This week we are continuing a series looking at high growth suburbs where median house prices are affordable and rental yields are solid. This week’s focus is outer Brisbane suburbs.
And in this week’s tip we look at the year in property and what’s happening with first home owner incentives after December 31.
News
In this week’s property news, research has shown that coastal homes in some of Australia’s top holiday destinations have seen significant falls in prices since the start of the GFC.
According to research commissioned by Australian Property Monitors for The Weekend Australian, average house prices in coastal centres of Queensland, NSW, and Western Australia all fell in the past two years.
Port Douglas saw the biggest decline with prices having fallen by as much as 30%.
In other news listed mortgage lender RHG, formerly RAMS Home Loans has revealed that it could default on around $2.5 billion in loans.
The news comes after the NSW Supreme Court last week found RHG to be in breach of a loan covenant on a $324 million debt facility.
And data released by the ABS shows that lending for new home's continues to increase with loans for the construction of new dwellings and the purchase of newly built homes rising 5.7% in October.
Suburb in Focus
In our suburb in focus section each week, we look at property markets around Australia that could be of interest to property investors. We have compiled a list of the top growth suburbs in the last 12 months within 30 kms of each capital city around Australia that also have median house prices under $500,000. This week the focus is outer Brisbane - we’re looking at Berrinba but first up is Redbank which is located about a 27 km drive south west of Brisbane’s CBD.
Redbank’s population 3 years ago was just over 1,000 people. It has a larger than average elderly population with 26% of the population being over 65 years. Only 55% of homes more than 1 person of these, only 46% contain children. 31% of dwellings are rental properties. Houses make up 81% of properties. A large number of Redbank’s working residents are employed as labourers and in trades.
The median house price in Redbank is $307,000 dollars, which is 16% higher compared to a year ago. 2008 growth was just 3 percent. There have been 19 houses sold in the last 12 months. The median rent price for a house in the suburb is $268 which brings the gross rental yield to 4.53%.
Now to the house market in Berrinba which is located about a 28 km drive south of Brisbane’s CBD. It’s a very small suburb with a population of under 150 people in 2006. The suburb has seen some development in recent years but it is still largely undeveloped and located in a bushy area. 19% of homes in the suburb are rental properties and Berrinba’s residents are employed in road transport and building and construction industries.
The median house price in Berrinba is $408,750 dollars, which is an increase of 14% compared to a year ago. In 2008 growth was 7%. There were just 16 houses sold in Berrinba in the 12 months to November 30. The median rental price is $405 bringing the gross rental yield to 5.15%.
Tax Tip
This week will see the end of the government’s First Home Owner Boost payment leaving only the $7,000 First Home Owner Grant available after the 31st of December however, state governments have been given permission to cap the $7,000 First Home Owner Grant. NSW, WA and the NT will only be paying the grant to purchases less than $750,000. Queensland properties will need to be under $1 million and to access the grant in VIC the purchase price will need to be under $600,000.
The government initiative to support the housing market appears to have worked with first home owners making up a larger than normal share of buying in 2009 – at one point making up 29% of buyers.
And low interest rates and increasing optimism about the economy could see growth and yields strengthening further in 2010, certainly property economists are expecting growth to continue next year.
