Hi
My first post for a while.
My question is,does anyone have the figures that tracks rent increases after property price booms.I am talking about the biggger booms which seem to happen every 14 years or so.
My reasoning is that if rents tend to go up lots 2-3 years after a big boom then now would be a good time to buy a few proerties that are maybe just not positivly geared knowing rents will rise soon.
I feel rents have risen only 10-20% sine 2002 and most property has at least doubled.
So things are out of wack a bit .
Any thought on this?Hi,
Rents are definitely low compared to values at the moment. This was a HUGE boom that we have gone through.
What you are considering is speculation..
A lot of people will get burned speculating in this market.I personally think that people can’t afford much of an increase in rents, so this (to me) means that house prices will continue to fall instead or rents rising.
This is just my opinion…
Del
<<<<<I personally think that people can’t afford much of an increase in rents, so this (to me) means that house prices will continue to fall instead of rents rising.>>>>
I agree. Incomes have not increased over the same period that property prices have boomed. The increased property prices have resulted from a decrease in interest rates. As interest rates are low investors are prepared to accept lower rents especially those who have had their properties for a long time.
But as rates rise I believe you will see some rental increases as there will be less investors in the market and more demand on rental housing.
I disagree about increasing rents. I think they have been stagnant for the best part of 5 years in Sydney. In places it seems as if they are going backwards to try to secure tenants. too many investors perhaps
You make a very good point there Anubis
Hi again
I agree with the post about speculating,which is why I was hoping someone would have some figures to tie in when rent normally rises after big booms.I would be happy to bet on history repeating.If the average couple cant afford to buy a house and it is generally much cheaper to rent,then wouldnt supply and demand eventually push rents up untill they are line ball with buying a house?boo Boo
dont forget there is a nig oversupply of inner city rentals, which will take some time to shake out, unit then rents will struggle to increase
hey nah
While I have few inner city IPs, I plan to generally increase rents on the anniversary of my rentals. So far no tenants have moved or complained. Most of my IPs are “middle of the road” type so we avoid the low wage earners etc.
This doesn’t answer the original question but perhaps others will say what their plans are and we may be able to form a sort of consensus.
Regards Marsden
Originally posted by booboo:Hi
My first post for a while.
My question is,does anyone have the figures that tracks rent increases after property price booms.I am talking about the biggger booms which seem to happen every 14 years or so.
My reasoning is that if rents tend to go up lots 2-3 years after a big boom then now would be a good time to buy a few proerties that are maybe just not positivly geared knowing rents will rise soon.
I feel rents have risen only 10-20% sine 2002 and most property has at least doubled.
So things are out of wack a bit .
Any thought on this?Booboo,
I don’t know where you get your information, but I suggest you recheck your source as your speculation and data analysis is grossly out of whack!!! Anyone who knows the property market will tell you that rental yields have in fact declined significantly in the last 5-10 year, and at best remained stagnant in most major cities.
Of particular concern, whoever told you that rents increase after major booms, is seriously IMO nothing short of a salesman/woman trying to flogg you a property using this fallacy as a major selling point!!!
Jo
Thanks for the replies.
I am voicing my opion on some points and am hoping someone can steer me to some solid facts re the other points.
I cant see how rents cant go up in the next year or so ,but am happy to be told otherwise.
booboo
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