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Investors & Landlords
Manage My PropertyWhy choose Us
Raine & Horne North Lakes is a full service real estate agency with a reputation for expertise and a commitment to excellence. We take the management of your investment property seriously and believe our proactive approach is what sets us apart from our competitors. The consistent growth of our business is due to our proven track record of providing owners with service in which they have 100% confidence that their property is being well cared for.
Our focus is to maximise your return on investment and our trained staff with a hands on approach, together with our fine-tuned systems and cutting edge technology, will guarantee your peace of mind throughout your property investment journey. We are committed to providing a level of service unmatched in the industry and will communicate with you regularly about all the important matters relating to the leasing and management of your rental property.
Specialist Team
Our team is highly trained in all facets of property management including constantly changing legislation
Regular Communication
We believe communication is an integral part of our service to you and we will ensure you are involved in all decisions regarding your property
Technology and Systems
We have invested in various systems and technologies to ensure we deliver the best results for our customers
Market Knowledge
Our Property Managers understand market conditions and how this will impact the rental yield of your investment
Global Brand
Our local knowledge is backed by our collective strength and the comprehensive resources offered to our Property Managers by the Raine & Horne network
Raine & Horne in numbers
Properties under managements across the network
New tenants moved into their new Raine & Horne managed properties
Property Managers ready to support you through your property investment journey
Property Management News
Can my rental history affect your chances of securing a home loan?
This is a great question, and I’ve asked Craig Betalli from Our Broker to help answer it.
While some lenders still consider rental history, Craig notes that it’s less significant for lenders than it used to be. However, having a history of defaulting on your weekly rental payments won’t exactly work in your favour with lenders, either. That said, rental history is becoming a less important factor, especially with the advent of First Homeowner Grants and stamp duty subsidies.
Generally, as a first-time borrower, when you borrow more than 90% of a property’s value, banks want some proof that you have saved your deposit over time by what’s known as a “genuine savings policy”. It is the only way for the bank to assess if you have some financial consistency. Alternatively, suppose your savings are less than 5%, and someone gifted you part, or all of, your deposit. In that case, the banks will look at your other regular repayments - such as rental history, when considering your creditworthiness.
Craig explains that nowadays, rental history is less critical for first-time buyers because there are alternative options available. While many lenders still require genuine savings for over 90% of LVR loans, some lenders are more flexible. Also, first-time buyers can use government schemes such as the First Homeowners Guarantee. Still, keeping up with rental payments is good practice—as it shows lenders you have the financial discipline and readiness for homeownership.
Moreover, family-guarantee products are becoming more common, which reduces the emphasis on rental history. Craig explains that these products can help first-time buyers avoid the need to prove genuine savings.
Setting the issue of rental history to one side, Craig also points out that one of the biggest mistakes renters make is thinking they don’t qualify for a first home loan. Often, the natural barrier to homeownership is the borrower’s insecurity about the likelihood of obtaining an approval rather than a lack of savings. With some suitable government schemes, you may only need a 5% deposit (or 2% for eligible single parents), and if you can do something like selling a car, you might find yourself with enough for a deposit.
Craig stresses that many first-time buyers don’t know what options are available. For instance, some won’t discuss family guarantees with their parents because they fear what their family might think. But it’s vital to have those conversations and explore the options available. If you don’t qualify after those discussions, you’ll know at least what steps to take to get into a property.
We highly recommend seeking the assistance of a finance specialist, such as Our Broker, to help understand what’s required financially and explore the options available to help you buy your first home and jump off the rental treadmill.
To learn more about your finance options, call 1800 913 677 to talk to Our broker today.
Is it worth investing in a regional town?
Investing in a regional property market is a wise choice. As rental growth in higher-priced capital cities slows, regional markets are experiencing significantly higher demand and tighter supply, as highlighted in a new report.
PropTrack’s latest rental report for the September 2024 quarter shows that people in capital cities were paying a median rent of $640 per week in September, an increase of 1.6% over the quarter and 6.8% year-on-year.[i] In contrast, regional rents grew even faster, reaching $540 per week in September, up 1.9% from June and 8% since September 2023.
For instance, in Perth, rental yields stand at 4.2%, while regional WA produces higher yields of 5.9%, according to CoreLogic[ii]. Similarly, Adelaide averages a rental yield of 3.7%, compared to 4.7% in regional areas beyond the South Australian capital. Even in Darwin, where the capital city yields are impressive at 6.8%, regional Northern Territory outperforms with yields of 7.6%.
However, it’s not simply a case of turning up to an open for inspection in a regional investment hotspot to guarantee Melbourne Cup-like returns akin to this year’s $81 “roughie” winner, Knight’s Choice. However, with careful research, decent returns are possible. Take Bathurst in central NSW, where apartment rents have climbed 5.6% over the past year, or Gladstone in Queensland, where house rents are up 6.3%, and weekly apartment rents have surged by 11.4% over the last 12 months.
To succeed when investing in a regional property, you need to consider what amenities tenants typically seek. Features such as home offices or study areas, fenced backyards for pets, and proximity to transport and schools are in high demand.
While regional properties often offer lower purchase prices and higher rental yields than capital cities, they may come with trade-offs, such as potentially slower long-term capital growth. At the same time, there can be a smaller tenant pool and more extended vacancy rates.
To achieve investment property success, selecting a regional area with a diversified economy is essential— not a one-trick pony dependent on agriculture, for instance—to minimise investment risk. Take Bathurst, for example, where the local economy is valued at $3 billion, according to the Bathurst Regional Council[iii]. Key industries such as healthcare, education and training, and construction employ more residents than agriculture, underlining Bathurst’s economic diversity. Local council websites are an invaluable source of data and insights for budding landlords looking to understand the economic landscape of any regional centre.
A regional property can also be a solid choice for a positively geared investment, providing strong yields in markets with balanced tenant demand and economic resilience. But before making a move, talk to your accountant about positively gearing a property.
Would you like to know more about buying a rental property in a regional area? Speak with your local Raine & Horne team for expert insights.
[i] ttps://www.realestate.com.au/news/rents-remain-high-but-theres-a-silver-lining-for-aussie-renters/
[ii] https://www.corelogic.com.au/news-research/news/2024/sydney-home-values-slip-in-october-as-market-cooldown-continues
[iii] https://economy.id.com.au/bathurst/employment-by-industry
How do I calculate yield?
The rental yield generated by an investment property can play a key role in deciding which property to buy. Let’s unpack what ‘yield’ is, how it’s calculated, and what a typical yield looks like around the nation.
One of the great aspects of owning an investment property is that you can expect to earn two types of returns – capital gains plus regular rental income.
As capital gains will be made in the future when you sell the property, it is impossible to say with 100% accuracy what the gain will be.
It’s a very different story with rent returns.
Tenants sign a lease that specifies a regular rent, so investors can work out the ongoing return their asset will generate by looking at the rental yield.
Gross versus net yield
Research companies such as CoreLogic regularly publish figures for property yields. This is always the ‘gross’ (before costs) yield because the ongoing costs will vary between properties.
Even so, gross yield is useful to know as a tool to compare between various investments.
Gross yield is calculated as follows:
Gross yield = Annual rent ÷ property value x 100
For example, let’s say Nicki pays $500,000 for an apartment that she rents out for $450 per week. As there are 52 weeks in a year, her annual rent will be $23,400.
Nicki’s gross yield can be calculated as:
$23,400 ÷ $500,000 x 100 = 4.68%
However, gross yield provides just one part of the picture.
Rental properties come with regular outgoings such as insurance, strata levies and repairs and maintenance. These outgoings are taken into account when it comes to calculating ‘net’ yield, which is calculated in this way:
Net rental yield = Annual rent less property costs ÷ property value
By considering regular costs, net yield can help an investor decide between two different properties. Here’s an example.
We’ll say Lee has narrowed his choice down to two apartments. Both have an asking price of $600,000, and both have similar capital growth prospects. Each apartment is expected to generate annual rent of $24,000.
However, the outgoings of the two apartments are different. Apartment 1 is older so may need more repairs, while Apartment 2 is newer and has more facilities, so the strata levies are higher.
The table below shows how Lee can calculate which property will deliver the higher net yield. It turns out that Apartment 1 has a higher net yield of 3.08% compared to 2.9% for Apartment 2.
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Apartment 1
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Apartment 2
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Property value
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$600,000
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$600,000
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Annual rent
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$24,000
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$24,000
|
|
$2,000
|
$2,500
|
|
$2,000
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$3,500
|
|
$2,500
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$500
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Total outgoings
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$5,500
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$6,500
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Net yield
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3.08%
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2.9%
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Of course, a variety of factors will shape your choice of investment property – not just yield. But it’s handy to have an idea of the net yield when comparing potential properties.
Gross yields around Australia
Gross yields vary across locations and also between different types of properties. As a general rule, houses tend to have lower rental yields though the upside can be higher long term capital growth.
The table below shows the gross yields across Australia’s capital cities for October 2024. Bear in mind, yields will change in line with shifts in rent and property values.
Gross yields – October 2024
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||||||||
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Sydney
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Melbourne
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Brisbane
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Adelaide
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Perth
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Hobart
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Darwin
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Canberra
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Houses
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2.7%
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3.2%
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3.5%
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3.5%
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4.0%
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4.2%
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6.1%
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3.7%
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Units
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4.0%
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4.8%
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4.6%
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4.7%
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5.6%
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4.5%
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7.9%
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5.1%
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Source: CoreLogic Hedonic Home Value Index 1 October 2024[1]
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Like to know more about how rental yields work? Speak with your local Raine & Horne team for expert insights in your neighbourhood.
[1] https://www.corelogic.com.au/__data/assets/pdf_file/0012/24303/CoreLogic-HVI-Oct-2024-FINAL.pdf
Rising cattle prices and improved rainfall spark positive outlook for rural property markets
The latest insights from Rural Bank reveal encouraging signs for rural property markets, driven by shifts in cattle and dairy prices.
According to the October Insights from Rural Bank, cattle prices are likely to see a marginal increase with a firming of restocker demand and a slight reduction in cattle yardings at local markets.
Slaughter rates have remained stable but are expected to show a modest decline during October, should the rainfall forecast eventuate as supply chain issues and a reduction of cattle on local markets slow processing capacity.
The latest Bureau of Meteorology forecasts, as noted by Rural Bank, also show a strong chance of above-average rainfall in major cattle regions in the coming months. This is expected to increase restocker demand and decrease cattle yardings marginally. Both factors would support an uplift in prices.
Australian beef is set to benefit from an expected increase in US imports throughout the rest of 2024. This should mean that extremely high Australian beef exports to the US are maintained. Import demand for Australian beef is likely to remain on par with 2024 levels throughout the majority of 2025 as well. Australia has now climbed to be the US’s second-largest source of beef imports, just behind Canada. In 2023, Australia was ranked the fifth largest supplier. Australia has contributed over 20% of the total US beef import volume in 2024. This is up from 14% in 2023, highlighting the extraordinary year of exports to the US.
In September, southern Queensland and northern New South Wales experienced average rainfall, keeping these regions on track for a promising above-average crop season.
Meanwhile, Rural Bank reported that global dairy prices increased in the past month. This suggests an improvement in global demand. The Global Dairy Trade (GDT) index rose in each of the last two fortnightly auctions for a total gain of 1.9%. This placed the GDT index 22.1% higher year-on-year and at its highest point since October 2022. Price trends have varied across the major dairy products. Cheddar saw the largest gains in the last month, up 6.5% - and continues the steady climb in cheddar prices, which have risen 15.7% since July. Whole milk powder (WMP) also grew in the last month, up 4.8% to its highest point since October 2022. Skim milk powder (SMP) prices were relatively steady in the recent GDT auction.
Travis Wentriro, Network Manager at Raine & Horne Rural, said, “The recent insights from Rural Bank highlight key drivers that could boost demand for rural properties.
“The anticipated rise in cattle prices, supported by more robust restocker demand and improved rainfall in major cattle regions, creates a positive outlook for graziers. This potential for better returns in the livestock sector will likely attract investors looking for reliable rural property assets.
Contact your local Raine & Horne Rural office today if you’re considering listing a rural property.
Australian real estate records 20th straight month of growth
Australia’s favourite asset class continues to motor along at a steady pace, with residential real estate recording growth of 0.4% in September, according to CoreLogic.
Perth led the charge in September with a 1.9% growth, followed by Adelaide at 1.3%. Brisbane was next, posting just under 1% growth for the month, while Sydney continued its steady rise, remaining in positive territory.
Though CoreLogic’s research shows an easing trend, regional housing markets remain in positive growth territory. The combined regionals index saw a 1.0% increase over the September quarter. Like the capital cities, regional areas in WA (+3.6%), SA (+2.3%), and Queensland (+2.0%) are driving growth in regional housing markets.
Meanwhile, spring listings coming onto the market are tracking 14% higher than a year ago nationally, according to data from Raine & Horne, as savvy property owners seek to take advantage of real estate’s almost two-year run of growth.
More vendors choosing to list properties now makes sense on several levels, according to Angus Raine, Executive Chairman, Raine & Horne. “Spring is traditionally the peak season for real estate, as many vendors believe their properties show at their best during this time, and buyer demand remains strong, despite the persistence of the Reserve Bank in keeping interest rates at their current high levels.” According to Raine & Horne data, groups at open for inspections are higher than September 2023, and over 36% higher than two years ago.
According to Angus Raine, the immediate outlook for housing markets is for further growth. “With inflation heading in the right direction, a rate cut will eventually come sooner rather than later.
“The supply of new properties appears to be gridlocked due to several factors, including government red tape, lack of tradespeople, and higher building costs, which will underpin real estate values in the long term.
Angus continues, “While I’d like to see stamp duty tax breaks considered by state governments to encourage empty nesters or people over the age of 70 to sell up family homes that are now superfluous to needs to help address supply issues, I’m encouraged that the Federal Government appears to be stepping back from talk of proposed changes to property tax incentives, such as the 50% capital gains discount for investment properties and adjustments to negative gearing.
“However, after the challenges our industry faced during the 2016 and 2019 federal elections, we must stay vigilant. It would be a bold move to change the current investment property taxation regime.”
For an obligation-free appraisal of your home’s or investment property’s value for a spring sale, contact your local Raine & Horne office today.
Should I get a building inspection for my next property?
Purchasing a property is a significant investment, so the last thing you want is to be stuck with unexpected expenses to fix faults such as rising dampness, movement or cracking in the walls, safety hazards or a defective roof.
That said, most contracts require a buyer to obtain a building report and a pest report to check for creepy crawlies such as termites, white ants, and other pests that can damage the property.
A building inspection by a licensed building inspector will reveal any potentially costly structural or safety issues within a property. It will also outline what work needs to be completed to return a property to a safe and comfortable standard and the estimated cost for completing the repairs. For a buyer, it can give you some understanding of whether it’s a good buy or a lemon. It’s a little like buying a used car from a private seller. Getting a mechanic to look under the bonnet before you hand over your hard-earned money is always advisable. Likewise, before buying a house, get a building inspector to run their eye over the property. According to Hipages, there is no flat rate for building inspection costs. The fee will largely depend on the size of the property. Expect to pay around $200–$300 for a smaller property and $400–$500 for an average-sized house. Pest inspections can be completed simultaneously for $100 and $150 extra[i].
In most states and territories, buyers must pay for building and pest inspections. Additionally, when house hunting, you might need to order inspection reports for multiple properties, so it’s important to factor this expense into your budget.
If you are buying a brand-new property with new fixtures and fittings, don’t take it as gospel that everything is in perfect working order. The trouble is that new properties won’t immediately reveal any structural issues, and if you have recently secured a property off-the-plan from a developer, it is recommended that you organise a “handover report.”
A “handover report” is a comprehensive report of a newly built property by an independent builder and covers the interior of the apartment and external areas where possible and includes items such as the quality of the final finishes, including paintwork, plastering and tiling, as well as external cladding and finishes to balconies, as well as walls, ceilings and floors. Its purpose is to ensure that you are protected from any substandard workmanship while it also assesses the structural integrity of the building by highlighting, in detail, any defects and imperfections.
Prices to carry out a handover inspection report start at $380 for a unit[ii], and depend on your state or territory and the builder you hire. However, it is a worthwhile investment that can spare you the financial burden of fixing possible defects to a brand new property in the future.
To discuss your property buying options, speak to a Raine & Horne agent today.
[i] https://hipages.com.au/article/how_much_does_a_building_inspection_cost
[ii] https://www.inspectmyhome.com.au/handover-inspections-reports.html#:~:text=Prices%20to%20carry%20out%20a,office%20for%20an%20accurate%20quote.