Latest news with #RayWhiteWilston
7NEWS
27-06-2025
- Business
- 7NEWS
Millenials and Gen Z take out most investor loans as rentvesting steps up
A new report has shown that Millenials and Gen Z'ers are taking out the bulk of investment property loans, as rentvesting gains momentum as a way into the property market. More than 50 per cent of property investment purchases in the past year were made by millennials and Gen Z, according to Commonwealth Bank data. This strategy allows buyers to purchase an investment property in an affordable area while continuing to rent in their preferred location - maintaining lifestyle while building equity. Ray White chief economist Nerida Conisbee said that the rise of rentvesting came as the traditional path of saving for a deposit while living at home, then buying in the same city where you work, has become increasingly unviable. Her research found that only 55 per cent of millennials aged between 25-39 own their home, compared to 70 per cent of baby boomers at the same age in 1991 and 65 per cent of Gen X in 2006. Loading content... "This dramatic shift reflects more than just affordability challenges - it represents a fundamental change in how young Australians must approach homeownership," she said. Foot on the ladder Rentvesting was the approach that 30-year-old Lydia Burgess and her partner, also 30, took to get a foot on the property ladder. The Sunshine Coast-based couple snapped up their first property in the Brisbane suburb of Stafford Heights, and plan to rent out the three-bedroom house. "We were kind of serious about buying a few years ago, but didn't do anything about it and have seen prices then just skyrocket in Brisbane since COVID," said Ms Burgess. While she said they will return to live in the house one day, rentvesting the property was a way to get into a home before prices rose even further. "We can't afford to not rent it out," she said. Rentvesting had also become more common amongst her circle to get into the property market. "I can see benefits for rentvesting in the long term, particularly for your first purchase," she said. Ray White Wilston agent Holly Bowden, who sold the Stafford Heights home, said she was seeing more rentvestors come to the market, with renovated, ready-to-rent properties a popular choice. "Investors want move-in ready and ready to rent places," she said. Two ways to profit There are two approaches when it comes to rentvesting according to Ms Conisbee. Buyers can look for properties and areas that offer capital gains or a high rental yield. In the case of capital gains it means buying a property that will go up in value and therefore put you ahead. "The objective is straightforward: when it comes time to sell, the difference between purchase and sale price helps bridge the gap between your budget and your desired home price," Ms Conisbee reports. She notes that capital gains investors typically target suburbs at the beginning of medium-term appreciation cycles. Current market conditions favour areas experiencing population growth, infrastructure development, or economic transformation. The other approach is a high rental yield strategy, that is buy a property that offers a good return on rent for what you paid. "This strategy appeals to investors preferring reliable income streams and those wanting to use additional cash flow to accelerate their savings for future property purchases," Ms Conisbee notes. "High-yield properties typically exist in regional centres, areas with specific employment anchors, or locations where housing demand exceeds supply." Flexible living There are other advantages to rentvesting a first property buy. Rather than being anchored to one location by a mortgage, rentvestors can relocate for career opportunities while maintaining their investment portfolio. The psychological pressure of homeownership - being responsible for every repair, rate rise, and market fluctuation on your primary residence - is also reduced. Investor loans and tax breaks also offer advantages. "The financial mechanics work particularly well in Australia's current market conditions," Ms Conisbee notes. "Investment property loans, while requiring higher deposits and carrying slightly higher interest rates, offer significant tax advantages through negative gearing and depreciation benefits. .
7NEWS
16-06-2025
- Business
- 7NEWS
From Brisbane to Perth local families fuel red-hot Auction action
Auction activity surged across the capital cities this week, with 2,216 homes going under the hammer, more than a 60 per cent jump on the previous week. The lift comes after a slowdown in auction numbers during the King's Birthday long weekend, which saw volumes dip. Clearance rates also rebounded, climbing back above 70 per cent. "The preliminary auction clearance rate bounced back to 70.1 per cent, after dropping to 59.9 per cent the week prior, later revised to 60.7 per cent, due to the long weekend," said Cotality research director, Tim Lawless. In Brisbane, a light-filled four-bedroom, two-bathroom home attracted the attention of nine registered bidders, eager to call the home their own. Bidding for the stunning property opened with a $1.2 million bid and from there five of the registered parties took part in the hotly contested auction. It took a bid of $1.635 million for the successful bidders, a local family, to secure the home at 73 Mawson Street, Stafford Heights, in the city's inner north. Lead agent Holly Bowden from Ray White Wilston said there was a lot of positivity in the Queensland property market. "We had more than 100 groups through this house during its campaign," she said. The vendors, a young couple with a baby, who bought the home in October 2020, before undertaking a major renovation, were thrilled with the result of the auction. They have moved to Bardon, in Brisbane's inner northwest, where they will undertake their next renovation project. Brisbane hosted 127 auctions this week and an early clearance rate of 61.4 per cent. At the same time last year, 192 auctions were held with a clearance rate of 67.7 per cent, according to Cotality. Family home sells after 70 years In Adelaide, a character-filled bungalow, built in 1926 and owned by the same family for 70 years, has sold at auction for just over $1 million. The home at 22 Wilton Terrace in Torrensville, just three kilometres west of the CBD, attracted nine registered bidders, while two of them actively participated in Saturday's auction. The successful bidders secured the home with a bid of $1.002 million. Listing agent Mark Lands from Lands Real Estate Stepney said the buyers, a young couple, purchased it as an investment. He said the home was a deceased estate and several family members were there to see the family home sell under the hammer. "The family was very cool, calm and collected and very happy with the result," he said. Cotality reported 133 auctions in Adelaide this week, with a preliminary clearance rate of 67.1 per cent, the highest early clearance rate in three weeks. At the same time last year, Adelaide recorded a clearance rate of 79.1 per cent. Woman buys home on same street as daughter In Perth's north, a modern four-bedroom, two-bathroom house has sold at auction for $1.4 million, with three of seven registered bidders competing for the home. Listing agent Scott Langley from Ray White North Quays said he had sold the home at 1 Angus Court in Duncraig, to the current vendors at auction four years ago. "They subdivided and have now sold one of the completed properties, so itwas great to have our buyers (now sellers) come back to us and the auction process," he said. "Our buyer was a lovely lady downsizing and moving closer to family, as one of her daughters actually lives on the street," he said. Ray White Western Australia CEO Mark Whiteman said the Perth property market continued to perform strongly with good quality properties continuing to attract high numbers of buyers. "This was highlighted here are starved for choice and continue to compete for properties," he said. Mr Lawless said the number of national capital city auctions is set to reduce next week, with approximately 1,850 currently scheduled and rising to around 1,960 the week after.
