Vacancy Rates/Rentals Availalbe Indicatiors in Regional Towns

[Property Meister]

Was having a discussion and wanted a few other opinions,

when I look at a regional town with a fairly small population, lets say 2000-6000,

How do you analyse the rental trends? some areas have very little availalbe, while some have quite a lot avaialble,

Or do you simply refer to the SOM factor?

and in these cities, is capital growth linked into a higher proportion of the population being renters or occupiers,

they way I see it, if there is a lot of renters, it means that rentals are in demand=rent increase=investors flock=price rise,

however, you could interpret it the other way and say, very few renters means combined with very few rentals = tight vacancy, however, liquid/elastic prices,

when I see a regional suburb with very few rentals avaialble , I instantly assume that there is very little supply and demand for rentals, so your $300 per week property even though its worth $300 per week, may only rent for $200 per week if you get desperate

 

[boomtown]

Go there and attend opens and see who else shows up.

 

[Propertunity]

Go there and attend opens and see who else shows up.

They tend not to have Open for Rental Inspections in small towns

 

[Propertunity]

when I look at a regional town with a fairly small population, lets say 2000-6000, How do you analyse the rental trends?

It is very difficult - due mostly to the small numbers - statistically not very reliable.

and in these cities, is capital growth linked into a higher proportion of the population being renters or occupiers,

CG in regionals has more to do with either a mine opening up nearby or the 'ripple effect' from a large city nearby having a bit of a boom for whatever reason, than % of OO's Vs renters.

they way I see it, if there is a lot of renters, it means that rentals are in demand=rent increase=investors flock=price rise,

Investors do not "flock" to regionals with small populations.

Given the selling price of property in small regionals and the cost of a mortgage Vs what it costs to rent, you have to wonder about the quality of the tenants you would attract, when mortgage repayments are lower or equal to rent .

 

[boomtown]

They tend not to have Open for Rental Inspections in small towns

Ok fair enough not my gig

 

[Propertunity]

Ok fair enough not my gig

Nor mine.....thankfully

 

[Property Meister]

funny answers!

im a little unsure still,

regional or not, for Cg increase potential, is it better to have a higher proportion of population renting or occupying?

and for a smaller population, what does very few rentals indicate?