Where To Now With Rental Rates?
Landlords need to be aware of the changes in the rental market. Figures from RPData showed that over the June quarter rental rates decreased across Australia’s capital cities.
Rental rates have risen markedly over the last 3 years, up to 30% in some cases, but where is the trend going to be now.
Lack of housing affordability and less new homes being built had forced renters to pay the increases but with housing affordability improving, new home buyers purchasing their own homes, it appears that the rental rate increase may have peaked.
Even with these figures the capital cities have recorded less than 3% vacancy in rental stock. Units have shown to remain very popular as they offer the renter a cheaper option.
It will remain to be seen what will happen over the next year as house prices are expected to creep up and with the unknown factor of any interest rate increases.
Will any of this affect your property portfolio?
As a landlord it would pay you to research what is happening in the area surrounding your investment properties and watch the trend very carefully. If rental prices do drop and you have a vacancy you may have to make the decision to lower your rents so you need to be aware how this will affect your income and your loan repayments.
Filed Under: Property Investment
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