Yes, but selling two at 500k is better than selling NONE at a million.
That is the primary reason the RE industry talks up future growth prospects. They want people to buy now so they scare them into buying now by making the future unaffordable. This keeps turnover up.
If the market is going quiet, they scare sellers into believing that if they don't sell now, they risk not selling at all.
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.
Yes it is, but yet Louis , shadow, zaph and a few other funnies try to tell me it is 2.6%. And yet once again, as with every report we have seen over six months shows it has been around 4%. I hope that silly little red number dissapears soon. Not good for anybody louis......
You're the joke that keeps us laughing. The SQM graph in question has the vacancy rate at 2.6%, keep referring to it as nearly 4% just keeps making you look like a fool and keeps the whole forum laughing at you. Perhaps you should return to the Ford forum.
You're the joke that keeps us laughing. The SQM graph in question has the vacancy rate at 2.6%, keep referring to it as nearly 4% just keeps making you look like a fool and keeps the whole forum laughing at you. Perhaps you should return to the Ford forum.
I think what Mr Guest is saying is that although the SQM graph shows a vacancy rate of 2.6% he thinks it is way too low and should be closer to the REIWA figure of around 4%. Given that perception and the very poor formatting and presentation of the SQM chart I think it is easy to mistakenly think the blue vertical bars on the graph are the vacancy rate and read off a 4% value on the right axis. Don't be too hard. Anyone can make a mistake. And as I've stated in the other thread I don't think the absolute values of vacancy rate mean very much. It's the trend, up or down that is the only thing worth paying attention to.
More and more Perth rentals are being left vacant as the city's population growth falls and record low interest rates encourage tenants to become first homebuyers, the Real Estate Institute of Western Australia says.
REIWA figures show vacancy rates rose to 4.4 per cent in the first three months of this year, with more than 7,000 rentals on the market.
REIWA president David Airey said that was double what would be considered a normal rate for Perth.
"A big drop in Perth's population is one of the major contributors, as people have lost a lot of jobs in the resources, mining and associated industries," he said.
"They've left their rental accommodation and that has put a lot of stock back onto the market.
"There has also been a lot of new places being built in the suburbs and new apartments being built in the city that are coming into the investment market.
"We've ended up with a far greater supply and much reduced demand and we just haven't had the take-up yet."
Mr Airey said he expected vacancy rates to increase during the traditionally quiet winter months.
REIWA figures show the average weekly cost of renting in Perth has dropped $30 since March 2014 to $430.
Higher cost properties suffer biggest price drops
Mr Airey said the most expensive rental properties on the market had suffered the sharpest drop in rent.
"Around 80 percent of Perth's rentals are under $650 a week, while rents for the more expensive properties have dropped by 20 to 50 per cent in some cases," he said.
"But while rents have reduced, interest costs have been reduced as well and that does make up for some of the loss."
Mr Airey said the Reserve Bank's decision on Wednesday to cut interest rates to 2 per cent should entice even more people to buy their own homes.
"What we have seen particularly in the past few years is a lot of first homebuyers - young people who were renting - moving into their home," he said.
"That will continue for some time and certainly while interest rates remain low, that's going to encourage people to move into the property market."
REIWA said in the March 2015 quarter, there were about 2,000 more rental properties on the market than at the same time last year.
The cost of renting in Perth peaked at $475 in mid-2013, but has fallen 9.5 per cent since.
No relief for those on low incomes: WACOSS
Western Australian Council of Social Services chief executive Irina Cattalini said despite the overall drop in rental prices, there had been no reprieve for people who rent on low incomes.
"While we're seeing the average decline somewhat, it's because the expensive properties at the top end of the market are not collecting the same rent rates as they have in the past," she said.
"We've seen no improvement in the availability of affordable rental accommodation for people who live on fixed or low incomes.
"They're not yet benefiting from the easing that we're seeing across the averages. It's not providing any relief."
1. The mining industry slowdown has seen many tenants relocate back interstate or overseas due to loss of work contracts. 2. Decreasing IR have seen many tenants being able to buy their first home and leave the rental market.
Consideration needs to be done by Perth prop owners to understand the number of comparable rental that's available in this market. Owners will need to be realistic with their rental rates to secure their tenants. Make sure you keep an eye on PM being efficient to secure tenants to minimise the vacancy period, and work in the best interest of the prop owner. Communication is important.
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 $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
1. The mining industry slowdown has seen many tenants relocate back interstate or overseas due to loss of work contracts. 2. Decreasing IR have seen many tenants being able to buy their first home and leave the rental market.
Consideration needs to be done by Perth prop owners to understand the number of comparable rental that's available in this market. Owners will need to be realistic with their rental rates to secure their tenants. Make sure you keep an eye on PM being efficient to secure tenants to minimise the vacancy period, and work in the best interest of the prop owner. Communication is important.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ 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.
I think the Perth rental market is about to break.
My RE friend tells me he is selling a lot of cheap houses to investors. Much more than usual.
Lowering interest rates are encouraging investors to add to their portfolios. They don't seem to care that the rental market is slackening a bit. They can just present their property a bit better, charge a bit less, allow pets, offer the first week free and get the tenant.
This forces the rest to do the same and we end up with a deflationary spiral in the rental market?
If you have 10 properties in your portfolio and a 50 basis point cut in interest rates, you can finance an 11th property with the mortgage payment savings.
If a lot of people think the same way, you end up with a lot of new rental properties competing for a dwindling pool of renters.
I think we are seeing this right now.
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.
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.
I have expressed a point of view. I have used the words "I think" and placed ? marks at the end of some of my sentences.
But how would you explain 1229 properties being leased last week and a nett gain of 250 properties still available for rent? (numbers from the same source).
Does that seem like a normal market to you?
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.
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