Hi Again
I have just read an artical in this saturdays Gold Coast bullitan.
It states prices drops for houses and prices increases for rents.
the figurse thay state are minus 2-3% for houses and a small increase in rent.
But says rents are about to increase.
Does any one else believe as I do that rents are due to go up[on the gold Coast and Brisbane]at least 20% in the next 12 -18 months?
boobooHi Booboo,
Rental increases of that magnitude would be dependent upon the rental market being very, very tight.
While there has been some tightening in some of the major markets around OZ as a result of the reduced affordability of homes it hasn’t been to the extent you believe.
Don’t forget the rental market is ‘controlled’ by large numbers of ‘mum and dad’ investors who for various reasons do not actively manage their rental properties and thus their returns, leases are up for renewal at various times in the year and there is no single entity that says ‘rents will go up by x% in the new year’.
Derek
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Originally posted by booboo:Does any one else believe as I do that rents are due to go up[on the gold Coast and Brisbane]at least 20% in the next 12 -18 months?
Not likely!!! [blush2] Booboo you obviously have investments in these places, which is great, and although I believe slight rent increases will be experienced in most OZ cities over the next 12-18 months, I hardly think they will be as extravagant as 20% especially in the current market. To that end, I daresay IF house prices drop any further encouraging more investors to buy and thus creating an oversupply, the likelihood of such increases will be even less.
Such increase in rents occur as the result of several factors, one of which is due to IR skyrocketing, forcing people to stop buying, tightening affordability to such an extent that those once considering entering the market return to their original option of renting, and hence creating a bigger demand for rental properties. This is simply not the case at the moment, as although affordability is an issue even now, IR are still amongst the lowest in years and hence will stagnate rental yields at worst, or encourage slight increases at best.
But hey, no harm is hoping; like you, I can but wish!!! [biggrin]
Cheers,
Jo
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