CoreLogic National housing Update November 2017
November Market Outlook
Making rentvesting work for you
Should you rent to people with pets?
Buying property with friends
Adelaide November 2017
Brisbane November 2017
Cairns November 2017
Canberra November 2017
Darwin November 2017
Gold Coast November 2017
Melbourne November 2017
Newcastle November 2017
Perth November 2017
Regional NSW November 2017
Regional NT November 2017
Regional QLD November 2017
Regional SA November 2017
Regional VIC November 2017
South West WA November 2017
Sydney November 2017
Tasmania November 2017
Wollongong November 2017
CoreLogic NSW housing Update November 2017
CoreLogic QLD housing Update November 2017
CoreLogic SA housing Update November 2017
CoreLogic VIC housing Update November 2017
CoreLogic WA housing Update November 2017
What are the costs for buying a new home?
Self-employed? What you need to know about taking out a mortgage
Go hard or go home? Not necessarily
Newcastle November 2017
The month in review: Newcastle
By Herron Todd White
The rental market in Newcastle has largely been stable for the past few years. We haven’t seen the major increases in rental rates of some of the larger capital cities. Our path has been somewhat more gentle than severe. You could say that supply and demand have been somewhat in equilibrium over that time period, probably more so than the sales market, which has favoured sellers for the best part of three years now. With house prices in general rising, it’s quite surprising that this hasn’t fully translated through into the rental market. Part of the answer lies in the treatment of investors by banks. Investor loan rates have increased independently of standard mortgage rates, mainly as a curb on investor spending.
Owner-occupiers are in the ascendance and often able to pay more than the investors. It’s a balancing act for investors – they can’t get emotionally caught up in the moment as they are chasing a return and it comes down to mathematics. Owner-occupiers don’t let maths come into it if they love a property.
Incidentally there is also a third class – the flipper. This group is in it for the short term value-add proposition and moves on quickly to minimise holding costs. They play with a different set of drivers than the other groups. Key amongst them is the ability to add significant value easily. They would prefer not to deal with structural issues and almost exclusively look for varying degrees of cosmetic overhauls. Possibly a small extension or the addition of a deck is the farthest most will go. Key is time in and time out. Often these aren’t as lucrative as they appear after allowance for profit, holding costs, actual cost of the spruce up and selling costs.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.