How to cash in on the post-election property market

Tenants beware: Why it’s a landlord’s market

We’re all starting to feel the pinch of the rising cost of living in our daily lives, and there’s no doubt this is impacting the property market. As costs increase, landlords are seizing this opportunity to increase their rents, which is putting even more pressure on the current rental crisis.

While there has been a lot of focus on house price affordability, rental affordability is going to become a big issue – and therefore, an even bigger opportunity for investors. In fact, some predict that over a 5-year period, we’ll achieve 5%+ p.a. rental growth.

During this ‘rental rush’, if there was ever to take the leap from tenant to owner, it’s now.

No vacancy! The hottest property news of 2022

  • Rents in units and apartments are rising faster than house rents, especially in Sydney and Melbourne (Source: Core Logic)
  • The number of total rental listings fell a further -11.6% over the month of April 2022. We are now down 26.5% year-on-year.
  • With the return of international students, vacancy rates fell to a record low of 1% nationwide in March 2022
  • Many tenants have also moved back to the inner cities where apartment rents were cheaper than houses, causing a further resurgence in rental demand

Limited Supply and More Demand Demand Demand

Now that Australia has opened its borders, we’re bracing ourselves for another migration BOOM, with up to 235,000 migrants p.a. expected through to 2031, all needing a place to live.

But where? The rising cost of living and the post-pandemic supply chain has resulted in a nationwide construction crisis. The supply of new houses, townhouses and apartments nationally are expected to be impacted by rising construction costs – with many projects no longer viable as a result. This will cause a further reduction in supply in 2022/23.

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