With all the chatter from property people, me included, about a housing crisis, you would have thought August would have been busier than a Parisian tattoo parlour after the closing ceremony. But it isn’t.
It seems there is a change in the air. We have seen property inspection numbers at rentals begin to decrease in many price sectors, with the high-end market the only one to upswing.
The previously super hot sub-$500 per week market is still chock-a-block with prospective tenants but finding one for them to rent is nearly impossible.
Largely because the properties that used to be under $500 per week are now asking for much, much more. One of the accidental drivers is a big change from the government intended to protect tenants, but it seems it could be having an adverse effect.
The enforced new change fixes the weekly rental price for a property for a 12 month period.
This applies even if the tenancy changes or is a shorter lease and yes, even if they renovate!
The trend we are seeing emerge now is owners increasing their rent significantly when the 12 months ticks over if the property becomes vacant.
Their common language is, ‘We can always come down, but if I can’t review the rent for 12 months then let’s put it up high and see how we go’.
The effect is properties are sitting idle which isn’t helping the situation and if the tenants keep moving up to secure a property then that crystallizes the new market price.
Getting better returns from your property does not always require a major renovation. Strategic low cost upgrades can significantly improve buyer appeal rental demand and resale value. Here are five smart improvement ideas that deliver real impact without overcapitalising. 1. Create strong street appeal First impressions are critical. A well … Read more
The Victorian government has proposed new laws that would require sellers and agents to publish their reserve price seven days before an auction. These proposals haven’t passed parliament yet, but if they do, they will certainly throw a cat among the pigeons. Victoria wants change because they receive thousands of … Read more
Cush for Comment – Why changes to rental laws are not helping the housing crisis
With all the chatter from property people, me included, about a housing crisis, you would have thought August would have been busier than a Parisian tattoo parlour after the closing ceremony. But it isn’t.
It seems there is a change in the air. We have seen property inspection numbers at rentals begin to decrease in many price sectors, with the high-end market the only one to upswing.
The previously super hot sub-$500 per week market is still chock-a-block with prospective tenants but finding one for them to rent is nearly impossible.
Largely because the properties that used to be under $500 per week are now asking for much, much more. One of the accidental drivers is a big change from the government intended to protect tenants, but it seems it could be having an adverse effect.
The enforced new change fixes the weekly rental price for a property for a 12 month period.
This applies even if the tenancy changes or is a shorter lease and yes, even if they renovate!
The trend we are seeing emerge now is owners increasing their rent significantly when the 12 months ticks over if the property becomes vacant.
Their common language is, ‘We can always come down, but if I can’t review the rent for 12 months then let’s put it up high and see how we go’.
The effect is properties are sitting idle which isn’t helping the situation and if the tenants keep moving up to secure a property then that crystallizes the new market price.
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5 Smart Upgrades to Boost Your Property’s Value
Getting better returns from your property does not always require a major renovation. Strategic low cost upgrades can significantly improve buyer appeal rental demand and resale value. Here are five smart improvement ideas that deliver real impact without overcapitalising. 1. Create strong street appeal First impressions are critical. A well … Read more
Read Full Post
Why Proposed Laws For Auction Price Guides Won’t Work
The Victorian government has proposed new laws that would require sellers and agents to publish their reserve price seven days before an auction. These proposals haven’t passed parliament yet, but if they do, they will certainly throw a cat among the pigeons. Victoria wants change because they receive thousands of … Read more
Read Full Post