rents in sydney

[Nathan]

Sydney = Crazy

Anyone noticed how crazy some of the rents are out west here?

Like im looking @ mt druitt at the moment and units are on for $275 pw, houses in houseo areas renting for $250pw+

Werrington is like $200 for unit or townhouses start @ $250 pw...

Where will they stop?

Quick observation....

Went to IGA for a drink the other day (i dont normally goto shops) but noticed tic tacs like $1.50, chewing gum $2, paddle pops $1.50.

Petrol is $1.60 for mid range type petrol.

Are we having a currency debasement? someone posted a richdad video the other week that shows this well its part 4 of the series.

(everything is doubling, comodities are rising, and people cannot afford to buy) Comodities are rising because of the sinking US dollar, and this will bring the rest of the world down with it.

Where will rents go?

Im going out with the balls and going to say, i think those rents that were out mt druitt way for $200 pw before we will see around $330pw+ in the not to distant future.

Why? Look at south west in same demographics, busby etc...

Rentals seem so scarce, all my pm's are saying that they got 0 rentals.

Crazy stuff....

With interest rates going up, and the new rents still aint even as good value as 2 years ago as an IP.

Michael posted a good post on reason why sydney is a great place to buy atm, due to lack of supply and demand + imigration etc.

This is going to be a great market place for those who want to make something of themselves.

I guess with saying this you go buy yourself little house that costs $100pw and rents rise $100pw it costs $0 to hold. (When rates fall it will be +cf in capital Sydney)

 

[kweh]

Rental prices are going through the roof in the Mt Druitt area. The problem is, all the sales in the last few months have been mortgage repossession and they have greatly brough the prices down. Now with the rising interest rate, all the landlords have no choice but to jack up the prices.

A four bedroom house in emerton (considered to be one of the cheapest suburbs in Sydney) is leasing for $300 pw and is likely to rise to $310 pw over the next few months.

 

[BV]

I suggest tenants sign long leases or be prepared for more increases.
I have only increased my rents by 6% this year and I am below market prices.
The norm would be 10%
Cheers

 

[kweh]

long leases won't help many tenants though, you are still able to raise the rent, but just need to give 60 days notice.

 

[landlubber]

IMO it's going to get a lot worse ( much higher rents) before it gets any better. The finance figures show investor activity as a % of new loans is at it's lowest for many years. The average "Mum & Dad'' who have been the backbone of the private rental market for "ever" just can't afford the negative cashflow for the "average" IP anymore. Combination of a) high prices b) high int. rates and c) lower tax rates. Lower tax rates are great but they make neg. gearing less attractive as an investment all the time.

Prices won't come down much, int. rates will come down on time, tax rates will get lower ...can ONLY mean rents have to rise LOTS !!!

That's the math !
LL

 

[skater]

Anyone noticed how crazy some of the rents are out west here?

Like im looking @ mt druitt at the moment and units are on for $275 pw, houses in houseo areas renting for $250pw+

Ain't it great.

 

[Nathan]

F*kn fantastic Skater

with talk of rates rising again today i hope to see them go higher...

this is a great great market here we have in front of us... as soon as rates go down, in sydney there will be positive cashflow properties.

 

[BV]

F*kn fantastic Skater

with talk of rates rising again today i hope to see them go higher...

this is a great great market here we have in front of us... as soon as rates go down, in sydney there will be positive cashflow properties.

Nathan mate
it's just talk, the banks have already increased rates well above the RBA's target and Mr. Stevens will have a hard time justifying another rise.
my 2c

 

[lizzie]

just put one of mine up $20/wk ... actually asked the pm to put them up $20-30 but i personally thought $30 was a bit on the high side for where it is ... not that $30 will come close to clawing back the $500/mth increase in mortgage payments on this property due to interest rate rises.

 

[skater]

I've got 3 that are due for another rise in 6 weeks.

 

[lizzie]

not that $30 will come close to clawing back the $500/mth increase in mortgage payments on this property due to interest rate rises.

p.s. yes - it was on fixed rate at 6.49% and just came off this month - up to 9.47%. choose not to refix at around 9% because i believe interest rates will come off the boil next year and we can hold in the meantime.

 

[JoannaK]

rents are crazy! i'm looking for a house to rent at the moment in the St George area and can't get anything half decent for less than $700 per week!! It's depressing me.

From a landlords point of view though, it's terrific!

 

[Cartoon]

Ain't it great.

Skater i thinks its great
Come july ill be loving my positive geared villa.

Honestly ppl dont like buying in good old mounty county but for the west is has an average 2 week rental turnaround which is why i decided to buy there.
Plus it was cheap for my first place

 

[asdf]

rents are crazy! i'm looking for a house to rent at the moment in the St George area and can't get anything half decent for less than $700 per week!! It's depressing me.

From a landlords point of view though, it's terrific!

Yeah tell me about it. On the northside, I'm looking at $1,000 a week. Landlords? Not over this way. I don't know many investors who can buy multiple $1M+ properties and keep it long term in their portfolios. They're all home owners and theres a good proportion of semi retired baby boomers with no mortgage who frankly should all move on and free up some of the spare bed rooms and garden space for the rest of us.

 

[Nathan]

Cartoon, goodwork, if you look hard enough you can find cf stuff out our neck of the woods. the way i see it, is rents r ganna rise $100pw in next 2 yrs or so
load up as much as you can that will cost out of pocket $100pw, and increase rents then u holding all ur properties for $0pw in australias biggest capital city, doesnt get any cooler then that does it?

 

[lizzie]

Where will they stop?

to get back to the question ... they will stop when it becomes cheaper to buy again.

caused by ... rent increasing, wages growth, interest rates drop ...

 

[MichaelW]

Yeah tell me about it. On the northside, I'm looking at $1,000 a week. Landlords? Not over this way. I don't know many investors who can buy multiple $1M+ properties and keep it long term in their portfolios.

Hi ASDF,

You just need to look a little further North and a bit further East! The rental appraisal 12 months ago on my MUH development was $830pw each. I genuinely believe these would now fetch easily above $900pw, which would make it CF+ if I sold one and paid down the debt on the remaining two with the proceeds. So, holding two worth around $870K each and CF+ on the Northern Beaches. Sounds like a nice outcome to me!

I just wish I could buy more at this stage in the cycle, but I'm happy enough with where I'm at. My Dad, bless him, was really concerned about the hit I took on the stock exchange recently so offered to lend me $30K if I needed it to help make ends meet. My wife, bless her too, said: "John, we don't need the money, we're absolutely fine. And if we did want to borrow that $30K it would be as a deposit on another IP" Dad said something like: "Oh, well that's what I'd expect from you guys". He loves what we're doing too...

just put one of mine up $20/wk ... actually asked the pm to put them up $20-30 but i personally thought $30 was a bit on the high side for where it is.

Hi Lizzie, and you probably know already that I just put the rent up on my Mona Vale IP by $100 per week. It was $550pw and is now $650pw. I said to Kay: "Give it six months and we'll put it up another $100pw", and I reckon we'll pull that off without any hassles too. $200pw increase off a $550pw base over a 6 month period. Certainly crazy days.

JoannaK, with your passive income, I reckon you can stretch to a nice top end rental without denting the P&L too much. If you wait 12-18 months I know of a really top end unit development in Mona Vale that I will reserve a tennancy on at fair market value for any in SS interested!

Cheers,
Michael

 

[Highlygeared]

Hi ASDF,

You just need to look a little further North and a bit further East! The rental appraisal 12 months ago on my MUH development was $830pw each. I genuinely believe these would now fetch easily above $900pw, which would make it CF+ if I sold one and paid down the debt on the remaining two with the proceeds. So, holding two worth around $870K each and CF+ on the Northern Beaches. Sounds like a nice outcome to me!

I just wish I could buy more at this stage in the cycle, but I'm happy enough with where I'm at. My Dad, bless him, was really concerned about the hit I took on the stock exchange recently so offered to lend me $30K if I needed it to help make ends meet. My wife, bless her too, said: "John, we don't need the money, we're absolutely fine. And if we did want to borrow that $30K it would be as a deposit on another IP" Dad said something like: "Oh, well that's what I'd expect from you guys". He loves what we're doing too...

Hi Lizzie, and you probably know already that I just put the rent up on my Mona Vale IP by $100 per week. It was $550pw and is now $650pw. I said to Kay: "Give it six months and we'll put it up another $100pw", and I reckon we'll pull that off without any hassles too. $200pw increase off a $550pw base over a 6 month period. Certainly crazy days.

JoannaK, with your passive income, I reckon you can stretch to a nice top end rental without denting the P&L too much. If you wait 12-18 months I know of a really top end unit development in Mona Vale that I will reserve a tennancy on at fair market value for any in SS interested!

Cheers,
Michael

Hi Michael

did it go up $100 with the existing tenant or $100 after they moved out? And $650 - what is it..a house?

 

[MichaelW]

Hi Michael

did it go up $100 with the existing tenant or $100 after they moved out? And $650 - what is it..a house?

Hi HighlyGeared,

It was with the existing tenant who is still there, and its a freestanding house at present. I intend to knock it down and build my DA approved three MUH development in a year or so.

Cheers,
Michael.

 

[GoAnna!]

Do people seriously think $250pw is a lot for rent?? Its seems like rents are way out of wack with real life.

We get that much for houses in Launceston and 1 bedroom apartment in Hobart. Actually I can now get $170 for an unrenovated bedsit is Hobart. That makes a places with more than two rooms anywhere in Sydney look quite cheap to me.