The winter rental market will be like any other before it. There is a shortage of houses for rent and demand is off the charts, unprecedented. At Abercromby’s prospective purchasers of property often ask us why there is such a shortage of rental properties, and the answer is partly the lack of movement into and out of Australia at present. People are staying put, not vacating. This has been exacerbated by the recent government mandated compliance standards. While they have a good overall general effect on rental stocks, many rental providers of older rental properties see compliance as too much of a hassle and are therefore selling them, thereby adding to the shortage. This shortage is leading to price rises in rents, with apartments typically within the CPI, but townhouses and houses pushing higher, beyond ten percent.
With this rental property shortage continuing and intensifying over the next year rents will rise further and purchasing an investment property will become increasingly economically appealing.
So, if you’re contemplating becoming a rental provider, please call our experienced Investment Property Advisor Lilly Schneider on 9864 5300 for a confidential discussion.