From: David Gordon
With the FHOG to continue "indefinitely" one has to wonder about its effect on the rental market.
Here in Adelaide I have noticed that properties are taking much longer to rent out - sometimes well over a month!! This seems to be as a result of high expectation of a good return to cover the high prices paid for IP's.
The property market in my area seems extremely hot with great competition at auctions and sale prices nearly always exceeding the reserves. IP's seem to be the flavour of the month(s) and this coupled with the FHOG taking renters out of the market something has to give. Additionally, new stock is coming on all the time with units/townhouses springing up everywhere.
At the risk of being called a spoilsport I can't but feel that we are heading for a "correction" and over-extended investors could get seriously burnt.
We need those tenants but they are disappearing fast and those remaining in the pool are fed with a huge array of stock.
How do others see the rental market at the moment ????
Cheers
DaveG
With the FHOG to continue "indefinitely" one has to wonder about its effect on the rental market.
Here in Adelaide I have noticed that properties are taking much longer to rent out - sometimes well over a month!! This seems to be as a result of high expectation of a good return to cover the high prices paid for IP's.
The property market in my area seems extremely hot with great competition at auctions and sale prices nearly always exceeding the reserves. IP's seem to be the flavour of the month(s) and this coupled with the FHOG taking renters out of the market something has to give. Additionally, new stock is coming on all the time with units/townhouses springing up everywhere.
At the risk of being called a spoilsport I can't but feel that we are heading for a "correction" and over-extended investors could get seriously burnt.
We need those tenants but they are disappearing fast and those remaining in the pool are fed with a huge array of stock.
How do others see the rental market at the moment ????
Cheers
DaveG
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