House prices may be flat but you can bet on rent rises
- Thread starter BV
- Start date
And also from the same article:
Based on what the CBA said today here http://au.finance.yahoo.com/news/CBA-warns-rate-pain-ahead-abc-1352228482.html and has been hinted at by the other big banks, we'll be sailing awfully close to that cliff edge this time next year.
Based on what the CBA said today here http://au.finance.yahoo.com/news/CBA-warns-rate-pain-ahead-abc-1352228482.html and has been hinted at by the other big banks, we'll be sailing awfully close to that cliff edge this time next year.
I doubt that interest rates will go much higher than 0.5%
because the economy has already slowed down and will slow down even more as higher rents and interest rates already started to bite.
People's spending power is reducing by the day and wages aren't going up as fast as they used to.
We also don't have stimulus money to spend like last time....
They'll be lined up at the Fair Pay Commission with their hands out for more wage rises to keep pace with the cost of living.
But eventually rates will drop. Loan repayments will drop and hang on. Rents stay up.....
But eventually rates will drop. Loan repayments will drop and hang on. Rents stay up.....
And that's the best part.
Hmmm.. I dunno where you guys are talking bout but my rent is on the way down!
For the first time in years I can't find a tenant (break lease so don't care much) but no interest at all after 4 weeks.
The property is well cared for.
Prices are stalling too for the first time in years so it's the worst REA market I've experienced yet. Will come good again though.
For the first time in years I can't find a tenant (break lease so don't care much) but no interest at all after 4 weeks.
The property is well cared for.
Prices are stalling too for the first time in years so it's the worst REA market I've experienced yet. Will come good again though.
We're both in NSW. Rents have been going up constantly for the last couple of years. I don't see that stopping yet, as there is a shortage of supply of stock.
If it helps, the last time we had a massive increase in sales prices, rents stalled & went backwards slightly. This was due to a heap of investors purchasing properties, which led to an oversupply.
Although I am unfamiliar with the Melbourne market, I would say that this is exactly what you are experiencing now. Drop your rates a little to get a tenant in there. Don't worry, it won't take long for things to get back to normal.
Yes. When you look at specific areas over a short period you may experience this. But in general over a longer term i think you will find what i said to be true.
Long term is the key.
Rents up
Hiya
I had a tenant in Campbelltown surrounds did a runner on me (he's going to forfeit his bond...)
Left the house in a MESS; left behind all his furniture (TV, cabinets, beds etc) some in good condition...
Left the house in a very dirty condition; urgggghhhh!
Anyway, someone from the corner actually offered to rent it from us (his landlord is selling and he can't get another place.) Rentals is very TIGHT in South West Sydney!
3 bedder standard house; old kitchen, old bathroom; i'm upping the rent from 335 to 360 and he wants it! Jeez; the rents are creeping up to meet another iP in the Paramatta surrounds!
Hiya
I had a tenant in Campbelltown surrounds did a runner on me (he's going to forfeit his bond...)
Left the house in a MESS; left behind all his furniture (TV, cabinets, beds etc) some in good condition...
Left the house in a very dirty condition; urgggghhhh!
Anyway, someone from the corner actually offered to rent it from us (his landlord is selling and he can't get another place.) Rentals is very TIGHT in South West Sydney!
3 bedder standard house; old kitchen, old bathroom; i'm upping the rent from 335 to 360 and he wants it! Jeez; the rents are creeping up to meet another iP in the Paramatta surrounds!
Rental tight in Melbourne
Hi Investor
See below link...
Yours must be a pretty unique property to buck the trend! Mind sharing where it is? Not in the Sunshine Coast is it?
http://theage.domain.com.au/real-estate-news/tenants-feel-the-squeeze-all-over-20101215-18y5s.html
Hi Investor
See below link...
Yours must be a pretty unique property to buck the trend! Mind sharing where it is? Not in the Sunshine Coast is it?
http://theage.domain.com.au/real-estate-news/tenants-feel-the-squeeze-all-over-20101215-18y5s.html
No this property is located in Darwin. Things will blow out next year though once Inpex begins construction because it's the largest single project to ever hit Australia and will bring an estimated $40 Billion to the Trerritory over the next 20 years, with an additional 5000 workers just for construction alone. So if you ask me, now is the time to buy in Darwin because prices have finally stagnated in most markets and will kick off earlier next year. Not many other markets can be so optimistic.
Plus, this tenant broke a lease which is due to expire half way through February 2011 so I'm not worried in the slightest.
I've since spoken with my property manager and he is keeping the same market rent.
Plus, this tenant broke a lease which is due to expire half way through February 2011 so I'm not worried in the slightest.
I've since spoken with my property manager and he is keeping the same market rent.
Here, here!
There's so many great opportunities out there at the moment, its just a shame I've got my millions tied up in my little development with no rent coming on off it yet. Once its done I'll be sitting pretty but I'm committed to it for now. Shame, I'd love to be out shopping elsewhere at the moment.
So many opportunities, so little unallocated borrowing capacity...
Cheers,
Michael
How can you be sure about this?
Remember you're talking about a market which has had 20% CG year after year after year....
If anything it could be time for a correction...
You could be absolutely right BV!
Or, you could be horribly wrong.
Your guess is as good as mine, but it's looking good. Take a look at Karratha.
Or, you could be horribly wrong.
Your guess is as good as mine, but it's looking good. Take a look at Karratha.
I've also got another $90 coming my way from my Sydney properties.
On Darwin, I just don't get it. Why is the median price there almost as high as Melbourne and Sydney? Never been there, but from Google Maps, it looks like you're in open country after driving west from the city for 15 mins.
On Darwin, I just don't get it. Why is the median price there almost as high as Melbourne and Sydney? Never been there, but from Google Maps, it looks like you're in open country after driving west from the city for 15 mins.
Just to keep it real - its good to remember that for most properties you need a 10% increase in rent, to negate a 0.5% decline in value.
So, for a 5% decline in value, one would need rents to double.
So, for a 5% decline in value, one would need rents to double.
