澳洲Australia property Rents Decrease! | Sydney


在澳大利亚 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 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


After price stagnation I see many rents decreasing in Sydney.  

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Seen it first hand.

But my first hand evidence is not accepted by some, because they have been caught in the property always goes up mantra.  

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We had one of our houses rented out to a long term Tenant for 4 years at $ 820 pw.

They left, and all we could get for it was $ 700 pw.

It was advertised for 8 months, progressively going down from $ 820, to $ 800, to $ 780, to $ 750, then sat at $ 700 for ages. Agents convinced us to drop it to $ 650 pw....which we did....sat for another 3 weeks empty at that.

Article in the newspaper on a Friday saying leasing market was tightening a lot, next day we had 3 parties fighting for it....two of the groups offered $ 680 pw and the third offered $ 700 pw.

2.2% gross yield. Wacko.  

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Piston Broke said: ↑
After price stagnation I see many rents decreasing in Sydney.Click to expand...
Just part of the cycle,had to happen real estate can only lead everyone up the garden path for so long..  

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It comes in waves, and in Darwin it's hard to pick. I see rents go down, and then back up when there are bugger all properties for rent every couple of months. Thats how quick it seems to move here.

For instance: Rented a 3x2 in September for $490, now market rent is $530 because there are less available. At the time we rented this one for that price there was another 3x2 on the same street we watched go from the hgh $400's down to $390.. And that was over the course of about 6 weeks. Now it would go right away for $500 or so  

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Ideo said: ↑
Seen it first hand.

But my first hand evidence is not accepted by some, because they have been caught in the property always goes up mantra.Click to expand...
Ahh the mythical phrase " property always goes up"
Often references as what investers around here keep spruiking yet rarely if ever said by these investors. Only by people working the property crash angle.
Magazine "spruikers" aside i would love to see the list of forum members who say this.I really would.  

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Totally agree.

Hi,

Rents over in the middle SE melbourne slowed down after migration numbers fell from 2009 onwards.

Just renewed a lease for another 12 months at the same rate of $355 a week.

Regards,

Daniel  

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devo76 said: ↑
Ahh the mythical phrase " property always goes up"
Often references as what investers around here keep spruiking yet rarely if ever said by these investors. Only by people working the property crash angle.
Magazine "spruikers" aside i would love to see the list of forum members who say this.I really would.Click to expand...
But Devo, the "investors" here DO maintain that rents always go up. It has been used to justify bad returns for years.

I read today somewhere that Melb rents have dropped 1%. No biggie, but it isn't an increase either.

How many years of steady prices and rents can a -ve geared koala bear? If I were still a landlord, THAT is the scenario that would worry me. And even fully owned, I wouldn't care for Daz's 2.2%  

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Sunfish said: ↑
I read today somewhere that Melb rents have dropped 1%. No biggie, but it isn't an increase either.Click to expand...
Yes, I have found most of my IP's rents have stagnated. That 1% would be an average figure, so I gather in some places they would have dropped by a higher %.


Sunfish said: ↑
How many years of steady prices and rents can a -ve geared koala bear? If I were still a landlord, THAT is the scenario that would worry me. And even fully owned, I wouldn't care for Daz's 2.2%Click to expand...
The longer I hold property, the more I am convinced that resi property is great for growth, but lousy for income. At some point, many resi investors look to invest in higher yielding assets. (shares and com property).

Regards Jason.  

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Sunfish said: ↑
But Devo, the "investors" here DO maintain that rents always go up.Click to expand...
Can't say I've seen anyone claiming that one here anywhere ... I must be reading the wrong threads.

Also, never seen anyone say that property prices "always" go up - expect from the naysayers who claim that we always say such.

I have seen where rents have been rising over the last 12 months (mine included) and have now stagnated. But that's all part of the cycle.

The long term trend is still up - unless you bought in a dying regional area - and although (ie, my rents) there is stagnation, the rents are still up significantly on on what they were 12-18 months ago.  

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Sunfish said: ↑
But Devo, the "investors" here DO maintain that rents always go up. It has been used to justify bad returns for years.Click to expand...
We must be reading the forum from parallel universes. Over a long term rents do go up, like bread and milk and shoes but I don't think I've ever read here on SS that rents (or house prices) ALWAYS go up. There are stacks of threads and individual posts acknowledging that there are long flat periods, and sometimes decreases (like right now in lots of areas) in house prices.

It seems that the ones who reckon "rents and/or prices ALWAYS go up" are those people apparently quoting us.

House we are getting $525 per week for started 12 years ago at $190 per week. In that time, we dropped the rent probably twice to get it rented. Most of the time though over that time, we renewed for the same amount or for a higher rent, mostly when tenants changed. That is just one house in one suburb. But I still maintain that "rents do go up" like most other things we buy or consume.  

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We can all have selective recall.

Bye.  

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Why don't you find a post where one of us has said that rents/prices always go up? (And I mean that in the spirit it is meant, you cannot just quote my previous post.)  

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wylie said: ↑
Why don't you find a post where one of us has said that rents/prices always go up? (And I mean that in the spirit it is meant, you cannot just quote my previous post.)Click to expand...
Be nice. I'm 70 in a few days and you expect me to save you the time and effort of searching back through threads a few years old, the days when I still cared about this fools errand you guys are on.

When I cared I made the point that inflation DID NOT inflate away your debt, because you paid your lender in CASH every month. You then paid the lender his income over and above. The tax rebate reduced that a little but it is still a cost. This is self evident so the only defense was "rent increases reverse this". I still bear the scars of the attacks I suffered, so don't try and tell me I'm dreamin'.

Do your own search. It is there.  

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What they said.
Property always goes up.
Rent always goes up.
Can't say I've seen to many people actually say it.
I think the phrase that long-term property goes up is modified by dropping the long term and then used against the people that say it.
Like I touched on in another thread. It would be interesting to word search" property always goes up" and see who says it more. Bulls or bears.  

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Sunfish said: ↑
Be nice. I'm 70 in a few daysClick to expand...
Good to have you around I reckon for your different perspective and weight of years. Lets hope you are still contributing Thommo in another 10 years !!!  

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Sunfish said: ↑
Be nice. I'm 70 in a few days.Click to expand...
Happy Birthday. Hope you have a great day. Regards Jason  

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Forget the birthday guys. That's not why I posted.  

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Piston Broke said: ↑
After price stagnation I see many rents decreasing in Sydney.Click to expand...
I am sure this may depend where the properties are. My brother-in-law just had an increase in rent from $365.00 to $400.00 when the place has sold to new landlords.
He has been living there for about 9 years now....
Nothing about investing into property is constant and static.
I once had a tenant in QLD paying $460 where now I receive $410.
It's just part of the process and journey when investing into residential property and that's why financial buffers are necessary.  

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Sunfish said: ↑
Be nice. I'm 70 in a few days and you expect me to save you the time and effort of searching back through threads a few years old, the days when I still cared about this fools errand you guys are on.Click to expand...
I'm not the one trying to prove that we are always saying "rents/prices always go up" because I think it is something "we" are accused of here regularly but which usually is quoted by those ridiculing property investors. I don't need to search for anything. If we are "always" saying prices always go up you can find it and show us... or not.

I know what I read and others seem to think the same.

Happy birthday anyway. Hope you enjoy it and have a happy day.  

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