Govt Grant and Decrease in Renters

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From: Lan Diep


I am concerned about the govt grant to new home buyers. Will this have an adverse effect on the number of people renting properties? Will this mean that vacancy rates will increase for lower priced properties, due to the fact that the people who use to rent can now afford to buy?

Also, when the govt stops the grant, will property prices crash, because demand has ceased?
 
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Reply: 1
From: Robert Forward


Vacancy rates have already gone up in the Sydney metro. An article in my local rag (The St George Sutherland Leader) which is run by Domain.com.au has stated that it's a "fact" that rental prices are now dropping as vacancy rates are rising.

Below is a copy of the article that was in the paper.

Cheers
Robert



Property managers across Sydney have observed a substantial rise in vacancy rates coinciding with a jump in property sales, particularly for first-home buyers.

The president of the REINSW put the vacancy rise issue to the success of the NSW and Federal government first-home owner incentives.

"With so many people choosing to make the transition from renting to home ownership at the beginning of this year, a substantial number of rental properties are now being vacated," Mr Fitzpatrick said.

"The great news for prospective tenants is that now is an excellent time to upgrade to a very good tenancy agreement."

Mr Fitzpatrick said that with property investors keen to ensure their valuable assets continue to provide a good return during this dynamic time, tenant could find great rental deals even in sought after areas such as the eastern suburbs, inner west and city beaches.

"There are also a lot of rental opportunities to be found in the Sydney's greater western region with many western Sydneysiders buying both new and established properties this year," he said

People in there 40s and baby boomers, who did not think home ownership was possible, were also taking advantage of the government grants.

At the beginning of June 28 621 people had received a total of $270 326 268 through the first-home owner grant scheme that provided $7000 to eligible recipients.
 
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Reply: 1.1
From: Robert Longmore


in my opinion, Yes and Yes!
 
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Reply: 2
From: Mr S


People have been renting for 9000 years.

I wouldnt panic just yet.

Cheers - Martin
 
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Reply: 2.1.1
From: Rasputin .


Adam built the first IP and rented it out to Cain and Able !!
 
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Reply: 2.1.1.1
From: Scott Marshall


I hear the English are paying good price for beef, perhaps a land purchase, then buy your tenants?
 
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