Good questions there from @terryw. First decide whether you’re a growth investor or income investor. In light of current rental yields, unless you’re sitting on seven figures of cash, you’re probably a growth investor.

Unfortunately, rental vacancies are at an all-time high now in Perth, about three times that of the long-term average. This is pushing the median rent price down, as tenants have a lot to choose from. It’s definitely a market-wide problem, so not necessarily your property managers fault.

Market pressures will make it tough to increase rent, so you’ve done the right thing by trying to add value to attract tenants while also dropping the rental price. See who your competition is and look for other low-cost, creative ways to attract tenants – add A/C, a week or two free rent, etc.

If you decide to sell, you may want to act fast as other investors will likewise be weighing up how to solve the same problem. It’s already a buyer’s market, but if supply increases, prices could drop further.

@deancollins I’d say the recent jobs report is mostly smoke and mirrors – many of those new jobs are low-paying and part-time in hospitality and retail. Don’t see another Fed rate rise coming myself.

• This reply was modified 8 years, 9 months ago by  Jason Staggers.

Tracey, have you looked into Steve’s McKnight Property Apprenticeship course? Whether it’s his training or someone else’s, I’d suggest educating yourself. Private message me and we can set up a complementary mentoring call to discuss your situation and your options moving forward.

Hi @brigadoon. I wrote about this earlier in the year. Let me know if it answers your questions. All the best.

https://www.propertyinvesting.com/will-investors-soon-lose-negative-gearing-cgt-benefits/

7 percent plus GST is an industry standard, but the best way to find out is pick up the phone and call three different property managers to ask. Keep in mind management fees are negotiable, but you often get what you pay for. Get a referral from a trusted source if possible. Find a good one and build a relationship. Then after a year, you could always shop around for some comparison quotes and ask them to lower their fees.

Yson wrote:

well, i bought into mining town in QLD in May 2015, wait 2 mths to rent out after slashing the rental.

If rents are still sliding, that means values are still falling. Thanks for adding to the conversation Yson.

Would you buy that property today at it’s current price? If the answer is no, then why would you continue holding it, other than the emotional pain of admitting failure? Psychologically, you’ll make a better decision if you can consider the loss in value as money that is gone forever. Otherwise, you’ll be tempted to hold onto it in hopes of a recovery, which would amount to little more than speculation.

Thanks @dtraeger for clarifying. @sev6968, because Aussie property has become so expensive relative to rents, unless you’re earning a lot of money from your job or business, adding a significant amount of passive income through real estate over a 12 month period is going to be difficult. As you may have read in Steve McKnight’s book, From 0 to Financial Freedom, the blueprint for the current market is to use quick-cash strategies to manufacture growth and build a large capital base. Then you can reinvest your equity into debt-free higher yielding assets, like commercial real estate. Of course, if you have 15-20 years or more to reach your income goal, and you’re a disciplined saver, you can choose a more passive investing approach, like buying and holding positive cash flow properties and hoping the market delivers some of the gains.

• This reply was modified 9 years, 2 months ago by  Jason Staggers.

It’s interesting to see nearly as many concerned about government regulation as economic trouble overseas. What changes in regulation do think investors should be most concerned about?