Rental Market News Sept 25 – Oct 2

Jason Mudford General Manager OBrien Real Estate

“The good news keeps coming”

Hi Guys, it’s Jason Mudford from OBrien Real Estate with another edition of the Property News for 2020 where real estate information is on the house.

Attracting and keeping good tenants is one of the keys to being a successful property investor. Since COVID-19 this is even more important with the increase in vacancies which in turn is pushing rents down. If you’re a landlord in the fortunate position of having a good tenant who pays the rent on time and keeps your property in good order then now is the time to nurture that relationship. How you would do this is by making sure your property is well maintained, this might include things like maintaining gardens, repainting or replacing outdated appliances. Respond promptly to any repair requests and don’t completely rule out pets and consider allowing a tenant to put up artwork and if it’s a good tenant don’t be in a rush to increase the rent.

As reported by SQM research Sydney has the highest vacancy rate in the nation at 3.8% followed by Melbourne with a vacancy rate of 3%. Australia’s median rental has dropped 0.5% in three months, reversing almost two years of straight growth, according to June quarter data from CoreLogic. This is the largest quarterly drop since September 2018.

The good news this week:

  • Total household wealth rose by 1.5 per cent in the June quarter. In per capita terms, wealth rose to $433,833 per household.
  • In an attempt to kick start the economy the Federal government has announced it will wind back responsible lending laws, in an attempt to encourage lending and overhaul the current complex, costly and one-size-fits-all credit assessments.
  • After Sunday’s announcement private inspections are back, after 8 weeks of restrictions; buyers, sellers and renters can now physically inspect homes for sale and rent, And if your considering selling physical appraisals can also happen. The 5km rule doesn’t apply within Metro Melbourne. Photographers and marketing services supporting the industry can also inspect homes,
  • The weekly ANZ – Roy Morgan consumer confidence hits a 14-week high. Australia’s export sector has been a pillar of strength with record highs of iron ore exports.
  • Westpac’s bank execs are predicting an interest rate cut in November, such a move will make the interest rates exchange zero per cent if this happens no doubt this will encourage borrowing and investment.
  • A reduced Job keeper 2.0 starts next week, but a silver lining may come in next week’s Budget with the Federal government hinting it might bring forward the planned 2022 tax cuts, which means anyone earning $60,000 a year will pocket an extra $1,080 in their tax return.

Remember, If you’re considering selling don’t forget the “Sell with OBrien” competition, simply list your home with OBrien to go into a draw to win a Volkswagen Polo, an entertainment package or a furniture package. And lastly, If you have been enjoying the longer daylight hours that is about to extend further from Sunday when daylight savings begins.

That’s all for this week, I’m Jason Mudford and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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