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Real estate: Eleven suburbs reach $1m median house price in Perth

Real estate: Eleven suburbs reach $1m median house price in Perth

Eleven suburbs have joined the $1m median house price club as values ​​continue to climb in Perth.

While other states are seeing house prices fall, Perth has lagged behind most of the other capitals.

It means despite rising interest rates and cost of living pressures, the housing market in WA has soared in the past year.

Six of the 11 suburbs recorded more than 20 per cent price growth during the 2021-22 financial year, according to the Real Estate Institute of Western Australia.

Marmion, Mount Hawthorn, North Perth, Fremantle and Kensington had their median house prices tip above $1.1m at the end of June.

Gwelup, Booragoon, Karrinyup, Leederville, Iluka and Como reached $1m or more.

The top suburb is Marmion, which now has a median price of $1.27m — an increase of 32 per cent in the past year.

REIWA president Damian Collins said people had started to gain confidence in WA’s strong economy and property market, which had translated into more sales at the top end.

“All of these suburbs have had medians hovering below $1m for quite some time,” he said.

“It is impressive to see the demand for houses in these suburbs hold strong throughout the 2021-22 financial year, now placing them in Perth’s luxury market.”

Mr Collins said Perth’s premium market was attracting a lot of interest from buyers leading to strong price growth.

“If you are considering selling in one of these suburbs, now would be an opportunistic time to capitalize on this demand,” he said.

REIWA predicts house prices will continue to rise in Perth for some time.

“Given Perth has a housing shortage, the cheapest median house price of any capital city in the country, a growing population and strong economy, we anticipate house prices to continue to rise as we enter the back end of 2022,” Mr Collins said.

“As more suburbs reap the benefits of our strong market conditions, Perth’s million-dollar club is likely to continue to grow over the next 12 months.”

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Melbourne real estate: Couple mocked for impulse buying $1.5m terrace

Melbourne real estate: Couple mocked for impulse buying $1.5m terrace

A young Melbourne couple have been roasted online after “impulse buying” a $1.5 million East Brunswick terrace at auction.

But the agent who sold the property has now spoken out, saying the backlash from “keyboard warriors” is unfair and that the sale has been misrepresented.

Property website Domain published an article on Saturday about the young buyers of 110 Barkly Street, which sold under the hammer after the couple pipped another bidder for just $500.

Darcy and Tessa, who declined to give their last names, ultimately paid $1,500,500 for the deceased estate, which went to auction with a price guide of $1.3 million to $1.43 million.

“To be honest we weren’t really looking, we were just looking casually and this one popped up,” Tessa told Domain.

Darcy added, “There’s a bit of concern around with what housing prices are doing but this one really stood out to us, and it turned out we got it.”

The couple said they planned to fix up the terrace and rent it out in the short term before moving in later and doing further renovation.

Darcy said while interest rate rises were “certainly something to consider”, the couple were “in a good position with renting it out at this point”.

“From our point of view we can pass that on to the rental market,” he said.

The article went viral on Reddit after a user on the Melbourne forum posted a screenshot of the headline.

“I guess I don’t feel so bad about impulse buying a Snickers at the Coles checkout now,” they wrote.

“I mean we’ve all been there, right? Just wandering down the street to get coffee or something, you’ve got $1.5 million burning a hole in your pocket and you stumble across an auction – damn it! Did I really just buy a house again? Man my wife is going to give me a hard time about this when I get back.”

One person replied, “I genuinely know two people who have done this. One whilst driving past on the way to visit a friend (investment property in Footscray), and the other whose husband came home and announced he’d bought a new family home. WTF.”

Another wrote, “Joke’s on them, be at least $500,000 less in about six months.”

Ray White Glenroy auctioneer Stefan Stella told news.com.au on Monday he felt the reaction from “keyboard warriors” online had been “pretty harsh”.

“As much as it said they weren’t really looking, they did see it on the first open, came multiple times – they were there three times,” he said.

“In my opinion they were probably always going to get it. The underbidder only saw it in the last week. I think what they may have meant was they weren’t actively looking and religiously out there every Saturday, that’s potentially the message they were trying to get across.”

It comes after the Reserve Bank hiked interest rates for the fourth month in a row last week.

The 50 basis-point increase at the central bank’s August meeting brings the official cash rate to 1.85 per cent, up from the record low 0.1 per cent it was up until May.

Already, the rise in interest rates has pushed house prices down in most major cities as borrowers stare down the barrel of higher monthly payments.

PropTrack’s Home Price Index shows a national decline of 1.66 per cent in prices since March, but some regions have seen much sharper falls.

“As repayments become more expensive with rising interest rates, housing affordability will decline, prices pushing further down,” PropTrack senior economist Eleanor Creagh said.

[email protected]

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Metricon QLD GM Luke Fryer quits, national restructure update this week

Metricon QLD GM Luke Fryer quits, national restructure update this week

The Queensland general manager of troubled builder Metricon has resigned, days after the company announced around 225 staff would be sacked in a national restructure.

Luke Fryer, who had been with the company for 15 years starting as a sales estimator in 2007, was previously NSW GM before moving back to his home state of Queensland in 2020.

Metricon director Jason Biasin announced Mr Fryer’s resignation in an email to staff on Friday.

“The last two years have seen more challenges in our industry than ever before,” Mr Biasin wrote.

“Luke’s commitment to our people, to me personally and our business has been unwavering and will not be forgotten. We wish Luke all the best for the future and he will always remain a part of the Metricon family.”

He added, “I know this week has been very difficult for everyone and I thank you all for your professional and compassionate approach to the tasks at hand and looking after each other. I look forward to sharing more positive news with you next week.”

Metricon has been contacted for comment.

Last Monday, Metricon announced it would be shedding 9 per cent, or about 225 of its 2500-strong national workforce, in a restructure “to better accommodate and reflect the requirements of the current market“.

The affected roles are largely in sales and marketing.

The country’s largest home builder was plunged into crisis in May amid reports it was on the verge of financial ruin and engaging in crisis talks with the Victorian government, following the sudden death of its founder Mario Biasin.

Acting chief executive Peter Langfelder has repeatedly shot down those allegations, but a question mark still hangs over Metricon’s future despite the company’s directors injecting $30 million into its business to allay fears about its survival, and a rescue deal being struck with Commonwealth Bank.

Last month, Metricon listed nearly 60 display homes for sale across NSW, Queensland, South Australia and Victoria, worth a total of around $65 million.

Staff who were informed of the restructure during a Microsoft Teams meeting last week said those who had remained with the company rather than jumping ship “basically had the rug pulled out from under them”.

“It has not been received well by some of them,” one NSW staff member told news.com.au. “I’m a little bit burned by the whole situation.”

In a statement on Tuesday, Metricon confirmed it was in the “process of an internal restructure of the business, with an increased focus on delivering homes to more than 6000 Australians whose houses will be constructed this year”.

“To better accommodate and reflect the requirements of the current market and ensure the most appropriate deployment of resources, Metricon is working to appropriately reduce its sales and marketing capability while it focuses on the construction and delivery of more than 6000 homes,” a spokeswoman said .

“We have commenced a consultation process with our people. This process is proposed to lead to a reduction of personnel and redundancies across the national business.”

The spokeswoman said 2020 and 2021 saw record demand for homebuilding and that Metricon “expects demand to settle at pre-pandemic levels”. “As a result, the business will rebalance towards construction on homes it is currently building and the thousands more in the pipeline – the biggest volume in the company’s history,” she said.

The impacted roles will be at the “front-end of the business, predominantly in sales and marketing roles, representing approximately 9 per cent of the national workforce”.

“With the headwinds buffeting the industry, specifically labor costs due to competition for skills, combined with present global material cost hikes and with our very strong existing pipeline of work, we need to carefully balance the current pipeline of new builds with the construction side of the business,” Mr Langfelder said in the statement.

“We are working to restructure our front-end of the business given the current climate and the need to move forward efficiently. We are committed to looking after any of our people who may be impacted by these proposed changes, and they will continue to have ongoing access to the company’s support and mental health services.”

Mr Langfelder said Metricon was rebalancing the business’ focus over the next 18 months on executing builds as quickly and efficiently as possible whilst maintaining equilibrium in the pipeline.

“We have previously said that our company has a proven history of success and remains profitable and viable, with the full support of our key stakeholders – this remains the case today,” he said.

Mr Langfelder said Metricon was still expected to continue to contract on average 100 homes per week, in line with pre-pandemic levels. “Our future construction pipeline shows no sign of slowing down with more than 600 site-starts scheduled for 2023,” he said.

In an email to staff on Tuesday, Metricon said it would be holding a virtual town hall this week “to provide you with further updates on our business, current market conditions and plans for the future”.

“We do not underestimate the effect that this review is likely to have on some of you,” the directors wrote.

“We are committed to working through this process as thoroughly and efficiently as possible, and to keep you updated as we progress… Despite the current challenges across our industry, we remain stable as a business with full support from our key stakeholders.”

The Australian building industry has been plagued with escalating issues that have already seen Gold Coast-based Condev and industry giant Probuild enter into liquidation in recent months, while smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also failed, leaving homeowners out of pocket and with unfinished houses.

The crisis is the result of a perfect storm of conditions hitting one after the other, including supply chain disruptions due largely to the pandemic and then the Russia-Ukraine conflict, followed by skilled labor shortages, skyrocketing costs of materials and logistics and extreme weather events .

The industry’s traditional reliance on fixed-price contracts has also seriously exacerbated the problem, with contracts signed months before a build gets underway, including the surging costs of essential materials such as timber and steel.

It comes after it recently emerged that Australia recorded a staggering 3917 liquidations or administration appointments across all industries during the 2021-22 financial year.

The construction sector led the charge, representing 28 per cent of all insolvencies, although firms from countless industries also failed in the face of soaring inflation and interest rate pressures, Covid chaos, labor shortages and supply chain disruptions.

There were 1536 collapses in NSW, with Victoria recording 1022, Queensland 665, WA 350, South Australia 196, 91 for the ACT, 29 for Tasmania and 28 in the Northern Territory.

[email protected]

— with Alexis Carey

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Schitt’s Creek fans get ready: Entire town up for sale in Victoria, Australia

Schitt's Creek fans get ready: Entire town up for sale in Victoria, Australia

Fans of the popular series Schitt’s Creek now have the opportunity to live out their own rural dreams, as the small Victorian town of Coopers Creek enters the property market.

Mason White McDougall has listed the beautiful country town up for sale, offering buyers the chance to be the largest of their own town and live just like the Rose family in Schitt’s Creek.

Coopers Creek is located about 130km from Melbourne in the Gippsland region. The sale comprises 21 lots, each raging in size from 660sq m to 12,000sq m.

Settled in the 1800s during the Victorian Gold rush, Coopers Creek was once home to 250 people.

The town, spanning 4½ hectares on the Thomson River, is said to sell for a reasonable $2.5-3m, a small price to pay to call the whole place your own.

Buyers can settle comfortably in the beautiful two-bedroom home and take in the views of their own town from the veranda.

The warm and historical Coopers Creek pub is equipped with a pool room, dining area, stage, cozy fireplaces and commercial kitchen to keep its new owners entertained.

Nature and adventure lovers will thrive in the wide open space, with plenty of opportunities for bushwalking, four-wheel driving, kayaking, fishing and much more.

“If you have ever wanted to own your own town or be the mayor of your own domain, this is the place for you,” Mason White director Ian Mason said.

“Coopers Creek offers endless opportunities including a break from city life and a change of scenery in one of Victoria’s most pristine natural environments.

“Like the Rose family, Coopers Creek could be a life-changing move for the right buyer,” Mr Mason said.

For more information, or express interest, visit www.cooperscreek.com.au.

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House prices: Interest rate rises and property downturn could be good for buyers

House prices: Interest rate rises and property downturn could be good for buyers

Rising interest rates and uncertainty are causing the property market to cool around Australia. Sydney and Melbourne markets are leading the decline at -2.7 per cent and -0.9 per cent respectively, looking at CoreLogic data.

Based on the Australian Bureau of Statistics (ABS) average property price of $1.2 million in Sydney and $966,500 in Melbourne, this reflects respective discounts of $32,999 and $8699 on the average property today.

With inflation at a 21-year high of 6.1 per cent and interest rates at 1.85 per cent and tipped to continue to rise, it seems likely there will be more pressure on property prices in the short term.

But maybe this could be a good thing. Watching the huge property run over the last couple of years, many people were either priced out of the market or felt property had become overcooked.

With prices on the decline, is it now a smart time to jump in?

State of the property market

Through 2020-21 we saw the value of all property in Australia increase by 23.7 per cent, the strongest growth seen since 2003. In contrast to the weak property market we’re seeing today, for the same time last year the average house price rose $107,000 in Sydney and $41,000 in Melbourne in just three months.

In 2022, we’ve been seeing declines driven by rising interest rates and uncertainty about how the Australian economy is going to ride out the current inflation crisis. The Reserve Bank of Australia (RBA) initially forecast a 15 per cent decline in the property market by the end of 2023, with further falls predicted in 2024.

Worth noting is that not all areas have been (or likely will be) impacted by this downturn equally. We’re seeing property prices hold up more in areas with strong demand and limited supply, and prices weaker in areas that don’t have the same fundamentals. This trend is likely to continue throughout this period of property market disruption.

The key driver of softer property prices is rising interest rates, which have increased by 1.75 per cent over the last four months adding thousands to the cost of repayments on the average Aussie mortgage. With rates forecast to continue rising through 2022 as the RBA grapples with the current global inflation crisis, further pressure will be placed on borrowers and the property market as a result.

Advantages of buying property now

With the property market softening and fewer buyers in the market, people buying property today are doing it at a solid discount to the prices we’ve seen recently.

There’s a lot of fear and uncertainty out there. In my experience helping people with their investing through up and down markets, I’ve found that this uncertainty creates opportunity.

During the height of the Covid crisis there was also a lot of talk about the potential for big property market declines, and a lot of people were too fearful to buy property. Many people were sitting on the sidelines waiting for the uncertainty to pass, convinced there would be a huge crash that would allow them to pick up even more of a bargain.

But before we knew it, the ‘crisis’ was over and the uncertainty was gone. The property market didn’t fail as far as was expected, and many people missed the boat.

In my view, the current conditions are perfect for property buyers to pick up a bargain.

Disadvantages of buying property now

That being said, buying property today does come with risk. The main one that any property buyer needs to manage in the short-term is the likelihood of interest rates rising further.

Rising interest rates for property buyers today mean that you’re highly likely to be paying more for your mortgage in six months than you are today. As mentioned above, rates are tipped to raise around 2 per cent from their current levels in the short-term – meaning you need to be prepared and ready to fund higher mortgage repayments.

There is also potential for property values ​​to fall further in the short-term. Buying and then selling property is an expensive exercise, so you never want to be forced to sell a property. But when values ​​are declining, it’s even more important to protect yourself.

When is the best time to buy property

Looking back, it’s easy to identify ‘good’ times to buy property, but nobody has a crystal ball. We never really know where the property market is going until it actually happens.

And further, while there have been times that we can see would have been better than others to buy property, values ​​have consistently risen over the long-term. That means that over any 10-year period, your asset would have increased in value.

This suggests that the best time to buy was always 10 years ago. The second best time is today.

My view is that if property is on your money road map, now is a great time to buy. You’ll be able to take advantage of the uncertainty, pick up an asset that was a good investment six months ago at a higher price, and move forward on your money journey.

Finding a good quality property is crucial, and having a rock solid plan absolutely necessary to protect your risk. But get these two things right and you’ll be set for success, and will position yourself to come out of this period of disruption in a stronger position than you went into it.

The wrap

Buying property is scary at the best of times, but when fear and uncertainty are high it’s even harder. But property has been one of the most effective ways to invest to build wealth for the last hundred or so years in Australia, and I don’t see that changing any time soon.

Take the time to get your approach right, then make it happen – your future self will thank you for it.

Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth, and author of the Amazon best-selling book ‘Get Unstuck: Your guide to creating a life not limited by money’.

Ben has just launched a series of free online money education events to help you get on the front financial foot. You can check out all the details and book your place here.

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.

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F45 co-founder Adam Gilchrist selling Freshwater, Sydney manor after stock market collapse

F45 co-founder Adam Gilchrist selling Freshwater, Sydney manor after stock market collapse

The picturesque Sydney beachside manor owned by F45 co-founder Adam Gilchrist is set to go under the hammer after the Australian fitness giant’s stunning downfall.

Mr Gilchrist (not the cricketer), who stepped down as F45’s chief executive last week amid stock plunges and company-wide lay-offs, is selling his “beachfront trophy home” at Freshwater on Sydney’s northern beaches.

The home, 52 Ocean View Rd, grew into infamy in 2018 when Mr Gilchrist and his wife Eli bought the property for a whopping $14m due to a minor neighborly dispute.

The couple had purchased a three-bedroom cottage on 50 Ocean View Rd for $5.4m in 2017 and planned to spend $2.5m to develop the property.

But neighbors complained it would not comply with building height or boundary controls, which led to Mr Gilchrist taking the extraordinary step of withdrawing his proposal and setting the matter by buying his neighbour’s bigger home for the obscene amount.

The $14m price was a record for the Freshwater suburb, with agents considering 52 Ocean View Rd’s mammoth coming out an outlier price.

But the three-storey home is again on the market, with real estate agents billing it as “unquestionably one of the finest homes and locations in Sydney”.

“Cutting-edge architectural design and an unsurpassed beachfront setting combine in this state-of-the-art luxury residence to deliver the ultimate designer beach house,” a description of the home reads.

“Set to a picture-perfect backdrop that sweeps over the surf to the ocean’s horizon and North Head, the tri-level residence showcases living spaces and lift access to all three levels and has been appointed and furnished with every conceivable luxury.”

The home’s features include five bedrooms, three bathrooms and giant retractable windows in the dining room.

Mr Gilchrist suddenly announced last week that he was stepping down as F45’s chief executive after co-founding the business with Rob Deutsch back in 2013.

The company also revealed it would be laying off 110 staff and cuttings its operational expenses, which caused its stock price to fall by more than 60 per cent.

F45 hoped that by reducing its corporate workforce by 45 per cent it could return to a positive cash flow.

Mr Gilchrist said he would be “forever grateful” as he exited the company.

“To the staff that have worked tirelessly since our inception, you have been incredible in your efforts, and I thank you for all of your support,” Mr Gilchrist said in a statement.

“To the investors that have joined us along our journey, I thank you for your commitment to F45.

“Lastly, I am forever grateful to our franchisees who deliver the world’s best workout each day to F45 members around the world.”

Mr Deutsch, who stepped down as chief executive and sold his shares in the company in 2020, said there were “enormous issues needing fixing”.

“Never in my wildest dreams could I have imagined this,” he wrote on Instagram.

“When I exited, and sold out of F45, I left a healthy, phenomenal, beast of a business. All the way from the company culture to the heart beat of the business… the workouts. F45 was special.

“I genuinely hope all of the 110 laid-off staff, find happiness and opportunities elsewhere.”

F45 was a global fitness powerhouse before its stock shock last week, with more than 1500 studios in 45 countries and Hollywood superstar Mark Wahlberg among its investors.

Mr Gilchrist made $500m overnight when the company went public on the New York Stock Exchange in July last year.

His northern Sydney home will be up for auction on August 27.

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Melbourne single mum struggling to pay extra $360 a month after RBA interest hike

Melbourne single mum struggling to pay extra $360 a month after RBA interest hike

A single mum’s “dream” of becoming a homeowner has become more like a nightmare as she struggles to survive amid the rising cost of living.

Jodi Cameron, 40, from Melbourne, currently has nothing in her bank account after building her house cost more than expected. She can’t even afford to complete the house, with her driveway unfinished because she ran out of cash.

On Tuesday afternoon, she was hit with more bad news; the Reserve Bank of Australia had increased interest rates again, for the fourth month in a row.

It means the single mum, with two daughters aged four and eight, must now fork out an extra $140 every month to pay back her mortgage.

In total, since the central bank started increasing interest rates in May, the family is now paying back an extra $360 a month — money it desperately needs.

“It’s just horrible,” Ms Cameron told news.com.au.

“I do find myself in a situation where paying rent and a mortgage and daycare fees, there’s nothing left.”

Currently, her savings account stands at $0, she said.

The mum worked throughout the Covid pandemic as a disability support worker and blames her current predicament on one thing — missing out on a government grant.

She had factored in receiving a $15,000 grant to help her build her own home but missed out, leaving her financially wrecked.

“I just wanted to own my own home,” Ms Cameron explained.

“It’s just disgusting, it’s so frustrating, I work my guts out, all I wanted was the great Australian dream.”

Her variable interest rate has gone up from 2.79 per cent to 4.5 per cent in the past three months, and is set to go up even further after the rate hike on Tuesday.

“I’m not on a fixed mortgage, I don’t know how I’m going to do it,” Ms Cameron said.

“I’m probably going to have to pull my [youngest] daughter out of daycare because I can’t afford daycare. That also means, how am I meant to work from home with a child?”

As a single mum with no family to fall back on, Ms Cameron had resigned herself to renting but in 2020, she was given hope that she might be able to break into the property market.

The federal government announced the HomeBuilder grant scheme in a bid to increase the disruption to the economy and the building sector during Covids, where eligible homeowners received $15,000 to form part of the payment for a building project for their primary residence.

Ms Cameron met all the criteria for the grant so bought a $263,000 block of land in Lang Lang, a regional town southeast of Melbourne, in August 2020 in the hopes of setting herself up financially for the future.

“I got on the low deposit scheme, I didn’t need a massive deposit,” she explained.

Then in March the following year, she signed a build contract which cost $300,000 for a four-bedroom, two-bathroom home.

She only needed a 5 per cent down payment for the land and the build contracts and was expecting the extra $15,000 from the grant to provide a helpful buffer to afford the progress payments.

But then she logged back onto the HomeBuilder online portal and was devastated to discover she had missed a key due date — which her broker and bank had never mentioned to her.

“I missed a portal cut off date that was never shown or advertised anywhere,” Ms Cameron lamented.

As a result, she was not able to be part of the scheme.

Near the end of her build, the mum ran out of funds and couldn’t afford to pay for a driveway.

“I’ve got no driveway, it’s just mud, I can’t afford it, it’s not nice to have that money you relied on ripped away from you,” she added.

“I owe the real estate the last month’s rent which I can’t pay.

“I assumed I would have this $15,000 to help me out, I don’t have it. This grant meant a lot.”

The mum is now waiting with bated breath as the Reserve Bank is expected to keep hiking interest rates till the end of the year.

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Rental properties Australia: How much rent has increased in your suburb

Rental properties Australia: How much rent has increased in your suburb

Renters are suffering from “ridiculous” rent hikes due to a chronic housing shortage, as city-dwellers flood regional markets and landlords flip rental properties to short-term housing to accommodate an influx of tourists.

Suburb-level analysis collected by PropTrack exclusively for The Oz revealed Killcare Heights on the central coast of NSW experienced the greatest rent increase over the past 12 months at 72.6 per cent, followed by Rainbow Beach on Queensland’s south coast (72.5 per cent) and Stahan in western Tasmania (68.4 per cent).

Killcare Ray White agent Sue Rallis said some local properties have risen from $700 to $1500 a week since the pandemic began, due to Sydneysiders making the most of a Covid-induced at-home lifestyle and moving into regional areas.

“People are happy to come out of the cities and move regionally, which has pushed up the rent over the last year or two,” she said.

“It’s been hard for the locals. They have been living in an area that a lot of people didn’t want to live in, and have been paying quite low rents there over the years. Now it’s very difficult for the locals to afford some of the rents.”

READ MORE ON THE OZ:

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Median weekly rental prices in June were up 7 per cent on the same month last year, marking the strongest annual rental growth recorded since before 2015. Rising prices have been felt the most regionally, where they increased 11.4 per cent year-on-year to June, compared to 4.4 per cent in the capital cities.

This came as the total supply of rentals dropped 27.7 per cent below its decade average.

PropTrack director of economic research Cameron Kusher said a devastating lack of supply has driven prices upwards, as fewer owners put their second properties up for rent.

“A lot of people who have bought quote unquote ‘investment properties’ aren’t necessarily buying them to make them available for rent, they’re buying them as second homes,” he said. “You’ve also got the added pressure now that domestic and international travel is back that the supply of rental stock is spinning out because people are putting their properties into short term rental accommodation, rather than long term.”

Mr Kusher said rental growth in inner-city areas has been “pretty weak” over the past two years as tenants stayed put, but has suddenly increased over the past six months after long term lockdowns ended.

“We have seen again in Sydney and Melbourne in those inner and middle ring markets in the apartment markets in particular, it has been very hard to rent out a property over the last few years,” he said.

“So, a lot of people sold out of their investment properties, and we haven’t seen a lot of developers building new one and two bedroom apartments. Therefore, we haven’t had that increase in supply we needed to keep up with demand.”

When renewing her lease last month, Leane Van Essen’s landlord requested the rent go from $450 to $550 a week for a one-bedroom apartment in North Sydney.

Unable to afford the “ridiculous” 22 per cent increase, the 29-year-old was given 60 days to find a new apartment.

“I had to find a new place super quickly, but then I got Covid and couldn’t go look at apartments, which was incredibly stressful,” she said. “They kept calling me, trying to rush me out, even though I still had my 60 days.”

Eventually, Ms Van Essen was forced to find a stranger online to move in with, settling in a two-bedroom apartment in Sydney’s inner-city suburb of Mascot for $750 a week.

Similarly, Ellen Mezger, 25, was asked to bump up her rent for a two-bedder in Sydney’s Waterloo from $620 to $800 a week when her lease expired this month.

She said “a lot of sacrifices”, including giving up her gym membership, would have to be made if the rent increased that much.

Kusher said it would be a while before rent costs dropped again as landlords feel the increasing burden of skyrocketing interest rates, and pass them onto their tenants.

“Landlords will be trying to pass on as much of those increased costs as they can to their renters, so that’s something that renters are going to be facing,” he said.

“Obviously, for renters, there’s quite a lot of incentives to try and buy your first home. The government’s got a Shared Equity scheme, they’ve got a low deposit scheme in NSW from January next year, you’re going to be given the option to pay land tax as opposed to stamp duty. At some point, people will look at it and go, you know, I can be slugged with higher rates every six months, or maybe it’s time to take up one or two of these schemes and buy.”

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Real estate: Property investment firm under fire for ‘cringe’ email celebrating rising rent repayments

Real estate: Property investment firm under fire for 'cringe' email celebrating rising rent repayments

A property manager has come under fire after appearing to boast about upping rent in an email to tenants.

Property investment firm Ironfish sent an email to its customers last week stating the highest weekly increase and average rent increase in Melbourne in June.

“Achievement in June: Biggest rent increase – $225 per week,” the email states, before adding that the company leased 1,103 properties in the last financial year.

The email also includes two references, one from a landlord and another from a renter, which suggests there was no target demographic for the email.

A renter who received the email posted a screenshot to reddit, with the caption: “My rent just went up $400 a month and the agency sent me an email bragging about it.”

The email is accompanied with a photo of two young children jumping on a bed, having a pillow fight with smiles on their faces.

It’s caused a stir online, with both tenants and landlords disapproving of the email, and many left shocked after reading its contents.

“As an owner and provider that’s cringe. If my real estate (agent) boasted like that I’d be out,” one user said.

“I received the same email and had the same disgusted feeling, and I’m an owner (just not with them),” said another.

“That’s just disgusting. They are literally celebrating ripping off desperate people. It’s just deplorable,” a third commented.

Meanwhile others have raised concerns about how much the rent had increased by.

“Can they actually do that large an increase? I mean legally? What do they have in your lease on how it’s calculated? Fairly sure Tenants Victoria may have a bit more to say about it,” one user commented.

“How can a $225 rent increase be justified?” another user questioned. “Heck, even $98 is a lot.”

“So nuts. Ours tried to raise it by $90 a month which I thought was ridiculous and we just said no and they agreed to stay the same if we signed a 12-month lease,” another said.

News.com.au has contacted Ironfish for comment on the email.

According to Consumer Affairs Victoria, landlords are not allowed to increase rent during a fixed-term agreement unless stated otherwise, and have to give tenants at least 60 days’ notice.

The law doesn’t state how much a landlord can increase weekly repayments by however it should be changed in line with the consumer price index, average rent prices, by a fixed percentage or by a fixed dollar amount.

Renters also have the right to challenge their increase if they believe their repayments have been raised too high.

Despite the sharp increase stated in the email, data from CoreLogic suggests Melbourne has the cheapest rental market with a typical home costing a renter $480 a week.

The rising cost of living, low vacancy rates and increasing interest rates are some of the reasons why landlords are choosing to hike weekly rent repayments.

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Sydney couple build $1.2m property portfolio in just three months

Sydney couple build $1.2m property portfolio in just three months

A Sydney couple, who had been priced out of upgrading their family home, have managed to create a property portfolio worth $1.2 million in the space of just three months.

Amit Kumar and his wife Astha had bought a townhouse in the Sydney suburb of Quakers Hill for $610,000 six years ago.

Despite saving hard and their family home growing in value to $780,000, the couple who have two children aged three and five, discovered Sydney’s skyrocketing property market would mean it was impossible for them to find a new property in the city.
They had discussed the idea of ​​buying other homes but were nervous.

“It was the fear of the unknown,” Mr Kumar said. “You just don’t know what to do, you don’t want to overpay, you don’t want to buy the wrong place and then have it vacant for long periods and with no tenants,” he told news.com.au .

“You don’t know where the growth is going to be and you don’t know what the projects are in certain areas and things like that.”

But the couple met with a buyer’s agent and took the plunge in April, snapping up two properties in that month alone.

The first was in Adelaide in the southern suburb of Christie Downs, a three-bedroom, two-bathroom house.

They purchased it for $425,000 and it has already grown in value by approximately $60,000.

The second property was purchased in Toowoomba, Queensland – a three-bedroom house for $455,000, which has also jumped in value by $50,000.

“We were very nervous, particularly because they actually settled very close to each other… the settlement was two days apart,” he said.

“And also complicating things further was the Easter break and the Anzac Day long weekend happened as well, so it was all on short notice.

“I think at the time there was an election coming up, we didn’t know what the policies were going to be, we didn’t know what the interest rate was doing and how it’s going to affect us.”

But the gamble has paid off so far with Mr Kumar revealing they had 20 rental applications for the Adelaide house before the open home was even held.

“So we had a very large number of applications to actually choose from and we actually managed to get more than what we actually hoped to achieve in terms of rent,” he said.

“So when we bought the place, we were told $410 is a realistic expectation in terms of rent, but we actually ended up achieving $420.”

The Toowoomba home was already tenanted but Mr Kumar said it was at a significantly lower amount to the market rate.

They were told they would get $450 for the place, but after the previous tenant moved out, it was only empty for three days and then rented out for $470, he said.

Their latest buy has been in Bundaberg, a house for $387,000 snapped up in July, which is expected to rent out for $460.

All three properties were also bought sight unseen, Mr Kumar added, while the rents cover their mortgages.

The couple paid $65,000 to $70,000 for each place including stamp duty, using a 12 per cent “sweet spot” deposit recommended by their mortgage broker.

Mr Kumar, who works in sales, said the couple still plan to use their portfolio as a “stepping stone” to buy a bigger place in Sydney in the next 12 to 24 months, but they won’t stop there.

The 39-year-old never believed it would be possible to build a property portfolio but now the couple have a goal to buy eight to 10 properties in the next five to seven years.

He advised others to get into the property market as soon as they can, adding people shouldn’t be influenced by the market, but instead focus on the long-term goal of building value in their property.

“One of the things the buyer’s agent said to me and it’s just stuck out in my mind is that the earlier you buy, the sooner you buy, then the more time you’re allowing for capital growth and timing is not as critical as just getting into the market,” he said.

“Because if you buy the right property at the right price, timing is not such an important factor.

“All three properties that he’s bought for me, we’ve actually managed to get all of them under market value, so what it means is indirectly like even already now by the time we settle, we already have some equity.”

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