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Thursday, November 06 2014

The most recent Real Estate Institute of Queensland (REIQ) statistics show that rental markets remain tight, with south-east Queensland’s Logan and Ipswich becoming strong rental hotspots for investors.

REIQ CEO, Antonia Mercorella, said that the latest Residential Rental Survey, conducted at the end of September, found that just four of Queensland’s 16 major regions recorded significant changes in vacancy rates.

She noted that this is evidence of a two-tier residential rental market across the state.

“Logan and Ipswich are emerging as the south-east’s rental hotspots as tenants move further afield from inner-Brisbane in search of more affordable rents,” Mercorella said.

“For the rent you’d pay for a three-bedroom house in Brisbane, you can get a four bedroom house in Brisbane’s outlying areas for up to $65 less a week.”

She noted that, for this reason, Logan and Ipswich are now very tight rental markets with the lowest vacancy rates in the Greater Brisbane region.

By the close of September, Brisbane City LGA recorded a 2.3% vacancy rate, relatively stable since the end of June.

“Brisbane’s middle to outer suburbs – those 5-to-20 kilometres from the CBD - recorded a slight easing in vacancy levels, up 0.2% to 2% at the end of September,” she said.

“The city’s inner suburbs, on the other hand, recorded a vacancy level of 2.9%, down from 3.4% at the end of June.”

The Residential Tenancy Authority’s records of median weekly rents for the September quarter also noted relatively steady rents across the LGA, with greater Brisbane returning to a vacancy rate seen 12 months ago – 1.7%.

“Vacancy levels in the Moreton Bay and Redland City council areas remained relatively steady over the three months to September, with both recording 1.8%,” she said.

“While not quite as tight as Logan and Ipswich, strong investor activity and tenant demand are setting the scene for competitive rental markets in both LGAs.”

Logan City’s vacancy rate currently sits at 1.5%, with Ipswich City at 1.6%, both down 1.4%.

SOURCE: Property Observer

Posted by: Greg Carroll AT 05:44 am   |  Permalink   |  Email
Thursday, November 06 2014

Paying off debt is a good goal to have. But doing it to the exclusion of an investment plan will most likely see you well short of where you want to be in retirement.

It takes significant time to build substantial wealth, 20 - 30 years. So focusing just on clearing debt and hoping you can somehow pull it together in the last 5-10 years of your working life is going to see you come up well short.

But according to a new survey by REST Industry Super Australians are doing just that.

Only 15% of 35 to 49 year olds are prioritising long-term savings, while property debt is the dominant priority for this age group.REST Industry Super’s latest whitepaper, What’s Next, surveyed 1,000 Australians aged between 35 to 49 year on the state of their financial health.

Of the respondents, 71% are paying off a mortgage, which is their main financial aim. Long-term savings are the fourth highest priority, after paying off debt and short-term savings.  Short-term savings, including holidays and education costs, was the top priority for those without mortgages.

REST CEO Damian Hill said that it’s encouraging to see this group take control of their immediate finances, including getting their mortgage under control. However, he said that it seems to be to the detriment of planning for the future.

“We know that relying solely on employer super contributions is unlikely to support the kind of lifestyle most Australians want in retirement, so it’s important to prioritise saving for post-work life as well,” Hill said.

“This is even more the case since the recent government announcement to delay the increase in the superannuation guarantee contribution rate to 12% until 2025.”

The 8% of respondents who owned their home outright prioritised retirement as their most important goal.

“Focusing on paying off the house means that over half (51%) of Australians are relying solely on the compulsory super system to save for their retirement – at the very stage of life when they are likely to be in the best position to make additional contributions on top of what their employer is paying,” Hill said.

“Planning for retirement doesn’t mean your mortgage has to suffer, but it is important to balance your financial priorities to ensure long-term savings aren’t being forgotten in the face of more immediate needs.”

However, some 6% of the respondents were saving for property in different ways. Of this small portion, some were using property investments, including their home, as a retirement plan.

Posted by: Greg Carroll AT 02:28 am   |  Permalink   |  Email
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