Rents go up as the stockmarket dives......

[natedog]

Hi all,

Just wanted to post some good news (for me anyway)

Even with the turbulent stockmarket dives and "whole world is going down the tube" thinking at the moment, we have just last week increased the rent on 2 properties by 13% ($30) and 25%!! ($80!!) per week respectively, couple this with the 1.25% drop in the cash rate recently, and our own little world looks just a little brighter

Anyone else seeing rents increase like this on thier own portfolios recently?

Cheers,
Nathan

 

[Nathan]

Nate,

Massive rental problems out there in cap cities for bread and butter residential props...

got some great increases happening and coming up happy days.

 

[Gee Cee]

I have a home 2 yrs old on lower south coast of NSW.

Just coming vacant.

Was $300 P/w.

Agent has listed @ $360 p/w.


With the variable interest rate cut this will push it to +ve cashflow.

Will se what happens ??

 

[Nathan]

Its good to see these positive figures and sense of the true market, instead of these negative goons i see with 0 property being gurus.

recent few increases from ones off leases

$200-250 (worth $300)
$130-210(flat)
$175-250
$200-240
$270-300
$215-240
$200-240
$215-280pw

some more coming avail in jan

 

[urchin]

i guess my response would be, what happens when the financial crisis bleeds into the real economy?

even if the measures implemented by the g7 stop the hemorrhaging a tremendous amount of damage has already been done. it will take a little while before it is felt directly but it cannot but impact the real business world. higher unemployment is definitely in the cards with some areas (like sydney) on track to suffer more than other areas. the global economic slowdown will also effect mining.

if i were heavily leveraged into property, i would not be cheering this downturn in stocks. it doesn't bode well for anyone.

 

[Aaron Sice]

who is selling in such large proportions? are hedge funds moving into gold? no? dropping commoditiies. oil? no, dropping. cash? inflation is killing it. so ..... what?

where is the money going?

 

[urchin]

who is selling in such large proportions? are hedge funds moving into gold? no? dropping commoditiies. oil? no, dropping. cash? inflation is killing it. so ..... what?

where is the money going?

so you think all that money is going to flow into property?

i understand the stock crash/property boom argument, but wouldn't that sort of be predicated on the idea that money had flowed from the property sector into shares in the first place? in aus, you are coming off a tremendous boom. to expect another boom on top of that is not reasonable. if for no other reason that if prices continued to go up another 7-10% annually from their current levels nobody would be able to afford to buy them. since a cash account gives you 6-7% that is what you would need to make property attractive.

 

[Dis]

where is the money going?

1) Its not money, its (leveraged) equity.

And its not going anywhere, its just being lost.

If they were ungeared they get cents in the dollar. If they were leveraged they may be zeo or -ve equity


2) Panic -> Customer redemption -> Forced sale.

The hedgefunds aren't moving into anything. They are scrambling to get teh cash to pay for redemption. Whatever cash the end user gets certainly seems to be going to cash / gold juding by record deposit rates and the godl price. Not to mention maying off current debts - cards, margin loans, etc.

 

[Aaron Sice]

so you think all that money is going to flow into property?

no! i wasn't even alluding to the statement. it's a genuine Q.

 

[Aaron Sice]

1) Its not money, its (leveraged) equity.

And its not going anywhere, its just being lost.

If they were ungeared they get cents in the dollar. If they were leveraged they may be zeo or -ve equity


2) Panic -> Customer redemption -> Forced sale.

The hedgefunds aren't moving into anything. They are scrambling to get teh cash to pay for redemption. Whatever cash the end user gets certainly seems to be going to cash / gold juding by record deposit rates and the godl price. Not to mention maying off current debts - cards, margin loans, etc.

so it's just a monetary supply v demand thing then?

but gold price is still falling....