Rentals on the increase?

[Michael_X]

According to Nathan rentals are increasing and will increase around $50-60 per week in metro Sydney over the next 12-24 months.

http://www.youtube.com/watch?v=8RiH7OsHC2Q

Anyone else noticed rentals increasing?

 

[nhg]

Not yet,

I had a chat with some renters yesterday and I was really surprised how low their rents were vs what I knew the houses in those particular areas cost.

I was expecting to see a growth shortly and, well there you have it.

 

[Salvatore1]

ROI has not caught up with the higher selling prices being experienced in Sydney. In my area rents have not increased more than inflation over the past 12 months. More and more people have selected to buy rather than rent due to cheaper interest rates. The availablity of rental properties has increased therefore rents are staying down.

 

[mumbai]

^ that.
There is a huge disparity between properties that have been bought quite recently versus that have bought a while ago. Those properties can easily sustain the low rentals and it will take a while to catch up.
I have not seen much increase, personally.

 

[Spades]

Dreamin',Imo the economy,loss of jobs etc is painting a better picture.

Stagnation ahead,

Cheers Spades.

 

[TMNT]

Dreamin',Imo the economy,loss of jobs etc is painting a better picture.

Stagnation ahead,

Cheers Spades.

agree, economy is not booming, more chance of it going backwards then fwds.

mining is dying, retail is supposedly increasing slowly, everything else is just crusing along

Unemployment is a bit high and rising slowly

 

[Sez]

Certainly haven't seen any significant increase in my area, fairly stagnant as others have said. I agree with TMNT and Spades I'm afraid. While the economy isn't dead it doesn't look set to take off any time soon. I have tenants appearing on my arrears list that were never there before because people are struggling.

Salvatore1 has a good point too - a lot of my best tenants are now buying with the low interest rates so they're not renting any more!

I've had to reduce rents to get tenants recently .

 

[Spades]

Certainly haven't seen any significant increase in my area, fairly stagnant as others have said. I agree with TMNT and Spades I'm afraid. While the economy isn't dead it doesn't look set to take off any time soon. I have tenants appearing on my arrears list that were never there before because people are struggling.

Salvatore1 has a good point too - a lot of my best tenants are now buying with the low interest rates so they're not renting any more!

I've had to reduce rents to get tenants recently .

Hi Sez,

Well said,

I've also reduced rent to attract tenants.Come spring i'm selling.

Antidotes of anarkie has me worried,SERIOUSLY.

Look at the garden we ;ive in

Cheers Spades.

 

[lost nomad]

Redfern rentals

8 weeks ago I saw a line approx. 40 people long to view a studio on a back lane in Redfern.

Last weekend, an agent told me the last month has been tougher than she has seen it.

She is trying to lease a 1 bedroom unit in a block on the same level / same aspect / size etc that she got $500pw for a month ago. No bites on this unit at $450

 

[chilliblue]

Our suburb is a high ownership area and whilst sales are booming rentals are going backwards with homes empty for several weeks before being tenanted and rentals slowly going backwards.

 

[MichaelGilbert]

According to SQM the vacancy rate for a house I have in the Central Coast NSW is at .7% (and has been similar for a couple of years) but still I have also found the last tenants I actually had to reduce my rent (from what the previous tenants where paying for 1.5 years) to attract good tenants.

Perhaps these good tenants are buying all the houses!

 

[Benvolio]

cant see rents going up in the heavily investor purchased areas like western sydney for at least 12 - 18 months

 

[D.T.]

According to Nathan rentals are increasing and will increase around $50-60 per week in metro Sydney over the next 12-24 months.

http://www.youtube.com/watch?v=8RiH7OsHC2Q

Anyone else noticed rentals increasing?

If I was a betting man, I'd put more chips on a $50-60 per week decrease than an increase in some parts of Sydney.

 

[TMNT]

When investors start flooding the area, as a general rule, prices goes up to due to demand, rents stay the same, stagnant or fall due to an over supply and constant demand, then the property prices start slowing down because teh investors buying for yield start dropping off

same thing with many areas of brisbane, especially the cheaper end

 

[zimby]

When investors start flooding the area, as a general rule, prices goes up to due to demand, rents stay the same, stagnant or fall due to an over supply and constant demand, then the property prices start slowing down because teh investors buying for yield start dropping off

same thing with many areas of brisbane, especially the cheaper end

Totally Agree, being both a Renter and landlord I feel this from both ends

 

[datto]

Totally Agree, being both a Renter and landlord I feel this from both ends

Geez I really feel for ya......copping it from both ends ...

 

[BayView]

According to Nathan rentals are increasing and will increase around $50-60 per week in metro Sydney over the next 12-24 months.

http://www.youtube.com/watch?v=8RiH7OsHC2Q

Anyone else noticed rentals increasing?

For rents to increase, wages have to increase.

As far as I can see; at best the economy on the job/wages front over the last couple of years has been flat.

The media and Gubb will crow about the economy - but they like to talk in terms of total economy - mining being the major breadwinner.

Meanwhile, construction, retail (in stores), manufacturing, and others are doing zippidy.

Don't kid yourselves; the economy on the domestic front is not that flash.

 

[r3ckless]

Seems like the media is wishful thinking and the reality is its hard to get top dollar in rent.

I have a unit in marrickville. Pp was $610k in sep 2013 with $560/wk rent. Had a val done a month ago. $660k and est. Rent is $580/wk.... I am thinking if the tenants are to sign another 12months i do$580/week but if its 24 months i will do $570/week

Opinions?

 

[DaveM]

When investors start flooding the area, as a general rule, prices goes up to due to demand, rents stay the same, stagnant or fall due to an over supply and constant demand, then the property prices start slowing down because teh investors buying for yield start dropping off

Very much so in a number of western sydney suburbs, investors flood in on the back of strong returns, create an over supply which leads to increased vacancy rates and a dropping of rental yield as rents drop to get a tenant.

I see properties and suburbs that 2-3 years ago would have had a line down the street now having properties sit around for weeks waiting to be let.

Western sydney is in this part of the cycle, prices are still rising, the question is when it will stop and prices will slow down.

 

[nhg]

Western sydney is in this part of the cycle, prices are still rising, the question is when it will stop and prices will slow down.

I want too much. Loving the equity growth, would love it if the rents stayed as high.

Dropped rents on one place, gave a little something something to the tenants of the others keep the others at the same price.