Welcome to my October newsletter!
Freshly published property data has shown the vast differences in price, growth and rental yields in our capital cities. This has sparked conversations around property investment and whether it's better to invest in houses or apartments.
For those of you who’ve been asking (and those who’ve been thinking about it), I’ve included a comparison cheat sheet that looks at investing in houses or units. This is good general knowledge, and a must-know for anyone in the game.
I’ve also rounded up some quality data on median rent prices and shed some light on a little known Australian world-record.
Enjoy reading and feel free to get in touch if you want expert advice about your finances.
Call me now on: 0402 408944
How is Property Performing Around Australia?
The latest median property price data from REA shows Australian capital cities remain in their own property cycles with some growing and others slightly declining.
Sydney remains the most expensive city with a median price of $790K with a price drop of 3.1% Year-on-Year (YoY) in October. Conversely, the market is running hot in Hobart, with 11.2% YoY growth.
Median Property Prices - October 2018
What is the Best Investment - House or Apartment?
When it comes to property investment, one of the biggest decisions you need to weigh up is whether you want to buy a house or an apartment.
Here’s a simple way to think about it to make the decision easier.
Investing in houses has its perks:
• Ability to make home improvements without approval from an owners corporation
• Greater potential capital gains and growth
• Houses attract families and tenants who may stay longer
• More scope for improving the value of your investment through renovations.
Alternatively, apartments have some upsides that houses don’t:
• Cheaper than houses • Strata schemes make insurance, maintenance and upkeep easier
• Apartments in sought after locations can attract great tenants who want to live in an area with a certain lifestyle.
What Does the Data Say?
In its latest quarterly report, Pricefinder found that in most capital cities, apartments actually had a higher rental yield than houses. Darwin was a particularly strong performer, with higher yields for houses and units than all other capital cities.
Capital City Rental Yields - Q2 2018
How much is Rent in most Capital Cities?
In a similar report, Pricefinder has outlined median rent prices across the capital cities. This is useful information, regardless of whether you’re looking to invest, buy or even rent!
Capital City Median Rent - Q2 2018
We’re In The Record Books!
Did you know it's been 27 years since Australia's last recession?
Well done Australia, this is a world record and it’s driving other countries mad with envy!
The last release of GDP data from the Australian Bureau of Statistics was for the June Quarter and it reported a 0.9% monthly GDP rate and a 3.4% annual rate.
Most analysts don’t anticipate these numbers changing much for Q3 and this means we’re likely to continue our record-breaking streak. And in a financial-coincidence, the RBA is expected to keep rates on hold for the 27th consecutive month when it meets in November.
That’s all for this month! Remember, I’m always on my mobile so you can call at any time for more investment tips or home loan help.
