Daily Buzz: Tuesday, 11 June
By
PropertyBuzz, your daily dose of property news.
Queensland’s new rental laws are now in effect; what’s driving the uptake of rentvesting, and uncovering the most affordable suburbs in Australia’s biggest capitals
Welcome to Property Buzz! I’m Juliet Helmke. Today is Tuesday, 11 June.
– Queensland’s Stage 2 rental reforms took effect on 6 June 2024, including restrictions on rental increases and advance rent payments, expanded domestic violence provisions, and mandatory training for agents.
– Under the new laws, landlords cannot accept rent above the advertised price, and rents can only be increased once every 12 months, with the latter provision relating to the property, not the tenancy, so the limit applies regardless of whether there is a change
or tenant or lessor. A landlord can apply to QCAT for an order if they feel they are facing financial hardship due to rental increase limits.
– Confidentiality requirements under the domestic and family violence provisions have also been expanded, to enhance the safety and protection of tenants who have experienced domestic violence.
– More changes in the works, with the second phase of the state’s rental laws set to take place at a later date.
– Looking at first home buyer activity now, and new research has revealed that one in five first-time buyers are purchasing property to rent out, a trend known as rentvesting, which is reportedly being driven by millennials. The study showed they make up 46 per cent of new property investors with the Commonwealth Bank in 2023.
– The Australian Bureau of Statistics reported a 21.5 per cent increase in new investor loans in February, with millennials leading the charge. They are reportedly setting their sights on more affordable locations in the regions or the city fringe to make their purchases, getting on the property ladder while continuing to pay rent for their own residence.
– The increasingly popular practice comes with a number of upsides for those for whom it makes sense to rentvest, but it should be noted there are some deterrents. Being ineligible for government grants due to the property not being a primary residence, and reliance on landlords are two such issues some rentvestors encounter.
– Speaking of buying, real estate network PRD has released its property guides for the first half of 2024 identifying the most affordable suburbs in the three largest capitals that offer a lower-than-average price point as well as strong investment fundamentals.
– The firm analysed areas based on affordability, investment return, liveability, and future stock projections. In Sydney, Villawood was identified as a good spot for house hunters, while those looking for units were advised to look in Lakemba. In Melbourne, Albanvale was selected for its house market and Williams Landing for units. Brisbane, meanwhile, offered the best bang for buck in both markets in Griffin.
That’s Property Buzz for today. See you again tomorrow, 12 June, for your daily dose of Property Buzz.
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