Rentals,Vacancy,Recessions

[beech]

Hi Guys,this is probably a question for those that have been investing in property from late 1980,s but not necessarily so.

Just wondering what happened to YIELDS & VACANCY RATES when the recession we had to have hit?

With people losing jobs,building construction low and no_one buying im assuming thats yields went up but would like to know for sure.

Looking forward and reading BIS schrapnels latest GUESSES started to wonder what actually took place in the past.

thanks

 

[Bill.L]

Hi Beech,

Back in the late 80's we were renting a house out to a relative at below market rates, but the average rent for a 3bd house was about $120 pw. This at a time when the property was worth $110k and interest rates 17%.

bye

 

[Lplate]

Yields went down. Main problem was long vacancies. In some areas yields only started to recover in the years leading up to the current boom.