Hi everyone,
Is there really that much of a shortage of houses/apartments for rent in Perth?
When i look on the realestate.com.au website it doesn't seem to be that way so my theory is that some people are just being fussy with where they want to live. My situation is that i have just finished building my 2nd investment property here in Perth (Ridgewood) for $330K and it was rented out within the first few days for $360 p/w so it is neutrally geared once the 1st property i have offsets the losses on the 2nd. The tenants wanted airconditioning so i chucked that in for them. i didn't think twice about it as i was just happy to get it rented out so fast. My property manager said the tenants would pay $10 extra p/week so it was a bonus. The West Australian paper keeps on banging on about how there is such a shortage of rental accomodation in Perth that potential tenants are missing out so they have to continue to stay at home with mum & dad or house share. Now i am starting to hear about potential tenants being forced into bidding wars?? I imagine that this is not the same situation in other parts of Australia at the moment? I just happened to read in the BRW that one guy is setting up a real estate auction website for landlords where anyone can bid on rental properties so landlords can receive the best rental prices. At the moment i am self employed with $20k per year earnings and business is quite slow so once i land a part time job i would like to start investing again in apartments. Is the market really picking up or is it just the mining boom?Cheers
Rob
Been following the to lets in the weekend papers and they have contracted over the years to such an extent that the current to let in the papers are as short as I have seen for many years.
Newspapers, in my mind, are a more accurate indicator as there are costs involved with each insertion and therefore ads will be pulled as soon as property is rented.
A couple fo property managers I know who work in Vic Park area are sayign the same tjhing.
Looking good for stronger rents in the Perth market at the moment.
If the reported property shortage is on the money I expect we'll see rents further marching.
Thanks Derek. Interesting to read your insights. Much appreciated.
Hi Rob,
The big thing is that the Perth market is segmented. You can't compare an apartment in Perth CBD to a Town house in Maylands or a house & land in Darch.
There is definitely evidence to suggest that the Perth rental market is in short supply:
As you can see the rental vacancy rate is around 2.4%, a balanced market is at about 4%, so it is in short supply. However, if you're talking about rent rises, we are seeing this varies depending on the suburb.In our Momentum Approved Suburbs (the areas we buy), we have seen rent growth of 10%+, in some other suburbs it has been higher. However, if you compare this to Mandurah (and some other areas), there hasn't been much, if any, rental growth – because this market is still over supplied.
When you plan to get into property investing more deeply, some advice is to please stay away from new builds or apartments. Look at buying in established areas. I won't even charge you for that advice.
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