People rent because they rent, with some planning to buy at a future date but many with no plan at all. The increase in rental vacancies simply tells me people are unable to afford the luxury of having a home to themselves are probably moving back to mom and dad's or in with other people in a share arrangement.
It's the big flaw in the property investors forward planning, no consideration for the realty of owning an investment people can no longer afford. People who own commercial property know this now, they have had a rude awakening. Residential is simply the next shoe to drop.
Shows how little you and others understand the present market.
The increase in rentals is due to an increase in supply of new rentals to the market. As rents increased rapidly in Perth in recent years investors moved in and we had a surge in new construction. This was to supply a tight rental market. As new supply has completed this as eased the supply of rentals and seen a easing of rental price growth which was running at over 20% per year.
The largest increase in the rental market for vacancies is occurring in the inner city due to a slowdown in mining investment, no as many high paid contract workers requiring leases. This is where the rental price is falling.
So far I have seen no indications this is occurring other then those few inner city locations, the suburbs are the same as they have been in recent years. Not much stock to pick from to rent.
Good time to secure a long lease in the city though for much cheaper prices if that is your thing.
Property sales did slow down in April/May to be below last years trend for the same time. Since June sales levels have been consistently higher then last year and stock has begun to fall again in the market due to stronger sales even in the wet weather.
First home buyer levels are at close to all time peaks of last year in May/June with June recording the highest ever median price for FHB at $470,700. Strong FHB demand normally leads strong activity in the upgrader market by 3 months or so. So expect to see strong sales in the $600-800k price band in spring/summer. You will see another uptick in prices in the 2nd half of 2014.
After this I expect to see flat growth for some time until economic growth and wages growth improve in the coming years.
Too bad for all those investors who bought when rents were high and they thought they were going higher and higher. But no, lower and lower they go, where they stop, nobody knows.
The titanic is sinking, who will ride it to the bottom, wherever that is......
Investors will be jumping ship now, why wouldn't they ?
while the rental market has remained steady at $450 a week.
Did you read the OP?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
So far I have seen no indications this is occurring other then those few inner city locations, the suburbs are the same as they have been in recent years. Not much stock to pick from to rent.
You are kidding right?
I have just rented in an outlying suburb. I got a good reduction on the advertised rent and I was able to reserve it 3 weeks prior to moving in for no holding rent (just a $50 deposit). You couldn't do that a year ago.
I am looking at one suburbs vacancies and they have ticked up from 67 to 84 in three weeks.
There was an increase in FHB activity to beat the stamp duty deadline of July 1st.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
And where abouts would this be ? Or did you just make it up ?
Of course you did , when we know the opposite is true, dear oh dear oh dear.
In Ellenbrook... lol.
Mike
7 Aug 2014, 11:43 AM
Shows how little you and others understand the present market.
The increase in rentals is due to an increase in supply of new rentals to the market. As rents increased rapidly in Perth in recent years investors moved in and we had a surge in new construction. This was to supply a tight rental market. As new supply has completed this as eased the supply of rentals and seen a easing of rental price growth which was running at over 20% per year.
The largest increase in the rental market for vacancies is occurring in the inner city due to a slowdown in mining investment, no as many high paid contract workers requiring leases. This is where the rental price is falling.
So far I have seen no indications this is occurring other then those few inner city locations, the suburbs are the same as they have been in recent years. Not much stock to pick from to rent.
Good time to secure a long lease in the city though for much cheaper prices if that is your thing.
Property sales did slow down in April/May to be below last years trend for the same time. Since June sales levels have been consistently higher then last year and stock has begun to fall again in the market due to stronger sales even in the wet weather.
First home buyer levels are at close to all time peaks of last year in May/June with June recording the highest ever median price for FHB at $470,700. Strong FHB demand normally leads strong activity in the upgrader market by 3 months or so. So expect to see strong sales in the $600-800k price band in spring/summer. You will see another uptick in prices in the 2nd half of 2014.
After this I expect to see flat growth for some time until economic growth and wages growth improve in the coming years.
People rent because they rent, with some planning to buy at a future date but many with no plan at all. The increase in rental vacancies simply tells me people are unable to afford the luxury of having a home to themselves are probably moving back to mom and dad's or in with other people in a share arrangement.
It's the big flaw in the property investors forward planning, no consideration for the realty of owning an investment people can no longer afford. People who own commercial property know this now, they have had a rude awakening. Residential is simply the next shoe to drop.
Truly stupid ..you have no idea...
Keep staying in the bush hey.
nelson
7 Aug 2014, 09:49 AM
Perth rents nosedive.
Too bad for all those investors who bought when rents were high and they thought they were going higher and higher. But no, lower and lower they go, where they stop, nobody knows.
The titanic is sinking, who will ride it to the bottom, wherever that is......
Investors will be jumping ship now, why wouldn't they ?
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Shows how little you and others understand the present market.
The increase in rentals is due to an increase in supply of new rentals to the market. As rents increased rapidly in Perth in recent years investors moved in and we had a surge in new construction. This was to supply a tight rental market. As new supply has completed this as eased the supply of rentals and seen a easing of rental price growth which was running at over 20% per year.
The largest increase in the rental market for vacancies is occurring in the inner city due to a slowdown in mining investment, no as many high paid contract workers requiring leases. This is where the rental price is falling.
So far I have seen no indications this is occurring other then those few inner city locations, the suburbs are the same as they have been in recent years. Not much stock to pick from to rent.
Good time to secure a long lease in the city though for much cheaper prices if that is your thing.
Property sales did slow down in April/May to be below last years trend for the same time. Since June sales levels have been consistently higher then last year and stock has begun to fall again in the market due to stronger sales even in the wet weather.
First home buyer levels are at close to all time peaks of last year in May/June with June recording the highest ever median price for FHB at $470,700. Strong FHB demand normally leads strong activity in the upgrader market by 3 months or so. So expect to see strong sales in the $600-800k price band in spring/summer. You will see another uptick in prices in the 2nd half of 2014.
After this I expect to see flat growth for some time until economic growth and wages growth improve in the coming years.
Not if the fhb are buying new. Also not true if those selling are taking shelter in rented. Do you have the breakdown?
I think the main reasons rental vacancy rates are increasing can be seen in places like Baldivis and Aubin Grove. Shit loads of new houses and units being built on small blocks. Many of these are cheaper to buy than paying rent to a property "investor".
They are close to the train line so a city commute is easy.
Also, we don't have the influx of replacement renters that we had during the mining investment boom.
I think a few Perth investors will soon discover that the old "property generates income" rule has a condition attached. Property generates an income IF you can find someone to rent from you.
Edit. There is a group of rental properties that I have been watching for two months now. One has just reduced by $10 a week for the fifth week in a row. It started at $450 back in late June and is now down to $400. Two years ago they would have had people fighting with each other to rent this place.
Those who are in for keeps long term have decent cash flow & are able to buffer the decrease of some rents will NOT struggle.
So far all have renewed.. The rents not dropped ...(same as last yr,) but I'm not increasing anything of course ATM with the current & future renewals.
Not too many FIFo renting my props at present.... Different in the past..
ATM some landlords will need to decrease rental rate if there's no takers, it's slow but not dead.... It's a rule that hasn't changed in the not so good times.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
To be fair I think he's talking about house prices. But by flat growth, in Mike speak that means a decrease. Red hot spring means flat. I don't think we've been able to establish mike's term for house prices going up in any meaningful way.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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