The Perth rental market is about to get a serious shake up if predictions by the experts are anything to go by with historic low vacancies (October 2020) and a rental price freeze due to Covid-19. However, with the freeze due to be lifted in October, tenants are likely to be faced with rental increases.
Here are the 3 things to consider if you are a landlord. 1) Do you have a good tenant or is your investment property not worth the hassle? 2) Is your tenant paying market rate, above market rate or below market rate? 3) If your tenant is on a periodic lease, who is taking advantage of who? If your tenant is paying less than market rate, the ideal time for a rent review is the next 90 days.
Get in touch to discuss your situation in confidence.
I really want to share with you what’s going on in the Perth Property Market right now because it’s absolutely bonkers.
Why the Perth Property Market is bonkers.
Inner city properties are in hot demand, with lots of enquiries and not many properties on the market. As a result, over 1000 properties sold in the past week, which is is actually the highest amount of sales recorded since 2015. Who would have thought??
This is the new Spring peak selling season and I’ve never experienced a winter like this. It is like the recent lock-down has made buyers realise that their current living arrangement is no longer suitable and everyone is out looking for something new.
Land
Land hasn’t really been in hot demand lately but with the current Federal and State building grants, interest in land is now going through the roof.
If you are looking at buying land and you want to take advantage of these grants you do not have a lot of time. At best, you probably have a month or so to buy land as your plans need to be approved by council and a builder needs to be signed up by the end of the year. On top of that you also need to start works in the first quarter of next year.
Some of the land estates in the outer suburbs have already sold out and this is probably a good thing as you are likely to be paying a premium for those lots as land prices and building costs have increased. The builders may not have increased the cost of their packages but they no longer offer free stone benchtops, extra height ceilings etc so you are paying a premium one way or the other.
Plus properties in those estates are a little bit like buying a new car. Once you leave the dealership, the value of your car drops 10-20%. As such, the existing houses in those area are likely to drop in value which will have a flow-on effect when the new houses are completed.
This means that I would caution against buying in those kind of areas and I personally think you would get a much better deal in those areas if you wait 6 -12 months or so as prices will come down.
On the other hand, if you are buying land (if you can find it) in an established suburb, such as North Perth, Mosman Park, Morley or Rossmoyne it is another story as now is a good time to jump in.
How is your property value tracking in this shifting market?
Don’t just guess – ask for a Digital Appraisal of your home or investment property. If it’s been on your mind, but you haven’t had the chance to arrange an appraisal or you would prefer to let your tenants have their privacy, this is your chance to stay informed without the hassle.
Simply get in touch with the property address and a brief description so that I can send you an estimated value based on similar homes sale over the past 12 months.
This report costs nothing and is totally obligation-free, so why wait? Simply get in touch and I will send you the report including market research and comparative market sales within 24 hours.
Adding a virtual tour to the marketing to your marketing mix when selling your Perth property is a sound decision, particularly considering the restrictions that COVID-19 creates. In this short video, find out how a virtual tour works and how you can take advantage of this special offer (limited time only).
To find out more about how you can take advantage of this special offer or if you simply have a couple of extra questions in regards to Virtual Tours, simply fill out the form below or call 0466 725 866
With the world going crazy and with the real estate market facing some really challenging conditions, why not start a new real estate agency?
Some might call it crazy, yes, but anyone that knows me will also know that I always relish a challenge and so the time has come to start something new. This is why I am now in the Haus at The Haus Exchange!
In particular, I have created The Haus Exchange in order to provide fully customised and personalised service as part of an agency where we will always treat all of of our clients just like our friends and our family instead of just a number. We aim to find out exactly what our clients want and what they need and we then work together as a team to achieve that goal every time.
Our Haus is your Haus and anything is possible when you are in The Haus!
Rasmus
What Is Your Home Worth?
Enter the address below for a Digital Property Report that highlights the market value including recent sales, rental history, suburb report and more.
