Rental property statistics.

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From: Jim Kouta


Hi all,

Over the last year, I have progressively taken a snapshot per week of how many rental properties between $200 - $300 are on the market with some interesting results. Melbourne, 13km out of city area(Eastern suburb). In November last year, there were 32 properties on the market. September this year, there are 96 properties on the market in the same price range! Has anybody else been taking statistics in other areas? With the amount of investment going on at the moment, one can only assume this figure will go up and rents go down.

Jimbo.

 

[WebBoard]

Reply: 1
From: Douglas K


gday jim

i have not gone to the same level of detail as you. i have been monitoring rental prices in an inner western sydney suburb (6 km from the city) for the last 9 months. to say the the bum has fallen from this market would be an understatement. i was going to offer my tenant a discount to stay in the unit once his lease expires next month. however with the demise of ansett, new york and the stockmarket falling 8% today. i feel that defensive moves will be on for a while. it will take about a month to kick in, but the flow through should strengthen the rental market. (well that's my theory)

cheers

dougie

as my grandpa used to say "speculate and accummulate, but only buy where you wanna die"

 

[Michael Yardney]

Reply: 2
From: Michael Yardney


Jim
There is little doubt that your assumptions are correct. We speak to agents daily and they tell us there is MUCH more rental stock available in Melbourne and there is less demand. This means properties are remaining vacant longer and rentals have fallen.
There are fewer tenants because low interest rates and the first home owners grants are allowing more people who would have rented in the past to buy.
There are more properties available for rent, in particular apartments, because the many seminars and courses have bread a whole new generation of investors who are out buying properties and putting them back on the rental market.
This does not mean we shouldn't invest. I think it means understand your market and do your sums realistically. And remember what happened in previous cycles. High vacancy rates usually happen at the end of a boom.
Michael Yardney
Metropole Properties