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.