Melbourne’s rapidly growing population has caused unprecedented demand for rental properties and an alarming (To some.) undersupply of stock. Across Melbourne vacancy rates in the rental market are exceptionally low by historical standards. Industry experts report vacancy rates at 1.5%, but in the blue ribbon suburbs that figure might be too high.

Demand being way out front of supply always creates a bidding war, and rental prices have risen accordingly. There is much understandable angst on the part of renters, who are queuing and missing out, and paying more than seems fair for properties they once wouldn’t have considered. It is a distressing time for many renters, a hard market to enter. But the market is a model of amoral efficiency because it is powered by countless folk making self-interested decisions, and what might be bad news for some is generally good news for others. And these are great days to be a lessor. Increases in rental yields have been both incessant and substantial. At present there’s no having to endure the anxiety of an empty investment property, nor are landlords suffering the anguish of properties that don’t pay their way. Investing in a rental property then, would seem a no-brainer.