Atlas Market Insights

In fact, the government is currently encouraging first home buyers specifically to purchase a home. The state and federal governments have huge incentives for first home buyers right now including the first home buyer deposit scheme, which can be added on to other concessions such as HomeBuilder. With so many additional grants, many people are choosing to move from tenanted properties and purchase their own homes which they will occupy. With such low interest rates, it is a particularly attractive time for people to buy their own homes. Many investors are also selling their homes who were previously investors due to excellent capital gains. People are then purchasing these investment properties and living in them as owner occupiers, contributing to the tight rental market. What advice would you give to people thinking of investing right now? Do not hesitate to invest, as it’s a fantastic market with opportunities for great returns and capital gains over time. Put your best offers in as soon as you can. Returns are going to continue to increase at least throughout 2021, so before the borders open and international buyers begin to snap up property, definitely look to a strong investment opportunity. What advice would you give to current landlords? If you have good, respectful long-term tenants, negotiate a reasonable rent increase with them so that your rent price is meeting market value. This way, you can increase your returns in good conscience and keep your current tenants. Speak to your property manager when it is time for your lease to be renewed and see if there is room to warrant an increase on your property. They can advise you on the best next step. How are rental returns performing in Brisbane? Rental returns and yields have both dramatically increased in Brisbane. Rents are increasing anywhere from 5% through to 15% in some cases, which definitely results in an increase in returns. Brisbane’s gross rental yield for houses is 4%, and for units is 5.2%, which is much higher than other capital cities such as Sydney and Melbourne. However, this is causing a lot of stress to tenants as affordability is decreasing rapidly. Many investors rely on rent as their only source of income, so are of course, very keen to increase rent. Experienced property managers are trying to encourage an increase of rent in accordance with the market value and are advising landlords not too raise prices too high, especially if the tenants have been good. Rental returns are definitely increasing, but I would warn landlords against hiking up prices if they have current tenants who are respectful of their property. 21