Rents on the rise

[black dragon]

The RP Data numbers are rubbish, for NSW anyway..and I suspect other states. Remember they are based on a raw median of advertised rents.

Consider this from the Department of Housing in NSW, which, by the way, was released on the 16th of November and are based on bond lodgements. Why wasn't this in the media? FFS these are the official numbers!!!

http://www.housing.nsw.gov.au/About+Us/Rep...s/Latest+Issue/

During the September 2009 quarter, the median rent
for all dwellings increased by $5 to $395 in the Sydney
Statistical Division (SD). Within the Inner Ring the median
rent decreased by $10 to $460, remained unchanged in
the Middle Ring at $400, and increased by $10 to $340 in
the Outer Ring. Compared to the previous year, the median
rents increased by $15 in the Sydney SD, by $10 in the
Inner Ring, and by $20 in the Middle and the Outer Rings

In short, rents were up by 3.9% (LAST 12 MONTHS) for Sydney SD and just 2.2%(LAST 12 MONTHS) for the inner ring. For the quarter, the inner ring recorded a fall of 2.1%!!!!

Edit for my usual typos.

 

[craigb]

ahem!, front page of the Canberra times this morning , stated Griffith, a burb in canberra, rent has incresed by 41% this year,

 

[lizzie]

i was rather surprised last weekend when looking thru the property section of the local paper. i haven't given it a thorough read for a few months now as not in the market to buy atm, but was having a quiet day.

i know the rental situation is newcastle is tight atm, but didn't realise how tight until i got to the "to rent" section - and flicked the pages back and forth looking for the 3rd and 4th pages that used to be there ... but no ... only less than two pages of properties to available rent and one of those pages was made up to the big agent ads.

 

[Gools]

Sorry Lizie, where is 'local' for you?

 

[josko]

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??

Welcome seano,

I had the same problem with a NG portfolio a while back. How many years left on the fixed loans? With rising Interest Rates at least your payout figure should reduce.

Hi Gools, Lizzie refers to Newcastle.

I think the rental tightening depends on the area but as there is a supply shortage and considering new development in NSW has been stalled for sometime, it only seems probable that most areas are going to see increased rental demand.

Regards JO