Category: Market Update

Categories
Market Update

The rental market is reaching crisis point and it is going to impact all of us.

The Haus Exchange Rasmus and Ricki Nielsen

According to the media, the rental market is hitting crisis point and for once, I agree. With a record low vacancy rate at 1.3%, it is the lowest vacancy rate in 12 years and in another month it is likely to be less than 1%. This means that it is near impossible to find a rental as a tenant and the market is experiencing increasing pressure from Sandgropers returning home.

Landlords
Reports from property managers indicate that the market rental rate has increased by 15% in some suburbs which is the first good news for landlords in years but the WA Government have put in COVID legislation so periodic leases are treated as fixed term leases until 28 March 2021. It also means that terminating a lease is near impossible.

What if I want to sell my investment property
When selling an investment property, the best option is to appeal to investors and owner occupiers alike. Although the COVID-19 restrictions make it more difficult for landlords to sell their investments, it is still possible if you use the right approach.

In particular, it is possible to sell the property with vacant possession as long as:
1) the tenant is on a periodic lease at the time when the notice to terminate is given; and
2) the contract of sale stipulates that seller is required to provide vacant possession at settlement.

The notice period is 30 days so settlement should be no less than 35 days allowing for time for the property manager to serve the notice in writing.

The housing market
Stock levels are the lowest that I can recall in years and properties are selling very quickly with prices rising in in some suburbs. There is speculation that we will see price increases across the board in the next 12 months but the increases will be marginal and it also depends on what restrictions that the Government will continue to place on the market in response to COVID-19.

What is going to happen before Christmas?
The net migration to WA and the low interest rates means that more tenants are becoming first home buyers which will increase demand. In a normal scenario, the outcome is higher prices but I am expecting the Perth property market to be steady with some suburbs going up. If the last 2 months is anything to go past, you can expect to see a lot of activity in the market.

On a personal level, The Haus Concierge Service is super busy and we are just keeping up with the demand for our staging and styling service that is complimentary to all of our clients and is generating great results but we did manage to take a mini break and visit Busselton with the kids this last week of the school holidays.

How is your property value tracking in this shifting market?

Why guess when you can just ask us 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.

About Rasmus

Categories
Market Update

My take on the Perth Property Market – August 2020

I really want to share with you what’s going on in the Perth Property Market right now (August 2020) because it’s absolutely bonkers. Watch the video below or get the detailed summary below.

Why is the Perth Property Market bonkers?

Properties in close proximity to the CBD, the river or the ocean are in hot demand. In the past couple of months we have experienced lots of enquiries and not many properties on the market. Usually the winter months are slow but this year has been anything but slow. Who would have thought??

Some suburbs have even experienced a slight increase in prices and there are also a few suburbs where properties are selling in less than 2 weeks including quite a few of our listings!

The recent lock-down has made many buyers realise that their current living arrangement is no longer suitable and everyone is out looking for something new. However, if you are looking at apartments and some units with long term leases in place, it is a different story as there are not that many investors out there looking to buy right now.

The Rental Market
There is a current freeze on rental prices which means that landlords can’t increase the existing rent to existing tenants. It is my understanding this is likely to come to an end in October. Speaking to property managers, they are all experiencing low vacancy rates and it is therefore likely that rental prices will increase quite significantly when the rental freeze expires which will be great news for landlords. It may even get to the point where more tenants choose to become home owners again which will have a flow on effect and I suspect that this is happening already.

What to expect?
My previous fear was that we were going to see a massive drop in activity and prices come October onwards when Job Keeper and the current mortgage relief was due to end. However, as the Covid 19 support situation has now been extended, it is more likely that this will be a smaller decline only.

However, many home owners are still holding off listing their property for sale which is usually the case in July and August. In the past we have seen a surge of new properties coming to market in late September and October which makes sense as properties and gardens present very well during this time. However, if there is not much competition with other similar properties for sale in your area then now is a great time to pull the trigger as more buyers will be competing for your home. If you have less competition, then you are more likely to get a premium price.

One such example is a property that was listed for sale only last week. This was a former investment property which we fully styled and staged for sale on a complimentary basis like we do for all of our clients.

On Saturday at the first home open, 20 groups came through with 5 offers now received and the property will undoubtedly sell this week during our online auction which will be held tomorrow night. If you would like to watch this from the comfort of your home, please click on the link here.

How is your property value tracking in this shifting market?

Why guess when you can just ask us 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.

About Rasmus

Categories
Market Update

Are you a Perth landlord?

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.

Categories
Market Update

Why the Perth Property Market is going bonkers.

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.