澳洲Australia property Softing of the Rental Market?? | Sydney


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


I am finding quite a few vacancies across my portfolio at the moment.

I have had my Annus Horribilus in terms of rentals. So far I have had 7 of my tenants move over the last 3-4 months! Filling vacancie is now taking 3-8 weeks as opposed to 1-3 weeks a few years ago.

Is anyone else experiencing this?

Initially I thought it was due to softening of the Qld market....but have also experienced this in NSW and VIC. It could just be harder to get tenants in winter!

Would love to hear your thoughts or experiences!  

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Sash, where mine are in Vic, things are pretty tight, so no complaints Also the Sydney rentals in middle-west are doing just dandy. In fact if anyone leaves, the rent will increase.

I have had a break lease on one in Qld and it's looking like it will dawdle a little; it's on the GC

Could be winter, however also with buyer sentiment waning (in a general sense), I think that some renters MIGHT be looking buying on softer clearance rates and/or that they have had to curtail the luxury of solo living, perhaps they are doing shared rentals to save.

So far no major dramas for me. It certainly must suck when so many vacate at once.....the hiatus can impact on cash flow, although remembering you're nicely CF +ve anyway. Jst another road bump(s) that you'll get over.  

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No problems here. All mine are in QLD. 2 within 10kms of Brisbane CBD, one of these turns tenants over quite readily, but is filled within the first couple of days. The third is in Toowoomba, which has one of the smallest vacancy rates I have seen (.3%). So all good here.

Are these top end properties that you own?  

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sash said: ↑
I am finding quite a few vacancies across my portfolio at the moment.

I have had my Annus Horribilus in terms of rentals. So far I have had 7 of my tenants move over the last 3-4 months! Filling vacancies is now taking 3-8 weeks as opposed to 1-3 weeks a few years ago.

Is anyone else experiencing this?

Initially I thought it was due to softening of the Qld market....but have also experienced this in NSW and VIC. It could just be harder to get tenants in winter!

Would love to hear your thoughts or experiences!Click to expand...
G'day Sash,


My opinion is that there was always going to be a softening of the rental market as a result of the increased FHOG in 2008 and 2009. That pulled many tenants into first home buyers. When first home buyers slowed down investors moved into the market big time based on low rates, high yields etc.

So extra rental properties and less tenants was always going to cause a short term glitch. First home buyers are gone for now so there will be a slow build up in rental demand to fill excess stock. Don't Panic:cool:

I settled on a property in Mosman last Wednesday and got a tenant on Saturday and have only one advertised in portfolio which is in Mentone Vic which is not vacant until next week but has been advertised for 3 weeks with no joy as yet.

Rental increases have been minimal but managing to keep tenants in place which is nice.

Cheers

BT  

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Am i correct in assuming these are your more regional properties Sash?

I think it depends on the area as well, when i was looking at purchasing property in qld, what i did notice was their was alot of stock listed online for rent.

I have 1 vacating at the moment, we have a tenant signed up with no vacantcy (Western Sydney) Last time before this experiening vacantcy was about 4 months ago
their was approx 1-2 weeks vacantcy from memory (South west sydney)

But yeah you got that good cash flow which can mean you can wait it out. I've just had 2 defaulting tenants at the same time which is abit of a pain.

Regards,

RH  

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sash, two of mine bacame vacant recently. One took about 4 weeks and the other about 3 weeks to re-let.

I guess if you have a tenant in someone else's existing rental, then they will have to give 2 weeks notice to their LL. So you're up for 2 weeks min. anyway before you begin to advertise etc.

Also you are right. Not many tenants look to move over winter - so some of this will just be a seasonal thing. However, I do notice plently of tenants still applying (when mine were vacant) but they got screened out by my PM as being unsuitable. Better to have a couple of extra week's vacancy than a bad tenant IMO.  

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Perth Market - I was talking to a politician in Perth recently. She mentioned that there is a huge demand for state housing homes. She said it's part of the usual cycle when properties have boomed, and tenants can't afford to rent privately. Apart from being a quite time of the year, maybe some of the tenants have turned to public housing?  

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Propertunity said: ↑
.......................... I do notice plently of tenants still applying (when mine were vacant) but they got screened out by my PM as being unsuitable. Better to have a couple of extra week's vacancy than a bad tenant IMO.Click to expand...
Yep! Even when we think they're the right one's they may end up not being so. :( Don't rush just to fill a void with undeisrables.

I find if things are slow, offering a week or two free (at the end of the lease or staggered during term) is better than dropping the rent.

Whilst the final wash may yield the same rent return, at least when the lease is at the end and reverts to monthly tenancy, you've already got them at the higher intended rent, with more room to move from there if need be.

Professional tenants who know their rights better than you and I of course won't go for that, however perhaps it's best they are not out tenants anyway :p ;)  

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A few years ago I had five vacant at the same time in a Regional area. Turned out that part of the problem was the PM who was filling properties for local LLs and not the abscentee LLs. It took several months to get to the bottom of the problem and switch PMs. On top of that I had some local problems with a couple of non paying tenants. Then, just when I thought things couldn't get any worse I had several large and very costly maintenance problems.

It seems that when things go south, they do so in a big way. Don't worry, things settle down again really soon so long as you have the buffer to see you through.  

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Put two in NSW CC on the market last week. Found a tenant for one in a matter of days, the other not yet.  

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Shoalhaven nsw.
Market still tight for desirable area. Infact all areas are still tight. One of my properties was advertised Friday. I have 8 couples going through tomorrow. Half of which were happy to sign before inspection.

New housing around here slowed to a trickle around 2003 so no new stock to boost rentals. Immigration is a non issue and no negatives employment wise. So I'm not anticipating any big swings either way.  

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sash said: ↑
So far I have had 7 of my tenants move over the last 3-4 months! Filling vacancie is now taking 3-8 weeks as opposed to 1-3 weeks a few years ago.Click to expand...
No, hot as every. With our last unit, tenant out, and a new one in within the week. And I know people who are looking to rent, and finding it very hard completing for rentals with many other people.
Maybe your rent is too high? How much has your 3-8 weeks without rent cost, for a few dollars less.  

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INVSTOR said: ↑
Perth Market - I was talking to a politician in Perth recently. She mentioned that there is a huge demand for state housing homes. She said it's part of the usual cycle when properties have boomed, and tenants can't afford to rent privately. Apart from being a quite time of the year, maybe some of the tenants have turned to public housing?Click to expand...
I was speaking to a workmate who's looking to rent in ELLENBROOK at the moment, he said he's amazed at the number of people chasing rentals in the area and is currently sharing with a friend until he can get something  

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i've got one needing to rent in Sydney but have only started advertising. Hope it doesn't take too long but after 2 tenants havign to go to tribunal in the last 2 years, i will take my time to make sure its a good tenant.  

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eyespy said: ↑
i will take my time to make sure its a good tenant.Click to expand...
The trouble is, you probably won't find out until it's too late.

Regards
Marty  

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eyespy said: ↑
i've got one needing to rent in Sydney but have only started advertising. Hope it doesn't take too long but after 2 tenants havign to go to tribunal in the last 2 years, i will take my time to make sure its a good tenant.Click to expand...
Is this your only one? Two trips to tribunal in two years is pretty good. I find that even good tenants will have a slip from time to time. Going to the tribunal is not a problem. It's the ones that don't stick to tribual orders that are the problem.  

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redwing said: ↑
I was speaking to a workmate who's looking to rent in ELLENBROOK at the moment, he said he's amazed at the number of people chasing rentals in the area and is currently sharing with a friend until he can get somethingClick to expand...
My friend has a property there and her tenants are usually renting while they build. She always has a good pool of tenants to choose from. It's probably a better ROI then closer to the city. Is he building out that way?

This property has been vacant for a while - pretty ugly though, maybe there is a shortage?

http://www.realestate.com.au/property-house-wa-ashfield-404479644  

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Mine are mostly in Brissie, Sydney, Melbourne, and Adelaide.

Only one in a regional town and that is rented with 9.5% return.

I am still CF+ by $1500 per month....but was sitting at about $4-5k....just a bump on the road...hope to get on track in the next month or so!


Ridin-High said: ↑
Am i correct in assuming these are your more regional properties Sash?

I think it depends on the area as well, when i was looking at purchasing property in qld, what i did notice was their was alot of stock listed online for rent.

I have 1 vacating at the moment, we have a tenant signed up with no vacantcy (Western Sydney) Last time before this experiening vacantcy was about 4 months ago
their was approx 1-2 weeks vacantcy from memory (South west sydney)

But yeah you got that good cash flow which can mean you can wait it out. I've just had 2 defaulting tenants at the same time which is abit of a pain.

Regards,

RHClick to expand...
 

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the first tribunal case was ok, they moved out, owed me rent and left the place ok. The second one left a huge mess and owed me money.
So i understand that quite often you can not tell til too late they;re a bad tenant. But do you take your time and wait for a tenant who ticks most of the right boxes or just take a chance esp if its been vacant for a while  

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sash said: ↑
Mine are mostly in Brissie, Sydney, Melbourne, and Adelaide.

Only one in a regional town and that is rented with 9.5% return.

I am still CF+ by $1500 per month....but was sitting at about $4-5k....just a bump on the road...hope to get on track in the next month or so!Click to expand...
so jealous right now! lol

Have you posted your story on here (your journey so to speak) i would be interested in having a read if its available. My goal is to obviously be in a similar position to yourself

Regards,

RH  

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