Thanks for your great comments. I have decided to purchase a property before the prices escalate. I have been to several auctions over the past few weeks and it appears that all of the agents are saying the same things that you have already indicated. I think that I will need to act sooner, rather than later or prices wiull be out of my reach. Is anybody able to advise what the rental situation is in North Melbourne?
Hi Invest 1,
The best time of the year to be renting out properties in inner Melbourne is the peak rental season which falls between late January and March. Naturally it is still possible to rent properties in inner Melbourne at other times of the year, you just may need to wait longer for a suitable tenant. (Perhaps up to 6 wks). Keep in mind too that many renters have become first home buyers and have left the rental market to move into their nearly acquired homes.
As for approximate rental prices - I can give you a very rough guide:
1) 2 bedroom flats with car parking - range from $330 - $380 per week, depending on condition, location and demand for these properties.
2) 2 bedroom terrace houses rent for between $380-$420 - again depending on condition, size, location, carparking and demand.
3) Town Houses range from around $400 upwards. Again depending on quality, size, parking facilities, location etc.
I am not sure what the exact rental vacancy rate is for Nth Melb at the moment. Some reputable agents who service the area include Woodards in Carlton North and Nelson Alexander, also in Carlton North. I try to have the lease for my IP's in North Melbourne expire around January or early February. That way I find it easier to negotiate rental increases, and also ensure that I have a tenant throughout the 'leaner' months of the year.
I would not allow a local agent in North Melbourne to manage my properties, although having said that, Simpsons (North Melbourne) are great to buy through as they often let properties go easily, sometimes significantly below market value. I would never sell through them though!
Regards Jason.