Acceptable Rental Vacancies

Dear Mike,

Especially like the "Property Time Clock" on the Quartile site.

Though I would attach it for everyones ease of reference.

Cheers,

Sunstone.

/forums/photopost/data/506/32property_clock.jpg

[ EDIT: moved image to photo gallery and replaced with image link - Sim' ]
 
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Hey Sunstone !

Couldn't find that clock on the site. Can you give me directions ?

Mike,

Once again you have delivered the goods ! Cheers.

Thanks
PIppety:D
 
Dear Pippety,

Got an e-mail reply along with the new edition of the "QLD Property & Lifestyle" Magazine in the same week.

Good to know that it wasn't an ominous sign and still nicely bubbling along.

Cheers,

Sunstone.
 
Originally posted by Rolf Latham
Hiya

When doing risk and sensitivity analsis with my clients we use a 10 % vacancy rate.

If your investment strategy cant stand that you should stay out :O)

Just my opinion of course.

ta

Rolf

My lender worked on a 25% vacancy rate for my loan then again I don't have another job for income. Numbers still added up ok for me.
 
Quite often, the rental vacancies are very rubbery. The way I use to check is simply to call a number of agencies in the area, and ask to speak to the property manager.

I ask how many properties they have on their rolls, and how many do they have vacant now. Do that three of four times, and you have a very current snapshot of the area.

Jas
 
If we take a look at that property clock, where are we at now?

It seems to me that while our gov't would like to raise interest rates, as per the clock, because of events overseas they are not prepared to.
The newspapers are saying we have peaked , clearance rates are down, rental vacancies are up, the clock says we should have rising interest rates.
I suppose we could use a comparison to O/s rates and our rates and compare the difference in the rates now and 6 months ago. Where, previously the gap between our rates and O/s was quite small, it is now noticeably larger, in fact I think I read somewhere that it is a record difference between our rates and the USA.

Where do you think we are on the clock?

Macca
 
Macca,

It's a very interesting question especially since there is even talk now that the next rate move may be down ...... what happens if rates go down ? Will people be spurred on again to continue the house price increases ?

At least a couple of rate rises may have kept more first home buyers out of the market to continue renting. It would be good to see rents start to go back up again.

I think the answer is that the clock doesn't really apply or the variable on the clock seem to be different in this cycle. It's not a cycle that has been self perpetuating but more that it has been induced ...?

Just my thoughts anyway.

PIppety
 
Is it worthwhile looking at the clock again?

Found the property clock in the gallery....just wondering how it might apply in the current market, with rising interest rates and low rental rates (especially in Cairns at present)?
 
Hi Sailor
I found this as well then hyperlinked to the post. What do you think now, about 7.30 ?

I don't know enough about how the property clock works. As for Cairns...tis a bit mixed. We've had those recent interest rates, plus rental vacancies getting worse...now below 1.5% in Cairns and even less than that in Innisfail. Prices haven't decreased. So we didn't go through steps 4 and 6, but just went straight through to 7:30 as you suggest.

However over the next 12 months I predict there will be more construction in Cairns, with or without a decrease in interest rates.

Perhaps someone more knowledgable about how the clock really works could explain what is happening here?
 
Maybe its a good reason to bring in daylight savings and time zones into Queensland! The stuff I have been doing loan wise in se qld has been pretty good as of late.

:)
 
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