Newspaper article Daily News (Warwick, Australia)

It's a Buyer's Market; Cheaper to Purchase Than Rent

Newspaper article Daily News (Warwick, Australia)

It's a Buyer's Market; Cheaper to Purchase Than Rent

Article excerpt

Byline: Jayden Brown

INVESTORS and buyers are the big winners in Warwick's mixed bag property market, as the gap between housing prices and rents continues to widen.

Real estate agents are reporting houses selling for less than $250,000 with rents climbing to $300 per week.

According to realestate.com.au, the median house price in Warwick fell to a three-year low of $242,000 last year.

Meanwhile, the average rent in Warwick continued at a steady $260 per week.

The good news for investors is the rental yield (rent as a percentage of median price) jumped to a three-year high of 5.6%.

Figures from RP Data also paint a mixed picture for the Warwick property market.

While the median house price in Warwick for February was up slightly on last year's at $234,000, it's well below the $290,000 average of February 2014.

Warwick real estate agent Darryl Evans described the figures as "a joke".

"Rents are going up because people are not leaving the rental market to buy and that's putting pressure on supply," he said.

"I can sell you a house today for $185,000 rented at $280 per week."

Fellow real estate agent Helen Harm said the different between house prices and rents depended on the quality of the house and how desperate the owners were to sell.

Mrs Harm said the old rule of dropping the zeros on your property to work out the cost of rent had changed.

"We're looking at a $30 per week difference, so a $280,000 house being rented for $315 per week," she said.

"That's different to just three or four years ago.

"For the money you pay for rent in Warwick you get a damn good house."

While properties in the region are selling, prices have dropped back a bit

Mr Evans said he recently sold a home on Bourke St for just $140,000.

"I just sold a property for $210,000 that last year was knocked back at $240,000," he said. …

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