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Michael Matusik: Rising Rents a Certainty; Music to my ears
Topic Started: 13 Apr 2012, 11:01 AM (5,618 Views)
Frank Castle
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Business As Usual

:D :tu: Wonderful news :tu: :D

Quote:
 
Rising rents a certainty
April 11, 2012 By Michael Matusik

We all know that the vacancy rate remains tight. But few realise just how tight it has become.
Of the 1,600 odd postcodes across Australia with rental properties in them, 475 or 30% have a vacancy rate under 1%. Seven out of ten postcodes have a vacancy rate under 2%, and nine out of ten (87%) postcodes have less than three out of every 100 rental properties vacant.
The vacancy rate across the whole country – except for Victoria– is tight, with an average vacancy rate of 1.7%. In Victoria, the vacancy rate is close to 3%.

It has been this way for some time, but I suspect we are reaching some tipping point.
Rents growing faster than the CPI

Since 2008 the rental component of CPI has been rising faster than the average inflation rate. This is the first time this has consistently happened since the ABS separated out a rental housing inflation in the early 1970s.
According to the ABS, CPI rental index, weekly rents have been rising by 5.7% per annum across Australia since mid-2008. Brisbane has enjoyed a 6% annual gain, compared to, say, Melbourne’s 4.8% yearly increase.


What about yields?
Gross rental yields, as a result, have increased across the country with traditional suburban detached housing approaching 4.5% and attached product (small-lot housing too) often exceeding 5% these days.
Rental yields across many parts of Queensland– reflecting the state’s undersupply of new housing – now exceed 6% gross. Hot rental spots in Queensland include Roma, Emerald, Calliope, Gladstone, Toowoomba, Mackay and Brisbane’s inner western suburbs. Even the southern part of the Sunshine Coast and northern suburbs of the Gold Coast have seen weekly rents lift higher than the state-wide average (6% per annum) in more recent times.

There are 440,000 residential rental properties across Queensland, which is up 7% or by 31,000 investment properties over the last twelve months.
Post GFC, and with it all the scare-mongering, too many residential investors tried to sell their investment properties…and to no avail.
The wise amongst them have now reset their plans and are renting their properties out again; hence the lift in available rental properties. Yet despite the 31,000 increase in supply, the vacancy rate is falling and rents are rising.


The biggest increase in recent supply has been in those areas – Gladstone, Mackay and around Toowoomba – with the largest increases in weekly rent.
Median weekly rents have risen by 45% over the last twelve months in Gladstone. They are up about 25% in Emerald; 20% more in Roma; 15% higher in Mackay and up about 10% across Brisbane’s inner west.
Whilst certain geographical areas across Queensland are doing better, rent-wise, the upward trend is consistent across product types, again reflecting the tight overall rental supply.
Weekly rents for one-bedroom apartment stock are up 6% on last year; two-bedroom apartments up 5%; ditto for three-bedder units and three-bedroom detached houses. Larger houses have enjoyed a 6% lift in weekly rents and Queensland townhouses are up 4% on last year.
About 40% of Queensland’s rental stock is now apartments; half are detached dwellings and one in ten, townhouses.
I have been saying in my market overview presentations, that investors – moving forward (sorry, I sometimes cannot help myself, and no, this wasn’t a Freudian slip) – should treat capital growth as a bonus.
Income is certainty.
The best residential investments, for mine, will be those with the most secure rental returns.

So how do you get a better rental return? Of course you should buy well. Investment property in a key location – supported by infrastructure; close to a growing workforce; designed to be shared (think beds and baths); with adequate storage/parking and is easy to maintain – usually rents out well and enjoys consistent rental growth.
And for those who already own an investment property, the best thing you can do to improve your rental return is try a new property manager.
Rising rents have not yet translated to price growth.
But they will.
Once we get over our collective mopes, investors will start buying again and this, in turn, should lift prices. We anticipate residential prices to rise by between 2% and 4% per annum across Australia over much of this decade. Property prices in Queensland, Western Australia and across much of Sydney are likely to lift higher than, and maybe twice as fast as, the Australian average.

http://propertyupdate.com.au/rising-rents-a-certainty/
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The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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Admin
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Quote:
 
Perth rents rise to $420 weekly median but no rental crisis looming: REIWA

By Alistair Walsh
Thursday, 12 April 2012

Perth rents are expected to keep rising as vacancy rates remain low and tenants face increased competition for houses, according to the Real Estate Institute of Western Australia.

Median rents have increased to $420 a week during the March quarter, up 10% from the same time last year, REIWA figures show, but there are reports of many potential tenants offering $50 to $100 more a week to secure a lease.

Earlier this year callers to ABC radio's 720 morning program told of 30 to 40 people turning up to open homes only to find out later the successful applicant had offered significantly more than the advertised price.

REIWA President David Airey told the ABC that while it's not illegal and landlords are unlikely to reject the extra money, it's not a practice he encourages.

Managing director of Stockland Matthew Quinn says suburban Perth had once been one of the softer rental markets in Australia but vacancy rates in Stockland projects there have fallen to less than 1%.

"Rents are going through the roof, just ask anybody who's tried to rent a house in Perth in the last six months – it is a nightmare," says Quinn.

Quinn predicts the housing shortage will lead to a rental crisis. He says massive queues of house-hunters at rental inspections will drive rental prices up.

"It's already happening and it's going to happen in greater and greater numbers because housing is undersupplied, it's unaffordable and rents are now going up."

Read more: http://www.propertyobserver.com.au/western-australia/perth-rents-rise-to-$420-weekly-median-but-no-rental-crisis-looming-reiwa/2012041254247
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Elastic
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Michael Matusik might need to wipe his chin after getting Frank all excited with that "report".
Only a rat can win a rat race.

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zaph
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Frank Castle
13 Apr 2012, 11:01 AM
:D :tu: Wonderful news :tu: :D

does it come with a 101pc guarantee?

talking of 101% guarantees, beatraps been rather quite for rather a long time, a whole lot of new members wouldn't be aware of his forecasting prowess. please puppet master bring him round for a spin.

bear trap.bear trap.bear trap.
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TED BULLPIT
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You forgot to mention that rental vacancies are UP 8.4% YOY Mr Castle. ;)
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BearTrap
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imho we shall condiser this rents "leaping " is begining of this "new boom" I tell mr ratsus about last yr.. infact I predict on ghpc forum 2011 shall be 2nd year of the "bear trap" & this is proved 107 pc true.. infact I shall guarnatee 2012 is start of "new boom" in australia & houses shallleap ! pls consdier.. thks !

another big "announcement" I shall be making today is "discover" of mr foundation permament scary high anus miserablis from old ghpc forum.. :o

https://twitter.com/DanGleibitz

mr foundation.. so much am I "missing" you.. pls shall you return & telling us about melbourne "dead cat bounce" ? thks !
Bear Trap: A false signal that the rising trend of a stock or index has reversed when it has not. This can also occur during a bear market reversal when short sellers believe the market will sink back to its declining ways. If the market continues to rise, short sellers get trapped and are forced to cover their positions at higher prices.
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raveswei
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NAB would disagree with you:

Quote:
 
Nationwide house rents increased 1.1% in Q1’12, but there was a notable softening in rental markets in SA/NT and Victoria. National rents forecast to climb 2.9% over the next year and 4.3% over next 2 years

http://www.scribd.com/doc/88810259/Residential-Property-Survey-March-2012

2.9% pa and 4.3% over two years actually means rents will fall in real terms and wage terms. So future looks brighter for renters, not so bright for landlords who projected their future profit based on “house prices double every 7 years” and “rents to the moon”
http://popping-bubble.blogspot.com/

Thinking of an Australian property speculator (PI):
Inaction = missing opportunities.
Missing opportunities = losing.
Too much thinking = inaction.
Thinking = missing opportunities.
Therefore thinking = losing.

disgraceful little man Frank Castle owes a house to Salvation Army

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Frank Castle
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Business As Usual

Elastic
13 Apr 2012, 11:35 AM
Michael Matusik might need to wipe his chin after getting Frank all excited with that "report".
Excited?
Hardly,
I have been getting rent rises faster than CPI for ten years now.
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zaph
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BearTrap
13 Apr 2012, 11:55 AM
imho we shall condiser this rents "leaping " is begining of this "new boom" I tell mr ratsus about last yr.. infact I predict on ghpc forum 2011 shall be 2nd year of the "bear trap" & this is proved 107 pc true.. infact I shall guarnatee 2012 is start of "new boom" in australia & houses shallleap ! pls consdier.. thks !

another big "announcement" I shall be making today is "discover" of mr foundation permament scary high anus miserablis from old ghpc forum.. :o

https://twitter.com/DanGleibitz

mr foundation.. so much am I "missing" you.. pls shall you return & telling us about melbourne "dead cat bounce" ? thks !
Mr Bear Trap - maybe you shall consider posting on the other forums to educated them about the leap in rent?

(simply saying bear trap three times in a post is not enough to summons him - you must also click your heals together.)
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earthsta
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zaph
13 Apr 2012, 01:09 PM


(simply saying bear trap three times in a post is not enough to summons him - you must also click your heals together.)
It only requires that shadow see the post :re:
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