Sydney investors- whats what with the rental mar

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From: Colin Mills


One of my tenants is moving out next month. The property manager is advising against increasing the rent. His take is that the rental market has only improved slightly since last year. He advises the rent be left as is.
I live in Brisbane so was wondering if anybody else out there happens to own a property on the North Shore? This place is in Kirribilli with views up to your armpits. Older style but fully renovated. What is your managing agent saying right now? Has anybody increased their rents in the last couple of months?
To put you in the picture the rent was $550 around the time of the Olympics and is now let at $440. That particular place is unmortgaged so I'm not going to go hungry if it stays empty for a while in order to get a few extra bucks.
I'm all ears..................
 
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Reply: 1
From: Robert Forward


Hi Colin

Your property manager is right. The achievable rents in Sydney have come right back. Part of the reason is the FHOG and losing renters to the owner occupier group.

There is also a glut of rentals on the market too, so much so that owners have to do a reno on them just to be able to rent them out. I was on the market for a house to rent and checked out quite a few and the agents were asking us to put in an offer on the rental price.

So I still haven't moved as yet cause I've not found a house I want to move to. But where is your house located? And would you consider a lease option on it?

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2
From: Andrew Firmage


Hi Collin,

We've got a 1 bdr unit in Wollstonecraft with tenants moving out in about 6 weeks. We rented it over the last 12 months for $350 but I've been following the rent prices around that area for a couple of months now and they don't look good. We may have to drop to ~$330 to get a new tenant! We manage it ourselves so I don't have any opinions from property managers. Although, we will probably get one to find/screen tenants for us.

I think we'll end up hiring some furniture/plants (for balcony), putting up pictures, etc. to make the place look really nice for tenants. On that point, what are people's opinions on showing units for rent? Do you show it bare or put stuff in it (bed, couch, tv, pictures, tables, bookshelves, etc.) to make it look lived in?

thanks,

Andrew
 
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Reply: 2.1
From: Jenny Nowakowski


There was an article in the Sun Herald on Sunday about this. People with units in the city/Bondi etc had to furnish them with a $10,000 furniture package (tax deductible) in order to get them rented. Instead of hoping for $450 per week rent and not getting it for an unfurnished apartment they furnished it with new furniture and rented it no problems for $600-650 per week.

Jenny
 
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Reply: 2.1.1
From: Tom Moschitz


The current edition of Australia Property Investor has a good article on the subject of furnishing rentals properties. For various reasons the author generally recommends against it.
 
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Reply: 2.1.1.1
From: Steve B


I've got a brand new 2BR unit with
air conditioning in Merrylands Sydney. It's been vacant for four weeks.
The rent has gone from $260.00 down to $240.00 and still no enquiries.
Steve B.
 
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