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Gen Y to fire up a market in flux

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Ipswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market

AS Generation Ys grow up and become a bigger force in the residential property market during the next decade they will be one of the main groups that influence how our housing and suburbs work.Ipswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market

By the time 2020 rolls around Baby Boomers will no longer be the dominant force in the Ipswich property market, according to property consultants Urbis.

Urbis director of economics and market research Jon Rivera said it would be those currently aged 18-32 who would make up half of Brisbane’s population by then and would put the most demand on the housing market.

“In less than seven years, one of Australia’s largest population groups will be moving out of the family home and into independent living as 60 per cent of the generation Y demographic will be aged between 25 and 36 years of age,’’ he said.

“Housing demand from this group may be one of Brisbane’s biggest ever.’’

He said the shift toward the sort of housing generation Y were interested in had already started. They looked for affordability, lifestyle and accessibility, which meant many bought units.

“I think we have really been in the middle of it (the change) since probably the catalyst point was the GFC.’’

A lift in overseas migration had helped to swell the ranks of gen Y as a large majority of migrants were aged between 20 and 35.

“When we look at projections that we have been modelling, about 60 per cent of gen Y (in 2020) will be above the age of 24. Close to 30 to 35 per cent will be above the age of 30.’’

Mr Rivera said the type of property those people were looking at was focused on lifestyle.

“Generation Y is the most mobile and globally connected generation that property has ever seen and will be seeking dwellings and products of their time.

“Due to housing affordability in the areas where they really want to live, in the early years generation Y will opt to purchase an apartment or townhouse in Brisbane’s middle ring suburbs or rent an apartment in the inner city.

“They are a product of their time; they want low maintenance, walkability and trying to balance that all within the cost of living.’’

As a result Mr Rivera said houses were not going to be the preferred option for many as it was too expensive. Apartments were an easy entry point, low maintenance and in the location they were after.

As the opportunities to develop housing close to the city were becoming scarcer, Mr Rivera said it would show its true value in the future.

“We will see more infill (development) in the middle ring,’’ he said. “I think Brisbane is really well placed for this change, because we have got some good fundamentals.

He refers to the future demand as having a “Westfield effect’’.

“If you look at Brisbane a lot of growth areas are around Westfield shopping centres. Carindale, Mt Gravatt, Chermside, Indooroopilly. They will be good hubs.’’

Mr Rivera said those suburbs with strong transport links and services would benefit from demand.

“Brisbane will grow not just from the centre but from the outside (suburbs) in.’’

Despite the emergence of gen Y as a property buying force, Mr Rivera said Baby Boomers would still have a role to play.

Many would downsize to three-bedroom apartments in the inner city in mixed-aged environments and in locations with shops, restaurants and entertainment, or move to coastal lifestyle locations.

“Already, the December 2012 and March 2013 quarters have registered a bounce back in the number of sales for owner-occupied, three-bedroom apartments.’’

Mr Rivera said in the next three decades the different housing demands of different generation types would change Brisbane’s inner and middle ring suburbs.

“Projects such as Nundah Village, Showground Hill, Boggo Road Urban Village and East Village are examples of these urban precincts which will be behind Brisbane’s transformation.’’

 

Original article published at www.news.com.au by  Michelle Hele The Courier Mail 17/6/2013

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Opinion

These are the top 3 spots to bag a bargain in Brisbane: Ryder

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These are the top 3 spots to bag a bargain in Brisbane: Ryder

Property analyst Terry Ryder has picked three spots to invest in Brisbane. Picture: Richard Walker.Source:News Corp Australia

WANT to know where to invest in Brisbane that’s both affordable and offers the prospect of price growth? Look no further…

THERE are only three areas in Greater Brisbane that offer affordable real estate with growth potential, according to property analyst Terry Ryder.

The founder of Hotspotting.com.au has identified three precincts where there are plenty of houses well below the median Brisbane house price of around $530,000, close to transport links, shopping and jobs nodes, and with median rental yields in the 5 to 5.5 per cent range.

Here they are:

These are the top 3 spots to bag a bargain in Brisbane: Ryder

Hotspoting.com.au director Terry Ryder at his home in Queensland.Source:News Limited

1. Goodna-Redbank Plains, Ipswich

These suburbs are at the eastern fringe of the Ipswich local government area — the part closest to Brisbane, the motorway and the train line.

They are also close to the Springfield masterplanned community, which has an array of modern facilities, including university campus, hospital and commercial-retail precincts.

“There are numerous big shopping centres and major employment nodes nearby, with the recently announced $5 billion Defence vehicle contract focused on this precinct as a major new jobs creator,” Mr Ryder said.

These are the top 3 spots to bag a bargain in Brisbane: Ryder

Terry Ryder thinks parts of Ipswich would make a good property investment. Picture: Chris McCormack.Source:News Corp Australia

 These are the top 3 spots to bag a bargain in Brisbane: Ryder

Terry Ryder thinks Redbank Plains is a good place to invest in property.Source:News Limited

2. Eagleby-Beenleigh-Woodridge, Logan

Mr Ryder said these older suburbs in Logan had median house prices in the $300,000s and were clustered around the train line and the Pacific Motorway, both of which link central Brisbane to the Gold Coast.

“This is also where there is an impressive shopping offering, including major bulky goods retail, and well-established infrastructure like schools and medical facilities (as well as a surprising number of golf courses).

3. Moreton Bay

The suburbs of Beachmere, Burpengary and Upper Caboolture have experienced double-digit growth in their median house prices in the past year, according to Mr Ryder.

They are all close to major road and rail links, but aren’t as expensive as North Lakes has become.

Even in the Redcliffe Peninsula, where most of the water-focused suburbs are, the median house price is only in the $400,000s.

And the Peninsula now has rail links to central Brisbane, making it an even more appealing prospect.

These are the top 3 spots to bag a bargain in Brisbane: Ryder

The Moreton Bay Rail link has made the area more appealing to property investors, according to Terry Ryder. Picture: Tara Croser.Source:News Corp Australia

Source: moretoninvestor.com.au

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Opinion

Property tax hikes will hit economy hard

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Property tax hikes will hit economy hard

The state government’s planned property tax increases risk wiping the state off the global investment map, warns Chris Mountford,
executive director of Property Council Queensland.Kevin Farmer

THE state government’s planned property tax increases, due to come into effect on July 1, risk wiping the state off the global investment map.
As the government begins work on the State Budget, the Property Council is ramping up efforts to highlight the hidden effects of the tax hikes.

These tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact on every Queenslander.

With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time.

Election campaign costings, released in the days prior to the November 2017 state election, revealed the government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.

Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from July 1.

The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.

The end result of this decision will be higher business rents, higher costs for new homes and damage to Queensland’s reputation as an investment destination.

Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.

New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.

We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.

The Property Council is calling for the government to abandon the tax increases and commit to review and modernise Queensland’s property tax framework.

Our current land tax thresholds haven’t been changed in a decade, leading to significant bracket creep as property values have increased dramatically.

We need a simpler, fairer and more attractive property tax system to unlock investment and create jobs.

An all-encompassing review of Queensland’s outdated thresholds and property tax rates needs to be undertaken to put Queensland back on the investment map.

Chris Mountford is executive director of Property Council Queensland.

Source: brisbaneinvestor.com.au

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Opinion

Ipswich house prices on the rise

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Ipswich house prices on the rise

This is according to the latest analysis by RiskWise Property Research which found despite below-average property price growth over the past three months, Ipswich is an attractive destination to home buyers and investors who seek affordable housing. Over the medium to long-term the region is projected to deliver solid returns.

The research house CEO, Doron Peleg, said this would be driven by very affordable dwelling options and ongoing population growth, in particular, by high levels of interstate migration from Sydney and Melbourne.

The $5 billion contract for 211 high-tech armoured vehicles will result in a new multimillion-dollar Centre of Excellence at Redbank and defence jobs for 40 years.

Ipswich Mayor Andrew Antoniolli said the contract would create more than 330 permanent jobs from the outset, build significant opportunities for local businesses and provide associated work with ongoing delivery and maintenance of the vehicles.

“Defence directly contributed to more than 7000 jobs and almost $800 million to the Ipswich economy in 2016-17. But this contract will mean jobs for the next 30 to 40 years, for the life of the contract,” Cr Antoniolli said.

Mr Peleg said with the Queensland Government also allocating $868 million towards infrastructure and road projects in July last year, it was likely to trigger a construction boom which would grow local employment and hence demand for housing.

He said the Ipswich area, which was just 40km west of the Brisbane metropolitan area, enjoyed a stable property market offering both affordability, with a median house price of $371,000, and excellent access to the growing local business areas.

“The Ipswich area did deliver a slightly below average price growth relative to the Greater Brisbane and Australian benchmarks over the past five years,” Mr Peleg said.

“This is likely a result of its geographic distance from central Brisbane and the coastline, where most of the housing demand is centred.

“But that bodes well for those looking for affordability and the area has a house price-to-income ratio of 5.2 which is well below that of Brisbane and the rest of Australia.

“Also, lending restrictions and the potential recommendations of the Banking Royal Commission that are likely to result in lower borrowing capacity, are likely to increase the demand for Ipswich property.”

Mr Peleg said the region had a high median rental return of 5.2 per cent for houses and 5.8 for units which surpassed both the Greater Brisbane and Australian medians and could be attributed to the “very low” median property price combined with the ongoing demand for rental properties across Ipswich.

He expected them to remain at a consistent level over the short to medium-term.

“However, it is worth noting that units, with an extremely affordable median price of $280,000, do carry a higher level of risk, particularly in the short-term due to high additional supply levels,” he said.

“The Ipswich area delivered lower capital growth for units than for houses over the past five years. We believe given the high supply levels expected over the next 24 months, it is likely the area will continue its poor price growth trajectory.”

Another 2,683 new units will be added to the local property market over the next 24 months which is an increase of 39.1 per cent to the existing supply and sits well above the number for Greater Brisbane.

Mr Peleg said this level of supply should be treated with “high caution” and was likely to slow the market for units over the short to medium term.

Visit www.riskwiseproperty.com.au

RiskWise Property Research was formed in 2016 with the goal of providing property risk advise and research services to help its clients make informed purchasing decisions.

Its goal is to provide private investors, home buyers, property professionals and institutional clients with detailed risk information to support smarter decision making. Its vision is to be a global leader in property risk rating and research helping its clients to achieve deeper risk insights so they can make smarter property investment decisions.

Source: www.miragenews.com

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