Hunter Renters Spared Price Hikes

By MATT JOHNSTON

Figures from Housing NSW show the Hunter lags behind the rest of the state in rent increases. Since the start of 2015, rent has risen across the state at an average of 15%. While Sydney saw the greatest increase at 40%, the Hunter only saw a rise of 5%.

The cause of the sluggish growth is being put down to the number of investors providing rental properties in the region. According to Wayne Stewart from Century 21, a "steady supply of new stock to the market, which has kept rising rents to a minimum".

 Wayne says this is because "Newcastle has been the focus of investment for probably the last three years". As a result, new rental properties are coming onto the market every week, meaning supply more than meets demand.

"There's more choice for tenants coming into the marketplace, and that should stay that way for a while because Newcastle and the Hunter are still very strong from an investment point of view."

While this has all been good news for renters, investors might be less thrilled. Rental property vacancy is at 4% across the Hunter, which is slightly above the 'normal' rate of 2-3%. Wayne says investors "should do your research on what are the areas with the lowest vacancy rates to make sure you've got some strong growth and consistency of rent in your investment property".

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Newcastle real estate about to be turned on its head

BY JESSICA ROUSE

Newcastle real estate could be turned on its head, with new online real estate agent Purple Bricks starting in the city.

Unlike traditional agencies, the U.K based company ask for a flat fee of $4,500 and offer a dedicated expert to guide you through the sale process until your property is sold. When you sell at auction, the fee goes up to $5,870.

The company is set up in other cities throughout the country offering an alternative to traditional real estate agents, being cheaper and apparently more accessible to vendors.

However, Hunter Chairman of the Real Estate Institute of NSW Wayne Stewart believes the company won't last long at all.

"It's been happening for 20 odd years now from time to time we see start out companies that have a good idea and they come into the marketplace and disrupt the marketplace for a short amount of time and then they go as quickly as what they've come into the marketplace."

He adds that being an online service, you're less likely to have an agent with you every step of the way to guide you through and point you in the best direction.

"You don't get much in the way of marketing, you don't get much in the way of service and in a lot of these situations the vendor actually has to show the buyer themselves. You don't have anybody there to negotiate the sale for you skilfully whereas with a real estate agent it's a very holistic service," said Wayne Stewart.