I can see a trend developing:
- Thread starter Sunfish
- Start date
Yep, werrington, I *think* it's this one:
http://www.realestate.com.au/property-townhouse-nsw-werrington-404577048
http://www.myhome.com.au/rent/nsw/outer-west-nsw/werrington/townhouse/p000uc7z/
I have recently rented out two in this area with no troubles. My PM told me that she can't get enough stock. Is your IP a very nice one, meaning it is too expensive for the demographic, perhaps? Or maybe has unusual features (like the coin-op laundry of another poster) which makes it harder to lease?For instance, we had one with a Granny Flat. Renters were reluctant as there was no fence between the flat and the house. Put a fence in place and BAM! It was gone.
Another that I noticed (because it was similar to the above) was a house that was for lease with a flat. They wanted to lease them both to the same tenant and were asking over $500pw in an area that $300 for a house is expensive. This stayed on the market for some time. Eventually they decided to rent house and flat seperately. I believe they have been tenanted now.
That's the point init.
Priced right and places are walking out the door in Perth. I was a little over-zealous with my weekly rent, thinking the good times were upon us, I got nothing but smackies applying.
As soon as I dropped the price, I was inundated with quality tenants. Since then the rent has increased again to what I was asking originally.
Similar story for another, manager has just secured 12 month lease at 10% increase.
Having said that, the vacancy rate is the highest it's been since 2003, which incidently (or not) was the start of the last boom in WA
http://reiwa.com.au/research/listings-rental-trends.cfm
After having a quick look, I would say that it is a tad expensive @$330pw. There are only a four townhouses for rent in Werrington going by Realestate.com and there is one listed @ $300pw which includes a tennis court, swimming pool AND an ensuite. The other one @ $320 has a tennis court, swimming pool and BBQ. Given the choice, I know which one I'd choose.
If we go to Penrith, St Mary's or Cambridge Park there are plenty available for lower than $330pw.
Skater, I have a 3x1 next to the hospital rented out for $300 and it went quick - barely had time to finish the cosmetic touch up. This was in October though. The tenant was all too keen to renew the lease at the 6 month mark.
Do you find that the ones further from the hospital/UWS/station are generally harder to rent out?
Do you find that the ones further from the hospital/UWS/station are generally harder to rent out?
Not at all. In saying this, I have several in 2770 and they are a long way from the station (you need to drive to get to it). I'm nudging $300pw for some of them with no problems.
Not at all. In saying this, I have several in 2770 and they are a long way from the station (you need to drive to get to it). I'm nudging $300pw for some of them with no problems.
How do these ones tend to fare when it's not a "landlord's" market?
In a lot of areas there will be short term oversupply of rentals, we had a massive influx of first home buyers many who moved out of rental properties and they were replaced by a influx of investors who replaced them in market.
First home buyers have disappeared and r likely to be out of market a long time and hence the demand will build back up and eat all the supply. It is just a short term issue.
First home buyers have disappeared and r likely to be out of market a long time and hence the demand will build back up and eat all the supply. It is just a short term issue.
Great! The only issue was around the top of the last boom, approx 2003. For a short time we reduced rents, but were still able to fill them within a reasonable time.
Having said that, the vacancy rate is the highest it's been since 2003, which incidently (or not) was the start of the last boom in WA
http://reiwa.com.au/research/listings-rental-trends.cfm
according to university research, 100% of people that get cancer have eaten an orange in their lifetime.
it is this conclusion that has led leading scholars to believe that by eating an orange, you are guaranteed of getting cancer.
Well to give you another idea:
I counted the total number of rentals available in Australia on RE.com mid April and then at regular intervals since then and this is the result:
18-Apr 28-Apr 11-May 24-May
92583 92863 94237 95742
So a 3.4% increase in about a month. This sure doesn't reek of chronic housing shortage.
I've done a state by state, and interestingly Vic and NSW are the worst, both with increases of around 4.5%!
Hey, that's good research Whatever. kudos for thinking of it.
Presume you had to add all the state totals. A little monotonous, but do-able
Of course, it would be more robust if you had last year's results so you could account for seasonal variation, and then reduced it to per capita, to account for population growth.
Anyways, it doesn't support the argument of a housing shortage.
Maybe it has more to do with the number of people the ABS say are fully employed, who are only employed casually or part time.
I have just looked at the new features or RE.com.au and they have a new supply and demand graph, not a bad bit of data:
"The 'advertised properties' line graph indicates supply by showing the number of listings on realestate.com.au at any time during the relevant week.
The 'people looking' line graph indicates demand by showing the number of user sessions that included one or more looking at property details pages for properties listed in this suburb on realestate.com.au at any time during the relevant week.
Please note - This information is based on realestate.com.au data. The purpose is to give buyers and sellers an indication of supply and demand for properties in the suburb based on that data. It is not a definitive representation of market supply and demand."
Yes....a trend is certainly developing.
I can only comments in the markets which I own property:
NSW - very strong demand for property in most part of NSW in particular Sydney and Central coast. Most properties are letting within 2 weeks.
SA - stready....I have not vacancies there.
VIC- have had my Melton property vacant for about 3 weeks. Rental demand is not as strong...due to FHB getting in and less renters. But with demand from immgration and affordable rents increasing this should be short term.
Qld - this is where vacancy is a worry. The vacancy rates in areas like Deception Bay and Redcliffe is quite high. Again it is mostly due to the tenant pool drying up due to FHB getting their own places. I suspect it will change as rates go up and more people enter rental market due to population growth.
On a more positive note I see some buying opportunities as some investors quit some areas of Qld due to the current difficulties in renting their properties.
I can only comments in the markets which I own property:
NSW - very strong demand for property in most part of NSW in particular Sydney and Central coast. Most properties are letting within 2 weeks.
SA - stready....I have not vacancies there.
VIC- have had my Melton property vacant for about 3 weeks. Rental demand is not as strong...due to FHB getting in and less renters. But with demand from immgration and affordable rents increasing this should be short term.
Qld - this is where vacancy is a worry. The vacancy rates in areas like Deception Bay and Redcliffe is quite high. Again it is mostly due to the tenant pool drying up due to FHB getting their own places. I suspect it will change as rates go up and more people enter rental market due to population growth.
On a more positive note I see some buying opportunities as some investors quit some areas of Qld due to the current difficulties in renting their properties.
For instance, we had one with a Granny Flat. Renters were reluctant as there was no fence between the flat and the house. Put a fence in place and BAM! It was gone.
Another that I noticed (because it was similar to the above) was a house that was for lease with a flat. They wanted to lease them both to the same tenant and were asking over $500pw in an area that $300 for a house is expensive. This stayed on the market for some time. Eventually they decided to rent house and flat seperately. I believe they have been tenanted now.
Hi Skater
Its a very nicely renovated front house, $350 pw snapped up immediately, has a granny flat at rear which is now totally fenced off, separate entries, took about 4 weeks to rent this, however there was some work required. Had plenty of applicants for the granny/f but the most applicants were not suitable.
Cheers, MTR
my IP in Colyton (western sydney) is just a bog standard 3x1 fibro house.
I just upped the rent from $270 to $290... and even that is under market value.
I'll be upping it again to $310 later in the year when their 6 month lease expires.
According to my PM, and looking at other rentals in the area... i could probably even ask $320/wk today. But i like my tennants, so im happy to charge just under market rent to keep them happy enough.
I just upped the rent from $270 to $290... and even that is under market value.
I'll be upping it again to $310 later in the year when their 6 month lease expires.
According to my PM, and looking at other rentals in the area... i could probably even ask $320/wk today. But i like my tennants, so im happy to charge just under market rent to keep them happy enough.
the trouble is if everyone does this then that is the market. and tenants hate rich greedy landlords regardless of how woefully inadequate you set your level of return. what is it with resi investors that they are so keen to give away cash?
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