decline in investor activity

Not too surprised to see these numbers in the report

http://www.domain.com.au/news/investor-activity-plunges-everywhere-except-queensland/

I suspect this trend will continue. Might halt the fall if RBA cuts once more.

 

I doubt it - is not rates that's the problem it's servicing.

 

Woohoo that means we'll be able to start jacking up rents in the not too distant future.

 

Why wait? The end user always ends up paying. Tenants pay for increased IRs, land tax, etc. just pass the costs down the line.

 

Not waiting, have put through 3 in the last couple of months. Just want to see vacancy rates falling again rather than rising like they are now in most areas like they are now. It means there is less investor activity and less to choose from for tenants = higher rents.

 

Problem is it takes time to flow through. Developers need to stop building etc from the reduced demand.

AFR is reporting nothing good for rents in most capital cities.

We have made small increases in Sydney but nothing interstate.

But you're right the cycle should return to equilibrium with rents bumping up alot more maybe 2018

 

Hahaha tell 'em they're dreamin'

http://m.yourinvestmentpropertymag.com.au/news/no-sign-of-rental-growth-picking-up-soon-205361.aspx

 

Seen a few inner ring suburbs here have the activity you mention , e.g. bidding going 100k over reserves etc

 

Quite possible, will take a while for The APRA changes to bite plus settlement time before any effects to rent are seen.

With these changes it doesn't take much common sense to know that historical figures are exactly that, historical.

 

I went to an open the other day, inner ring suburb, 50+ people there, will probably go $100k over indicative price/reserve. Not because the market is hot, but because the agent has massively under-quoted to attract more interest.

 

That's a separate topic altogether

 

Its highly location and suburb specific, rents are still creeping up in many cities and suburbs. And dropping in others.

 

Yup , my Perth rent is down 10% and my Adelaide ones are all getting $5 raises this year.

 

There has been allot of talk about the market being quiet, but its been very busy for me.. I am seeing more home owners buying and refinancing. Different market suits different people

 

Gee

Surprised no one picked up the most important aspect of this article

Investor activity plunges everywhere .........

except Queensland

Cliff

 

Yes you need to be Johnny on the spot with the cash up here at the moment. . . .

 

Hmm percentage of owner occs vs renters is still around that 70/30 ratio. Investors make up considerably more than 30% of the market, so i'm not so sure its as simple as 'costs have gone up, so rents can too'. It'll always be a supply and demand consideration. IMO rental inflation of 5-6% is a thing of the past, will track much closer to CPI with rising build levels and proportion of investor activity.

 

Yeah. That's no surprise. However I thought Adelaide and maybe perth would post better numbers than they did.

 

It didn't go unnoticed I think I even shared that graph on Facebook

 

I believe rents have always tracked CPI quite closely.. in fact they make up a component of it so probably no surprise.

As wage growth remains quite subdued and inflation stays relatively low for the forceable future (cause and effect pretty much) , not sure rents will rise massively.

In some areas there's probably going to be a short-term overhang in rentals due to all of the recent investment growth. Population growth has also been slowing the last 2 years (depending on region, but in general terms it has been down).

All of these factors will be downwards pressure on rent, probably above any beyond any fairly recent "APRA effect"

If lending remains restricted, you might see an up-tick in rents, but imho 2-3 years off at least.