Looking for a rental, imagine seeing the sign “NO VACANCIES”.
Well that is what has happened at Harcourts APG this morning.
Richard Morgan, the Managing Director of Harcourts APG Real Estate was shocked but said that now is the perfect time for members of the South West to turn there home into an investment.
“The rental market has changed substantially over the last few years. I remember looking at the rental availability board in January 2017 with 59 properties available. Looking at our rentals board this morning, it was shocking to see NO RENTALS vacant. We have a few coming up in November and December but besides that there is nothing empty.”
“With people holding off buying a home to save larger deposits because of the banking changes and perhaps also waiting for certainty with their employment, it has meant more people are choosing to take temporary accommodation and this has placed pressure on the rental market. That along with all the previous uncertainly on investment property taxation, negative gearing and banks increasing rates on investment loans, some investors made the decision to step out of the market resulting in fewer investment properties available.”
The Government also haven’t increased their level of Social Housing either.
After talking to some individuals waiting for Government assisted housing, Mr Morgan said that he had discovered that the waiting list quoted to them was stated as being over 5 years.
“It is this combination of changes that have lead to this shortage of rental accommodation.”
Mr Morgan highlighted that Kerman Contracting were recently awarded the design and construction contract for the Greenbushes Lithium Mine and the Kemerton Lithium Processing plant. With construction quoted to start in the first quarter of 2020, along with the upcoming Bunbury Marina work, further substantial pressures will be placed on the rental market in the coming 3 to 6 months with an increase in employment to our direct region set to increase significantly.
With returns on funds in the bank being almost non-existent, if you are looking to purchase an investment property now could be the perfect time. With property values at an all-time low, bank lending rates now dropping and rents set to increase due to demand.
To find out more talk to Richard Morgan on (08) 9722 6666.