. You just don’t get that [return] for houses.”

He said the duplexes were not popular buys with owner occupiers, but investors from Sydney and Melbourne were happy to take them on.

“Because units aren’t popular with local buyers, they’re cheap to buy. They can be hard to move but down south, duplexes are really common, so the interstate investors are comfortable buying them. Then they’re easy to rent.”

For houses, Leichhardt, Laidley and Riverview give some of the top returns, with yields of 5.8 and 5.7 per cent.

The highest yielding inner city suburb for unit rentals was Brisbane City, where the median weekly rent is $495, with a yield of 5.8 per cent.

Ellen Grove, 20 kilometres south west of the CBD, was Brisbane’s highest yielding suburb for houses, with a yield of 5.5 per cent.

Top yielding suburbs for units:

Logan Central: 7.8%

Bellbird Park: 7.3%

Bundamba: 7.3%

Woodridge: 7.1%

Loganlea: 6.8%

Top yielding suburbs for houses:

Leichhardt: 5.8%

Laidley: 5.8%

Riverview: 5.7%

Waterford West: 5.7%

One Mile: 5.6%

Want to know more about investing in SEQ’s

highest-yielding suburbs?

Give Sonia a call today

0403 309 136

A great “real-life” situation here which could potentially affect a number of our clients… Well worth a read in our opinion – and, as always, a good reminder to do your homework before commencing any building works!

Check pension rules before building a granny flat

George Cochrane, The Sydney Morning Herald

January 18, 2018

I’m 72, receive a full age pension and have assets of $175,000. My wife is in a nursing home. We own our house and I plan to build a granny flat in the backyard. Would the granny flat be considered an asset and included in the assets test and would it affect my age pension or would it be considered as part of the house and therefore not a separate asset? G.C.

When an age pensioner rents out a granny flat to anyone other than a member of the immediate family, it will be counted by the assets test and its value will be based on a pro-rata percentage of the floor space of the overall property. For example, if the flat covers an area equal to 30 per cent of the total area of the house and flat, then 30 per cent of the value of the property will be counted.

Illustration: Michael Mucci

If you have a home in a capital city, this asset value could amount to many tens or even hundreds of thousands of dollars and would obviously affect your pension. Furthermore, the net rent, after expenses, is counted by the income test. And when the property is eventually sold, there will be a capital gains tax liability in proportion to the area rented and the length of time it was rented.

However, if you take in a lodger, and the area being rented is an integral part of your home, for example, a room with an en suite and a shared kitchen and lounge area, it will not be counted by the assets test. Again the net rent would be counted by the income test but you can choose a simpler formula that counts expenses as 30 per cent of the rent. A CGT liability again arises in proportion to area and time.

In your case, I assume you are planning to rent the flat to obtain income. For other readers, a granny flat can be built with other intentions, typically where the parent(s) of an adult child might build a flat above or onto their child’s home, to live there rent-free for life. In such a case, the usual “gifting rules” do not apply but there is a “reasonableness rule” or formula that determines how much can be spent before Centrelink determines that the parents are depriving themselves of their assets. Also, the CGT exemption for a main residence continues to apply in such cases.

Planning a Granny Flat in your backyard too? 

You know who to call…

Sonia Woolley – 0403 309 136

Housing affordability is an increasing issue in many regions of Australia and it would appear that it’s not just us Aussies that are searching for solutions.  Read here how many US states are now changing laws and offering incentives to encourage the building of Granny Flats…

California Leads Nation In Granny Flat Permits

Hoa Quách, Patch Staff

Mar 24, 2018

California saw the biggest increase in permits for accessory dwelling units among U.S. states.

CALIFORNIA — California saw a dramatic increase in the number of granny flat permits issued last year, the same year the state implemented three new laws to tackle the housing affordability problem. California saw the biggest increase in permits for accessory dwelling units among U.S. states with a 63 percent increase in 2017, according to a housing report released by statistics group, ATTOM Data Solutions.

The information, which was released Friday in the Housing News Report, said California implemented three laws in “an attempt to streamline ADU development.” Senate Bill 1069, Assembly Bill 2299 and Assembly Bill 2406 encouraged “cities to ease some of the common hurdles to the permitting and building of accessory dwelling units (ADUs) — also known as granny flats, in-law units or just second units — most notably parking requirements, setback requirements, and utility connection fees,” the report said.

“As affordability worsens, the incentive for homeowners to build ADUs becomes greater. But the cities just have to let them. That’s the only barrier,” said Holly Tachovsky, CEO at Buildfax, in the report. “Americans are now spending more money remodeling homes than they are building new ones.

Statewide, more than 4,300 ADU permits were issued to builders and property owners.

The report said Santa Barbara saw the biggest increase in ADU building permits among 30 major California metropolitan areas. Oxnard-Thousand Oaks-Ventura, Los Angeles-Long Beach-Anaheim and San Diego followed, the report said.

Compared to other states, Oregon saw the second biggest increase in ADU permits with 1,682 issued. Washington at 1,110, Florida at 944 and Marlyand at 872 followed.

Thinking of building a Granny Flat to add value or

space to your home?  It’s time to contact your local experts!

Give Sonia a call for further info on 0403 309 136

Got a granny flat in your backyard and wanting to rent it out?  It’s a great way to bring in extra income, but before you begin there are a few things you need to know…and remember that the rules can vary between councils too!

Thousands of Brisbane homeowners breaking law with granny flats on their land, expert warns

Jim Malo, Domain

13 March, 2018

Thousands of Brisbane homeowners are acting illegally by drawing an income from a dual-living arrangement on their property, a property law expert has warned.

Many homeowners may not be aware that renting out a granny flat or separate area of a house is in most cases considered illegal by the Brisbane City Council, warned Darryl Richards, director of Certus Legal Group.

Mr Richards said his team had consistently represented homeowners unwittingly caught out by the regulation.

The humble granny flat in most cases doesn’t require planning approval but Mr Richards says to rent one out, it needs to be approved by council.

“It’s widespread across the city,” he said. “We’ve done dozens and dozens and dozens in the past couple of years.”

The rule for granny flats was clearly outlined on the council website: you don’t need a development application if it’s within certain specifications, but if you wanted to rent it out to someone who isn’t a member of your “household”, that is where it would become an issue.

“A household is a group of people who intend to live together in the long term and share the common necessities of life,” Mr Richards said. The granny flat page on the council website also defines what it considers a household.

Mr Richards says he’s represent dozens of clients who have had council officers crack down on their illegal use of granny flats.

Part of the issue is that the rule not only extends to stand alone granny flats but anything that constitutes as more than one “household” on a single property.

“They need to have access to the entirety of the dwelling, they can’t have keys to just one part,” Mr Richards said.

In his opinion that left renting out separate, self-contained floors or flats totally off-limits, and renting out rooms a separately a grey area.

However, rental expert Angela Ballard said this would be difficult to prove.

 “I can’t see how they’d have a leg to stand on if someone took a room in your own household and you were sharing a kitchen in a bathroom in your house,” Dr Ballard said.

“How would you police that? If you share a fridge, how are you going to show you aren’t sharing the necessities for life?”

Mr Richards said until December last year, there was a clear course of action once council officers came knocking.

Everything within the home needed to be brought up to council standards for a multiple unit dwelling and an application lodged with council for a material change of use. That cost about $8500 before December, but now it can run up to $30,000.

“[Affected homeowners now] just cease the use. When it was $8500 it was viable and worthwhile to keep doing it,” Mr Richards said. “I think we may have a way through, but we’d have to test that through court and no one’s been willing to spend the money to try it.

“What we tend do now is sue the person who sold it to them and had it set up to [rent out].”

He was of the view that the vendors exploited the purchasers by using an illegal use as a selling point.

“There were definitely some builders and marketers making higher profits by saying you could rent it out and make a certain profit,” Mr Richards said.

Dr Ballard said the council oversight was necessary to prevent renters entering into unsafe living situations or being exploited.

“If it doesn’t cover off all the legal requirements, then yeah they should be done! They’re making money off of people whose lives are in their hands,” she said.

“It’s all very well for someone who owns a property to throw something up in the backyard and then make money off of people. That brings certain responsibility.”

Wanting up-to-date info on granny flats in YOUR area? 

We are always up to date with any changes

and we’re here to help!

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A new year brings opportunities for all in the ever-changing property market – maybe this is the year for you to snag yourself a great investment bargain or make a nice profit through a smart renovation.  Whatever your plans for 2018, you need to know what type of property to buy and which area you should buy in… and more importantly, which ones to avoid!

Property “bloodbath” in 2018: unit warning issued

High-rise apartments under construction in Brisbane. Picture: Marc Robertson.

Elizabeth Tilley, Fraser Coast Chronicle

2nd Jan 2018

BRISBANE’S oversupplied apartment market and parts of southeast Queensland’s housing sector are headed for a “bloodbath” in 2018, according to one property commentator.

Buyer’s agent and former valuer Anna Porter, principal of Suburbanite, has some blunt advice for unit investment holders in Brisbane – get out now.

“Steer completely clear of units,” she said.

“They’re incredibly oversupplied and there will be a bloodbath in the unit market over the next couple of years.

“Lending will tighten, values will retract and rent will be hard to maintain.”

One property commentator warns Brisbane’s unit market is headed for a “bloodbath”. Photo: Adam Armstrong.

The latest Urbis apartment report revealed 300 new units were sold in Brisbane in the September quarter of 2017, with the average sale price dropping more than $80,000.

Another 7100 apartments are expected to reach settlement in 2018.

Urbis property economics and research director Paul Riga said Brisbane apartments were still selling, even in the current market conditions.

“Established local developers with a reputation for quality product and strong networks are achieving great results,” he said.

“For the rest of the market, it is certainly harder than it was 18 months ago but sales continue to tick over quarter after quarter.”

Urbis property economics and research director Paul Riga.

But Ms Porter is not just concerned about the Brisbane unit market.

“Down the southeast pocket of Queensland, towards Logan and Ipswich, we’re going to start to see some pain I think towards the end of 2018,” Ms Porter said.

“We’re starting to see the local council cracking on a lot of the granny flats being illegally rented. A lot of people have purchased these properties with the idea of getting a dual income, but this is being stripped away from them.

“There is also a little bit of pressure on interest rates, and vacancy rates are creeping up.”

A house-and-land development in Logan, Queensland.

Ms Porter said there was also a lot of new stock coming to the market in the form of house and land packages.

“This is starting to push a huge amount of supply into the market,” she said.

Ms Porter predicts consistent growth for Brisbane house prices in the year ahead, with renovated houses likely to continue to sell well.

“A tip for young players – renovate in Brisbane,” she said.

“Renovated properties in Brisbane sell a lot better. Add value and you will see an uptick.”

Property commentator predicts steady growth for Brisbane house prices.

Need a helping hand or some friendly advice

before investing in 2018?

You know who to call!  Sonia Woolley – 0403 309 136

It can be pretty nerve-wracking waiting to hear what your home, investment or potential purchase is valued at!  Here’s a few useful pointers and tips that may help you to gain the result you are after…

Can you improve your property’s valuation?

Nicola McDougall, Domain

Whether you’re a homebuyer or a homeowner wanting to refinance, valuations can result in you uncomfortably sweating on that all-important final number.

But, while valuers are professionals who clearly know what they’re doing, are there any strategies to improving your valuation?

Should you highlight every single improvement when the valuer is on-site or is it best to leave them alone so they can get on with the job?

Herron Todd White national director Valuation Tony Higgs says it can be beneficial for owners to be on-site but you don’t want to be over-eager.

“Obviously we’re trying to get as much information as we can while we’re on-site and if the owner is constantly following us around and going, ‘This is the toilet. This is the laundry’, well, those sorts of things we can work out for ourselves,” he says.

“It’s those things that they’ve done recently that they want to point out to the valuer, which is great, and that’s the stuff we want to know.”

For properties that have been recently renovated, Higgs suggests owners mention the improvements at the start of the valuation process and then point them out once the valuer has moved inside the property.

Highlighting improvements which might be not immediately visible, such as solar panels, is also a good idea, Higgs says.

Higgs says being on-site during the valuation not only allows owners to provide relevant information to the valuer, it also helps them to understand the process.

Metropole Brisbane Director Shannon Davis meets valuers on-site to point out improvements as well as to provide information about comparable properties.

“For the owner, it’s always beneficial for them to be on-site because they can get an understanding of what  the valuer has done while they’ll out there,” Higgs says.

“If they’re there with the valuer at the time, and if there are issues that they want to raise, that’s the best time to flag them.”

And he’s not afraid to challenge a valuation that’s nowhere near his own research.

“There can be some valuations that are way off. We’ve challenged valuations before, especially near the turn of the market,” he says.

“You might have someone who’s just out of the odds who brings it in $20,000 or $30,000 under, but we’re at the market coalface day in and day out.”

One such valuation, Davis says, was a valuer who missed one bedroom entirely and therefore came in about $70,000 below the expected value.

Insisting on an on-site rather than kerbside or desk-top valuation could help to reduce mistakes and also potentially improve the end result, Davis says.

“I think wherever possible, it’s worthwhile to meet the valuer at the property and show them through the scope of works and bring a list of comparables as well,” he says.

“Also (challenging a valuation) might cost a little bit more… but spending money to get access to more money can be really worth it if you’re acquiring an appreciating asset.”

Ready to do your own research about the value of your property? 

Vision Property Group can point you in the right direction and share our knowledge of recent sales and listings in your area. 

Give us a call TODAY – Sonia on 0403 309 136