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Sydney Rental Market!

Discussion in 'The Pub' at netrider.net.au started by 2wheelsagain, Sep 24, 2008.

  1. Housing Minister David Borger said reports only 739 houses were available for rent in Sydney :shock:

    More from HERE

    Glad I'm not one of the poor buggers looking for a roof over my head.

  2. there was an article today about how the market has slowed a bit. it went further to blame it on landlords charging 10-20% extra on their property's rent just because they could. :/
  3. Correct. Many of the properties that are getting increases of +20% are greater than 5 years old (in terms of their mortgages) or free hold. Therefore riding the wave of landlords uping the price due to the accelerated market prices.

    I was looking at a few properties the other week (for business) and looked into some residential. The basics is that the property managers are telling owners to rent according to the properties 'assessed value', rather than what they paid for it.
    So you now have jimmy numbnuts who bought a sh*tbox 1 bedroom foreign fee paying student rat trap for 90k ten years ago, assessing the value at 400k and charging 300 a week in rent!
  4. We are also looking but outside Melbourne in Mornington.
    Current reant a good newish 3 beeder 2 bathroom and huge backyard for 260per week. have been here 4.5 years.
    Owner has now sold and we still cannot find anything half decent at about the 320 per week mark unless you want a unit (sorry townhouse) which is really a unit with an extra bedroom and buggerall garden for the littlies.

    Any rich bastard netriders wanna rent out a reasonable house for good money.

    We have even been knocked back for rentals, even with a squeaky clean record no defaults etc.

    Go figure!!

  5. Hey, I resemble that !

    ...and it`s now going up to 350$ a week BIATCH :twisted:
  6. These articles are fillers only. The reality is people switch between buying and renting depending on a number a factors. At the moment demand is high on rental properties. which means it's somewhere near it's peak and people will start buying soon.

    Rent was cheap for quite a while and mortgage repayments were high. Now rent is on the high side of "about right" only. Not particularly high.

    If you think your weekly out of pocket is too high then do something about it. Buy a house. they are only about 5-7 times average annual income at the moment, which is pretty good value. At the peak that were closer to 12.
  7. Okay, to say that vendors shouldn't aim for rents against their assessed value is unfair. The market only pays what the market can afford - note that this is irrespective of what % rent consumes of the household budget. It should be noted that against market value many vendors achieve an equivalent gross yield of 5-6% at absolute most on units & apartments, with houses considerably less. To top it off, at the moment they can't even claim to receive decent capital growth; REIA figures at -2.1% for the quarter and 1.8% only over the annum as at June 2008. It is inappropriate to ask vendors to reduce 'asking' rents in order to make it more affordable for you, infact, the real problem lies with the occupiers who willing pay these asking rents.

    This "10%-20%" crap that the article in SMH reported is hogwash - that Newtown agent is pulling numbers and facts out of his ass. I read it last night and nearly spat coffee all over my desk. He claims there's a disparity between vendor and occupier affordability. If there were a disparity between vendor's asking rents and occupier affordability then there would be vacancies. Sydney as at June according to the REIA's survey recorded a 1.1% vacancy, only a 0.1% shift since the beginning of the year. No one is arguing that rents aren't expensive, but as long as people can afford to and do pay these rents then that's market!

    To anyone who has read the SMH article - please disregard it. Those numbers are unsubstantiated and based on some poorly guided sentiment. I think there's a reason why this guy is claiming poor attendance to his rental properties and I believe it has nothing to do with the market. The article the OP posts describes a much more realistic view of the market at the moment.
  8. the problem is that renting, like petrol and basic foods are inelastic when it comes to demand. That is, a %'rise in the price of either product will result in a significantly smaller %'drop in demand.

    High rents = lower disposable income for tennants. Often resulting in high borrowing on credit cards and fewer luxury items.

    Aside from this, i agree that the SMH article posted the other day was rubbish. However, news like this can stimulate the market in certain ways that can be beneficial to some market players. Claiming that there is a sudden rise in vacancy will urge prospective tennants to go looking again which will increase tennant mobility and boost the throughput for the rental agency.
  9. Cam, no you can't rent my home. I rented in Mornington for about 3 years and in the end had to pay $380 per week for a very nice 3 bedroom home. Rentals are high in our area and the place I used to rent for $380 is now going for $460! Crikey glad I got a mortgage now. :grin:

    You could always try Tanti :bolt:

  10. :rofl:
  11. After I posted i hoped that you weren't from tanti! :oops: :LOL:
  12. None of what is happening to rental prices and rental availability is unexpected.

    It was always obvious that once the artificial growth in housing values flattened that owners would seek to maximize their income in ways other than capital growth.

    That means some owners selling properties and investing in other areas (we've sold 4 of our 6 rental houses in the last 2 years) and increasing rents on properties they keep in order to offset some of that lost capital gain.

    To expect rents not to increase until the return on investment is roughly on par with other well performing investments is unrealistic...