My wife and I are just starting this property investment lark, (albeit a bit late in life - early fifties...) and we are concerned about the fact that every one and their dog seems to climbing on the investment property band-wagon. This would seem to result in a plethora of properties for lease, as it seems here in Newcastle. Am I overly concerned, or will the abundance of properties for lease satisfy a growing market? There are THREE units for lease in the one complex near us.
Glut of properties
- Thread starter Pilot
- Start date
I think it's a wide spread problem - abundance of rentals.
But, you'll get a tenant if you price it right, or drop the rent a bit, or have something better to offer than the rental down the road.
Do some homework, be a prospective tenant & see whats on offer, go have a look. Find out from rental agents what tenants are looking for.
Also, recent news reports state first home buyers are being priced out of the market by the incredible price rises - the other option they have - to rent from you & me!
Most of all - be positive & do your homework.
KANGA
But, you'll get a tenant if you price it right, or drop the rent a bit, or have something better to offer than the rental down the road.
Do some homework, be a prospective tenant & see whats on offer, go have a look. Find out from rental agents what tenants are looking for.
Also, recent news reports state first home buyers are being priced out of the market by the incredible price rises - the other option they have - to rent from you & me!
Most of all - be positive & do your homework.
KANGA
Pilot,
Whilst I don't deny that there are a growing number of new landlords I also feel that it is partly the time of the year.
Speaking to pms recently I hear that traditionally this is the high vacancy season between now and christmas. I believe that in Feb there will be nothing available and the wise landlord times his leases to fall due at this time.
cheers
Whilst I don't deny that there are a growing number of new landlords I also feel that it is partly the time of the year.
Speaking to pms recently I hear that traditionally this is the high vacancy season between now and christmas. I believe that in Feb there will be nothing available and the wise landlord times his leases to fall due at this time.
cheers
We had a tenant move out on Sunday, the new one was already in the wings waiting to move in. Since we got our current agent managing this property, we've never had any problems letting it.
I honestly don't know how he does it - we had nightmares letting the property before we got this agent. Other properties in the area seem to have longer vacancies, but they also seem to be smaller with higher rents. I guess it's a combination of a good agent, a desirable house, decent location and the right price.
We had another property vacant about this time last year which we had some trouble letting. In the end we deliberatly gave them a 5 month lease with the option to renew (same rent) for another 12. The next time it is vacant will be in early Feb, when Melbourne Uni (3km away) is doing there intake. Tenants also like the idea of a short lease so they can move if they don't like the house.
I honestly don't know how he does it - we had nightmares letting the property before we got this agent. Other properties in the area seem to have longer vacancies, but they also seem to be smaller with higher rents. I guess it's a combination of a good agent, a desirable house, decent location and the right price.
We had another property vacant about this time last year which we had some trouble letting. In the end we deliberatly gave them a 5 month lease with the option to renew (same rent) for another 12. The next time it is vacant will be in early Feb, when Melbourne Uni (3km away) is doing there intake. Tenants also like the idea of a short lease so they can move if they don't like the house.
Hi Pilot,
It may be time for you to be a contrarion....maybe you could approach all 3 owners and offer to rent their properties at the asking rent....fixed for 5 years!
Then, fill each property with furniture from the papers and rent them fully furnished...by the room or by the house, whatever it takes.
The pendulum will swing.
Glenn
It may be time for you to be a contrarion....maybe you could approach all 3 owners and offer to rent their properties at the asking rent....fixed for 5 years!
Then, fill each property with furniture from the papers and rent them fully furnished...by the room or by the house, whatever it takes.
The pendulum will swing.
Glenn
be happy we are not in SF USA
http://www.craigslist.org/about/housing.trends.html
in the last 2.5 years, the number of available rentals in SF has gone up 500%
http://www.craigslist.org/about/housing.trends.html
in the last 2.5 years, the number of available rentals in SF has gone up 500%
Two ways to look at this:
For the barflies who are dipping into property without fully understanding the risk profile:
When the market goes bad at least you'll have something in common with everyone else to agonise over.
For the serious investors who are committing to a wealth strategy:
A rollercoaster has to have as many downs as it does ups...Commit to the strategy & hold on for the ride (no screaming up the back please, this must be an emotionless decision).
Cheers,
Aceyducey
Yes, my wife and I have given up on Aus at the moment. We are trying to sell our land in Daylesford to get some cash for an additional couple of IP's in NZ.
We own a South Melbourne apartment for over a year now and I am sure if we wanted to sell it we would get a lot less than what we paid for it. Thank god its tenanted !
Thats our mistake it not understanding the market but boy have we learn't fast !
We will look at Aus again maybe in a couple of years....
Best Regards
Marc
We own a South Melbourne apartment for over a year now and I am sure if we wanted to sell it we would get a lot less than what we paid for it. Thank god its tenanted !
Thats our mistake it not understanding the market but boy have we learn't fast !
We will look at Aus again maybe in a couple of years....
Best Regards
Marc
Hi Pilot,
If you're worried about the glut of rentals, why not just find out which areas dont have (as) many rentals?
This leads to 2 things in my opinion:
1) Better capital growth since the PPOR owners in the area over capitalise on their homes, boosting the value of the suburb
2) When the amature investors come in herds, they'll boost the value of the suburb
Please stay away from Perth tho
-Food for thought
Dave
If you're worried about the glut of rentals, why not just find out which areas dont have (as) many rentals?
This leads to 2 things in my opinion:
1) Better capital growth since the PPOR owners in the area over capitalise on their homes, boosting the value of the suburb
2) When the amature investors come in herds, they'll boost the value of the suburb
Please stay away from Perth tho
-Food for thought
Dave
Yep, glut of rental properties here too, or so it appears.
I kept newspaper cuttings of listed rentals in Wynnum, Manly, Lota area last year and this year.
The number of vacancies is up from 45 to 70 for this time last year.
I certainly noticed that in almost all cases when a sold sign was slapped on a house for sale, it immediately had a For Rent board out.
It's mad!
Desto.
I kept newspaper cuttings of listed rentals in Wynnum, Manly, Lota area last year and this year.
The number of vacancies is up from 45 to 70 for this time last year.
I certainly noticed that in almost all cases when a sold sign was slapped on a house for sale, it immediately had a For Rent board out.
It's mad!
Desto.
Hi Pilot
Jan compiled a book called "Building wealth Story by Story" or something like that. When I read that book I was just starting to get serious about investing in realestate. I found it very inspiring and it helped me understand that there is more than one way to make property work for me.
It is like most things in life "what ever you practice you get better at".
Kind regards
Simon
Jan compiled a book called "Building wealth Story by Story" or something like that. When I read that book I was just starting to get serious about investing in realestate. I found it very inspiring and it helped me understand that there is more than one way to make property work for me.
It is like most things in life "what ever you practice you get better at".
Kind regards
Simon
