Mercury (Hobart) - Property

BUY OR RENT

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House of the week.......................................................6, 7

Commercial............................................................ 47, 48

Open homes................................................................. 46

JARRAD BEVAN

NEW home buying intentions data from a big four bank has put a spotlight on Hobart’s cheapest options when buying or renting.

And it shows an uptick in investors who have goals to buy in the near term.

National Australia Bank Q2 research found areas popular with first-home buyers — Sorell, Howrah, Moonah and Kingston — each show houses are currently more affordable to buy than rent.

Glenorchy units also provide a cheaper opportunit­y to service a mortgage rather than pay rent.

Given the relative affordabil­ity of housing in Hobart, more housing opportunit­ies present themselves compared to other markets across Australia, the report said.

Per realestate.com.au data the cost to rent in these hotspot suburbs was in the $470 to $520 per week range.

The asking annual median rent in the suburb Sorell is $470, Howrah $500, Moonah $493 and Kingston $520.

A unit in Glenorchy has a median rent of $380 per week.

The report noted areas outside of the city where mortgage payments were less than rents including Queenstown, Ulverstone, Wynyard, Launceston and Devonport among others.

NAB home ownership executive Andy Kerr said first-home buyers have claimed a significan­t share of the market over the past 12 months.

He said record low interest rates and first-home buyer incentives like the First Home Loan Deposit Scheme have driven strong demand.

“We have seen through the pandemic, particular­ly with first time buyers, that flexible and hybrid working is providing more options than they have historical­ly had,” he said. “Our research shows prospectiv­e buyers shift in where they want to buy and demand from first-home buyers has been the strongest we’ve seen in a generation.”

Locally, the most recent Real Estate Institute of Tasmania report showed first-home buyer numbers were stable at 14.5 per cent of all sales – 430 properties over the past quarter.

Nationally, NAB found that the number of Australian­s who think now is a good time to buy dipped from 40 per cent to 29 per cent from Q1 to Q2.

In Tasmania, 25 per cent say now is a good time to buy down from 36 per cent in the previous quarter. There was a similar dip for those considerin­g an investment property, from 40 per cent back to 26 per cent.

But when asked, “do you intend to buy in the next 12 months?” 8 per cent of Tasmanian investors said yes, up from 3 per cent in the previous quarter.

Mr Kerr said while house prices are rising, there’s still plenty of opportunit­ies for Australian­s to buy their dream home rather than rent it.

“The simple reason for this is the record low rates on offer, with many mortgage rates still coming with a 2 in front of them,” he said.

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