March 2025 Newsletter
HEY NEIGHBOUR!
Hello and welcome to the latest edition of The Neighbourhood Property Collective newsletter. It’s been a little while since our last update in December, but we’re back and excited to keep you informed on all things property management, market trends, and everything in between.
A lot has changed in the world since our last update. The war in Gaza has finally come to an end, and there is renewed hope that the Ukraine-Russia conflict may also be nearing resolution. Meanwhile, the USA has a new President, (lots to unpack with him) bringing potential shifts in global markets and policies. Closer to home, Australia is preparing for a federal election, with the official date set to be announced soon—something that could bring key policy changes impacting the economy and property sector.
On a lighter note, AFL season kicks off this week, and footy fans everywhere are gearing up for another big year. As a passionate Carlton supporter, I’m hoping the Blues can build and push even further in 2025—fingers crossed!
On the property front, the rental market remains dynamic as we move into autumn. We’re seeing continued demand for quality rental properties, and we’ll be sharing key insights on how to keep your investment performing at its best in this ever-changing landscape. In this edition, we’ll cover:
Market Trends and What They Mean for Your Investment
The rental market remains competitive as we transition into autumn. Demand for quality rental properties continues to be strong, with low vacancy rates in many areas. However, rental affordability pressures mean tenants are becoming more selective, making well-presented and well-maintained properties more desirable. In the current market, we’re seeing:
- Sustained rental demand – Properties in prime locations or with sought-after features (such as energy efficiency, additional storage, or outdoor spaces) continue to perform well.
- Steady rental growth – While rental prices have risen in recent years, some areas are stabilising. Setting the right price is key to securing long-term tenants.
- Regulatory focus on renters’ rights – Governments continue to introduce policies that balance investor interests with tenant protections, so staying compliant is essential.
Strategies to Maximise Rental Returns in the Current Climate
To ensure your investment remains competitive and profitable, consider the following:
- Regular Maintenance & Upgrades – Small improvements, like fresh paint, updated fixtures, and energy-efficient appliances, can boost rental appeal.
- Lease Reviews – Reviewing lease terms and market rates ensures you're achieving optimal returns while keeping good tenants long-term.
- Energy Efficiency Focus – With increasing energy costs, features like ceiling fans, LED lighting, and improved insulation can make your property more attractive to tenants.
- Proactive Property Management – Staying on top of repairs and addressing tenant concerns promptly leads to longer tenancies and reduced turnover costs.
Key Updates on Legislation and Compliance for Landlords
Regulatory changes continue to shape the rental market. Some key areas of focus include:
- Minimum Rental Standards – Ensuring properties meet updated requirements for heating, ventilation, and safety.
- Rent Increase Regulations – Some states are tightening restrictions on frequency and justification for rent increases.
- Pets in Rentals – There’s been an ongoing push for landlords to provide reasonable grounds if refusing pets, so understanding your rights and responsibilities is crucial.
If you have any questions about how these changes may impact your property, we’re here to help!
Carmela
MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.
- Australia interest rates: What would a Reserve Bank interest rate cut mean for the property market (theage.com.au)
Key takeaways from the article- Property Prices Expected to Rise – A round of Reserve Bank rate cuts could push property prices up by as much as double digits, particularly in weaker markets like Sydney (11.4%) and Melbourne (9.2%).
- Limited Relief for Mortgage Holders – A 0.25% rate cut would reduce monthly repayments by $77 on a $500K mortgage and $154 on a $1M mortgage, but experts say this won’t significantly ease affordability pressures.
- Modest Boost to Borrowing Capacity – A single person earning $100K per year could borrow $12,000 more, while a couple on average incomes could borrow $23,100 more, but this is unlikely to solve the housing affordability crisis.
- Higher Auction Clearance Rates & Market Activity – Lower rates are expected to boost buyer sentiment and increase auction clearance rates, with Sydney and Melbourne already seeing improved numbers in early 2025.
- Sydney property: Long’s Lane, The Rocks heritage terrace homes renovated to their former glory (theage.com.au)
Key takeaways from the article- Historic Homes in The Rocks Restored – A row of 18 heritage houses and shops on Long’s Lane, dating back to 1806, has been carefully restored after being saved from demolition by a community campaign.
- Rich and Layered History – The lane was originally home to convicts, later Māori whalers, and eventually sailors and gold rush migrants, with historical records of people hiding from authorities under floorboards.
- Modern Adaptation with Heritage Preservation – The restoration kept original architectural features intact while updating interiors for modern living, ensuring subtle contemporary upgrades.
- Exclusive Property Offering – The houses are now the only privately-held Torrens title homes in The Rocks, with prices ranging from $1.4M for a one-bedroom stable to $9M for a grand five-bedroom residence.
- Australia house prices: How much more home buyers can spend after change to HELP debt home loan rules (theage.com.au)
Key takeaways from the article- Modest Increase in Borrowing Power – Changes to lending standards will disregard HELP debt in home loan assessments, adding about $20,000 to $25,000 to the borrowing capacity of an average buyer with student debt.
- Minimal Impact on Housing Affordability – While this change may help some buyers on the edge of affordability, experts believe it won’t significantly improve the ability to purchase homes, given high property prices.
- Potential Impact on Housing Prices – If the Reserve Bank cuts interest rates, any benefits from this policy could be offset by rising house prices, making affordability even more challenging.
- Debate on Ignoring HELP Debt – Some experts question whether HELP debt should be disregarded, as it still reduces disposable income, while others argue it is less risky than other types of debt.
