Rents on the rise

Sorry, just updated it for Melbourne.. have a look at Perth too..

I'm just commenting that the news article is old news.. Yes rents exploded over the past year or so, but I don't think they'll continue to rise by much imo.
 
Simply looking at my current rentals and based on market rates today, I have a ~5% gap. Most of my rents were adjusted early to middle this year.

Why is it if property prices have increased and in some ares exploded (at least in Melbourne), and we know its more expensive to own than rent, then there is no reason why rents couldn't continue to increase strongly given strong demand factors at play.
 
...there is no reason why rents couldn't continue to increase strongly given strong demand factors at play.
Are the demand factors still strong? I know we see it in the media all the time "record levels of immigration" etc, but the vacancy rates are shown to be increasing.. I can only comment re Melbourne from the said graph, but in Brisbane I've noticed that a year ago (for my ips) vacancy rates were 0% with non stop enquiries, it's still 0% vacancy but the enquiries have definitely dried up.. I think renters taking up the FHOG has played a part. Also gen y's changing their accom/spending habits.
 
Are the demand factors still strong?
Yep, from the rents that are being achieved, by my conversations with REA and PM's and by going to see rental OFI's. Of course I am not talking Bundaberg. My experience is inner Melbourne suburbs, predominantly on the east, south east.

I don't froth at the mouth high level aggregated numbers to be honest. I tend to believe what I see on the ground. :)
 
Yep, from the rents that are being achieved, by my conversations with REA and PM's and by going to see rental OFI's. Of course I am not talking Bundaberg. My experience is inner Melbourne suburbs, predominantly on the east, south east.
Ok, onwards and upwards in Melbourne :)

I don't froth at the mouth high level aggregated numbers to be honest. I tend to believe what I see on the ground. :)
Me too :)
 
I was doing some prognostication this morning and figured if i can bump my rents by 10% per year they will be going up $30k+ pa. Thats a nice payrise each year :)
 
I was doing some prognostication this morning and figured if i can bump my rents by 10% per year they will be going up $30k+ pa. Thats a nice payrise each year :)

and if interest rates go up by 1.5% you will be short by $30K pa.....
I actually feel for you brother,
it will be painful for me as well...:eek:
 
Last edited:
I did a quick check in my area to compare rents to my existing properties.

1 Bedders. NONE at all available. Good news for me
4 Bedders 3 Available all further away from CBD. Good for me
2 Bedders None available in CBD. Good for me

Cant comment on rent rises but the above tells me they aint going down anytime soon.
 
Yep, they are going good :)

Interest rate rises, they are of a consideration, but like always you need plans in place to combat these. Dont think they will be of a massive concern seeing the dire rental market out there.

There is a lot of opinons about the demand, but when pounding the pavement you see the real shortage there.

I think inflation will be our friend as I have said for a couple of years.

I have now taken an apporach where rents will automatically be risen to a set schedule and will not feel sorry or do them adhoc, one gets a letter they all will, just the same as you do when rates get risen from the bank.

The schedule is a losse one to consider markt sentiment but over an annual basis with targets in play.

Each 10% increase is like an average wage per anumn. :)
 
I was doing some prognostication this morning and figured if i can bump my rents by 10% per year they will be going up $30k+ pa. Thats a nice payrise each year :)

nice one nathan!

obviously u must have an impressive portfolio - i would appreciate it if you could give some tips as i am having difficulty growing my portfolio

what is your strategy?

Do you keep your portfolio under 80% LVR to avoid LMI?

Where do you look for properties that are cashflow positive (inner city, country, outer suburbs)? (there are quite a few around now but when rates work themselves back to 7% - many will become cash flow negative...)

my portfolio is negatively geared atm - because of this i am finding it hard to grow my portfolio - i have 4 IPs atm, 83% LVR, 1.59 million portfolio, cashflow is -$25000 / annum - unfortunately 2 of my IPS are locked at 9% which is hurting my portfolio badly - any tips to get my portfolio cashflow positive??
 
my portfolio is negatively geared atm - because of this i am finding it hard to grow my portfolio - i have 4 IPs atm, 83% LVR, 1.59 million portfolio, cashflow is -$25000 / annum - unfortunately 2 of my IPS are locked at 9% which is hurting my portfolio badly - any tips to get my portfolio cashflow positive??

Yep, it sucks when that happens. :(

Only way to get your stuff a bit more +ve is:
Reduce expenses:
1. Consider refinancing out of those 9% rates (may not be possible if large break costs mean you are 2 years to get back to where you are now)
2. Maybe self manage to save PM fees (but I'm not a fan of this)
Increase income:
1. Increase the rents or optimise them if you are not already doing so
2. If the properties are suitable for doing so:
(a) Rent by the room
(b) Build a granny flat in the back yard
(c) Add a 4th bedroom
(d) Do a cosmetic reno to improve rental yield
 
Yep, they are going good :)

That's very impressive! :eek:

Just curious, what's your net cashflow position after PM fees/strata fees/maintenance/rates/insurances etc... and current interest payments?

And what proportion of your loans are fixed?

Thanks.
 
Top