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decline in investor activity

Discussion in 'Property Market Economics' started by JDP1, 11th Sep, 2015.

  1. JDP1

    JDP1 Well-Known Member

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  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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

    Biz Well-Known Member

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

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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

    Biz Well-Known Member

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    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.
     
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  6. DanW

    DanW Well-Known Member

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    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
     
  7. Bullion Baron

    Bullion Baron Well-Known Member

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  8. D.T.

    D.T. Adelaide Property Manager Business Member

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

    turk Well-Known Member

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    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.
     
  10. Bullion Baron

    Bullion Baron Well-Known Member

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    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.
     
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  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    That's a separate topic altogether :)
     
  12. HUGH72

    HUGH72 Well-Known Member

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  13. D.T.

    D.T. Adelaide Property Manager Business Member

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

    jpcashflow Well-Known Member Business Member

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    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 :)
     
  15. See Change

    See Change Timing Lord Premium Member

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    Gee

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

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

    except Queensland :cool::D

    Cliff


     
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  16. Sonamic

    Sonamic Well-Known Member

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

    Redom Mortgage Broker Business Member

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    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.
     
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  18. JDP1

    JDP1 Well-Known Member

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

    Bran Well-Known Member

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    It didn't go unnoticed :) I think I even shared that graph on Facebook
     
  20. gman65

    gman65 Well-Known Member

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    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.