Brisbane - to soar again?
- Thread starter alexlee
- Start date
How much did they jump?
Walking on sunshine this arvo ?
Yes and no. I don't plan to sell, and won't be refinancing at least until next year.
After a while, it really all seems like monopoly money. After the first steps have been made and you know you're going to be rich by 50 or 60 if you just hold on, the objective shifts. Another $20 or $30k move in a property doesn't excite as much as it used to.
The next goal is to invest full time (and be profitable doing so).
Alex
I don't get what you are saying? it's a knock on effect. In brisbane, we have a case of both rent and property prices going up.
Properties going up will price buyers out of the market which means demand for rentals will go up.
all good!
Dont let Hired Goon catch you saying that!
BIS Shrapnel still bullish on brisbane
http://www.news.com.au/business/story/0,23636,22404851-462,00.html
http://www.news.com.au/business/story/0,23636,22404851-462,00.html
Based on something I saw yesterday, which ended up being one of the most ridiculous spectacles I have ever witnessed. I think the mini-boom here still has some way to go. Whether that's another few months or another twelve months I dunno, but I think it will be with us until the end of the year at least.
Sue, it's interesting that you say that rents are moving, cause in the areas I look at, rents are stagnant and prices are surging forward. For example, properties I looked at a few weeks ago that would rent for 240 p.w. were getting 280 - 290K but now are still getting 240 p.w. but asking prices are now 310 - 340K. This is literally in the space of a few weeks.
Not that I'm complaining though, if you know what I mean.
Mark
Sue, it's interesting that you say that rents are moving, cause in the areas I look at, rents are stagnant and prices are surging forward. For example, properties I looked at a few weeks ago that would rent for 240 p.w. were getting 280 - 290K but now are still getting 240 p.w. but asking prices are now 310 - 340K. This is literally in the space of a few weeks.
Not that I'm complaining though, if you know what I mean.
Mark
Hi Mark
Just a quick comment, when I'm talking to the PMs about rentals and clients re rentals both are coming back with a simple similar belief.... no/low supply.
For most properties there are a few applications going into it for tenants.
So just wondering out loud, lack of supply, rental 'shortage' (per se), rates 'trending' upward, higher holding costs for landlords... etc etc.... leading to more rent.? I.e. say you get 5 applications at 300 p/w but you might find 2 of the 5 willing to go to 330 pw...
Wonder what the vacancy rates are...
Just a quick comment, when I'm talking to the PMs about rentals and clients re rentals both are coming back with a simple similar belief.... no/low supply.
For most properties there are a few applications going into it for tenants.
So just wondering out loud, lack of supply, rental 'shortage' (per se), rates 'trending' upward, higher holding costs for landlords... etc etc.... leading to more rent.? I.e. say you get 5 applications at 300 p/w but you might find 2 of the 5 willing to go to 330 pw...
Wonder what the vacancy rates are...
Hi Luke,
I just go on what I see whilst doing research.
Mark
I just go on what I see whilst doing research.
Mark
rent will not move as quickly as prices because you are only allowed to increase $10 to $15 max by law for existing tenants/lease renewals.
We are not happy with our property manager atm. They just leased out a house new application for $330 p/w. The house is in runcorn, 5 mins to coles, warrigal rd and anya gent in this area should be able to lease it out within 48 hrs. They didn't ask us first.
I think with this mini boom even the agents are a bit confused.
It's my mil's property and we've had plenty of offers for $380 p/w no agent. The house is worth at least $450k. Next door only has 3brs and sold within 24hrs for $420k.
it will take awhile before rent prices go up across the board but definitely no shortage of tenants.
Our property manager doens't even have 1 property on her books for rent atm.
We are not happy with our property manager atm. They just leased out a house new application for $330 p/w. The house is in runcorn, 5 mins to coles, warrigal rd and anya gent in this area should be able to lease it out within 48 hrs. They didn't ask us first.
I think with this mini boom even the agents are a bit confused.
It's my mil's property and we've had plenty of offers for $380 p/w no agent. The house is worth at least $450k. Next door only has 3brs and sold within 24hrs for $420k.
it will take awhile before rent prices go up across the board but definitely no shortage of tenants.
Our property manager doens't even have 1 property on her books for rent atm.
Hi Sue,
That's good news for me, I'm about to put a room on the market - good to know that rentals are still tight.
Mark
That's good news for me, I'm about to put a room on the market - good to know that rentals are still tight.
Mark
I bought 2 x IP's in Ipswich area (Goodna, Redbank Plains) in April 07. Getting them re-valued this Friday (14th) as part of a portfolio refinance/restructure. I'll be keen to see what sort of growth they have had in 4-5 months.
I will post the result when I get the new values if anyone is interested.
Martin
I will post the result when I get the new values if anyone is interested.
Martin
will back those comments...
vacancy rates are unmeasurable at the moment - we only run a small rent roll, but the properties that come onto the rental market barely make it onto the net and those that do don't last long at all.
re your other statement - that fine line regarding rental auctioning is getting crossed regularly now. We won't do it, but are hearing about it occurring more and more frequently in our patch of the world.
room rentals have gone up too...but I guess it depends on the area. My sil rents one room out to students (eight mile plains). She used to rent $80week but now it's $150 p/w!!
we will be moving into our one of our ip's soon and it has 5 brs so I may rent out 2.
I think for all landlords in brisbane...you really need to have a good idea of the market atm...even our property manager is a little confused. I have got 3 rent appraisals for my IP. My property manager estimates $450 p/w, another agent $430 p/w and then the local area agent who has actually recently leased another house on the next street at $520 p/w!
Some agents, like mine, becomes complacent...I guess it's rare to have rent jump that much. They expect $10 to $20 not $50 to $100. Problem is that some PM's only know about rental. Now, I will only deal with the principle (I used to only deal with him until his agency expanded). He knows the rental and the sales market and can at least correlate the value of the property against the rental and work out what the rental should be.
You can have two exact same houses on the same st with on rented at $380 and the other one at $450...what do you do? kick out your tenant when lease expires and re-lease it at $450 or renewal it $15 increment every 6 mths.
sue78,
We had a low rent problem when we bought an IP in Goodna in April. The PM re-let the property for $220pw, just before it was listed for sale. Luckily it was only a 6 month lease, .... I have just discussed an increase and the PM figures a $20 increase at this stage is all that can be justified.
The tenants have been in for over 2 years now, so although we want market value we have to be careful not to push them out as well. Since agreeing to the $20pw increase I still believe we are $10-$15pw short of market value, but hopefully time and a few more increases can rectify this.
Living in NSW doesn't really help as we only have rea.com.au to get a feel for rent values and so we are in the hands of the PM more than I would like.
Martin
We had a low rent problem when we bought an IP in Goodna in April. The PM re-let the property for $220pw, just before it was listed for sale. Luckily it was only a 6 month lease, .... I have just discussed an increase and the PM figures a $20 increase at this stage is all that can be justified.
The tenants have been in for over 2 years now, so although we want market value we have to be careful not to push them out as well. Since agreeing to the $20pw increase I still believe we are $10-$15pw short of market value, but hopefully time and a few more increases can rectify this.
Living in NSW doesn't really help as we only have rea.com.au to get a feel for rent values and so we are in the hands of the PM more than I would like.
Martin
mystery,
yeah we have the same problem too. With existing ip's, a $20 increase is already consisdered a lot.
Just have to be careful for new rentals that you are getting the correct market rent.
Our Ip's are under rented for betwen $20 to $50 p/w and it will take us over 24 mths to increase the rent. But it's good to know that there's room for increases
yeah we have the same problem too. With existing ip's, a $20 increase is already consisdered a lot.
Just have to be careful for new rentals that you are getting the correct market rent.
Our Ip's are under rented for betwen $20 to $50 p/w and it will take us over 24 mths to increase the rent. But it's good to know that there's room for increases
