OWNER INFORMATION
Real Estate Queensland
Why this year is the one to grab property
REAL estate agents on the Sunshine Coast are advising people to buy rather than rent this year as the pressure on the housing market continues.
New figures released by the state government show the rental squeeze is crushing people on low incomes, with the average cost of renting rising almost 50% over the past five years.
“Between December 2001 and June-December 2006, the median rent for three-bed-room houses in Queensland increased by around $85 per week, or around $4420 per year,” said Housing Minister Robert Schwarten.
Worst affected was Mackay, where the mining boom saw rental prices double over the past five years, while Rockhampton experienced a 63% increase in the same period and Brisbane went up 50%.
On the Sunshine Coast, the median weekly rent for a three-bedroom home rose 53% between December 2001 and December 2006, leading to the call from agents to abandon the rental market and buy wherever possible.
Gannon Realty principal Clive Gannon said he expected 2007 to be a steady year.
“I’m not predicting a lot of growth, but I think there will be a small amount,” he said.
The abolishment of stamp duty for new home buyers was also an incentive for people to buy rather than rent, he said.
It was a “very good idea” for renters to consider buying property rather than battling the tight rental market and paying increased rents.
“We don’t have one single thing to rent – we rented the last house on our books on Friday and there’s absolutely nothing around at the moment,” he said.
Mr Gannon said there was a “50-50” chance of an interest rate rise in February, but he maintained saving up for a house deposit was the best investment for people looking to buy their first home.
“If young people can’t save up a deposit then I suggest they hit up their parents for a loan, because that’s their only chance at the moment to get their foot in the door in the property market.
“The gap will just continue to widen in the next few years.” PRD Nationwide Maroochydore director Syd Walker said he expected property values to “firm up” this year.
“Last year was the worst year in terms of volumes of sales and not enough buyers, whereas this year values are firming and we’re looking at a hard, solid market,” he said.
“This year I think we’ll still see more houses for sale than buyers, but it won’t be as bad.”
He said first home buyers would continue to be on “struggle street” this year, as properties at the lower end of the market became harder to find.
Raine and Horne Mooloolaba principal Steve Suter agreed, saying first home buyers had “almost evaporated” as they struggle with affordability of property at the bottom end of the market.
“The best thing they (the government) could do to give the market a boost would be to re-introduce the $14,000 grant because, at the moment, it’s difficult for them to save a sufficient deposit to get them over the line,” he said.