I thought this was interesting… not sure how accurate a picture it paints but still interesting.
This is very interesting.
I think the reason people are seeing rents as unaffordable is the price of paying a mortgage is now reaching the tipping point where it's the same each week to buy as house as it is to rent.
There is also no explanation of where these properties are. The same properties located in Syd and Melb would probably cost another $100-200 to rent per week. It's all relative. And interesting!
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeWhat a load of rubbish. Typical MSM misinformation. You cannot raise rent during a lease period unless it's by mutual agreement. People break leases because their circumstances change, transferred, unemployment, sickness/injury, purchased, change of living location etc.
I'll say that I did actually move due to the rent going up but I was at the end of a lease….. and it was already $700 p/w…..
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Me“…There are 2440 rental properties currently on the market, down from a peak of 3708 during the first week of July last year, according to REIWA….”
I’m amazed by the diligence of the reporter. Hmmmm supply/demand, Fewer properties available & rents increase – isn’t that a given?
It is other economic forces at play causing tenantd to vacate eg FBT on employers providing accommodation, general affordability & loss of employment. Some tenants see the writings on the wall & it is easier to pay the break fee & move to cheaper digs than to honour the lease.
Bottom line is tenants breaking a lease will still be responsible for their rent and any costs incurred by the landlord.
Vacancy rate is still below 2% (according to this article anyway) which is extremely low for winter.
Slow news day.
Must have been.
What does "more" mean? 1% more? 10% more? I think it's just a story to fill the paper.
You can't accurately say why a person is breaking a lease.
As rents go higher though more people will opt out to buy, especially with low interest rates. They can see little monetary difference between renting and buying. But also people will look for more affordable rental properties. When I first started renting I moved a few times because the rent was pushed to high (greedy landlords!! LOL). Now I'm on the other side of the fence.
)Agree completely with this comment
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Not everyone is eligible to buy and not everyone wants to buy. Plenty of people happy sponging off the unemployment benefits and rental assistance money on offer out there
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I found it interesting because of the vague/general comments/figures. It was even more interesting to see what other people thought. Thanks for some thought provoking comments.
JacM wrote:Not everyone is eligible to buy and not everyone wants to buy. Plenty of people happy sponging off the unemployment benefits and rental assistance money on offer out thereThis is absolutely correct!
Hi Guys,
I think there is some truth to this article. I know a lot of people looking for places to rent in Perth and have taken places for much more than they are worth just so they have somewhere to live. I think if they find somewhere cheaper they will break the lease to move in.
One of my friends has been looking for over a month, an agent called her to say she had made the final 2 and how much more was she willing to pay, she said an extra $50 a week. When the agent called her back she hadn't got the house as they other tenant had offered more.
I think some landlords are probably getting on the band wagon if the leases are ending and that could be a reason for people moving out as well.
Thanks,
Kate
Hi Kate,
What you have described is entirely possible but that is very different to the article which talks about breaking leases – very different to moving out at the end of the lease.
Looking at the Perth market at the moment – I would suggest tenants who want to pay the same rent will be, in the main, either looking further afield or downgrading their premises or moving into some sort of shared living arrangement.
In general terms rising rents will see some tenants doing the maths and working out that a 'purchase' over 'renting' is an economically sound decision. All part of the normal property cycle really.
hi all, As this discussion has morphed into tenants starting to buy I thought I would share this newspaper article.which is based on a RP Data report.
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