Perth high vacancy rate

Discussion in 'Loans & Mortgage Brokers' started by Jelsa2, 24th Apr, 2017.

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  1. Jelsa2

    Jelsa2 Well-Known Member

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    Hi All
    One of my properties has been vacant since Oct 2016. Had a few people interested but not resulted in sign ups. Of course this vacancy is eating into my equity pretty quickly. I hear about not contaminating the loan, but feel I will have to pay the loan myself as I don't want to fall into errears. Is this ok to so or does someone have any further advice. I do not have an offset account unfortunately as my broker didn't set this loan up that way even though I asked and when I realised it was too late.

    All I want to do is pay the interest on the loan until it is leased again.
    Thank you
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    You can pay the loan yourself no worries, just do so with your own funds not bank's.

    But why vacant so long? What area and what type of dwelling and how much? Probably better to get it tenanted to solve the issue rather than resorting to backup plans.
     
  3. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Just continue to make IO payments and you will be fine as your are fulfilling the contractual agreement with he lender when you do so and that is all they can expect.

    Im thinking you where using the rent to cover interest so just top up the account that the mortgage repayment comes from and you will be sweet.
     
  4. thatbum

    thatbum Well-Known Member

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    Vacant for 6 months??? Isn't it time to slash the asking price?
     
    flyhere, Perthguy and MTR like this.
  5. MTR

    MTR Well-Known Member

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    I have had to reduce rents recently, its tough market Perth just too much oversupply at the moment.

    No point leaving property vacant, I am assuming rent is too high and you need to meet the market...as thatbum stated slash rent.
     
  6. FrivolousPanda

    FrivolousPanda Well-Known Member

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    Echo MTR and thatbum's comments. Suggest you check what rent other properties are listed at on realestate.com.au/reiwa etc and then price accordingly to similar properties. It's pretty brutal out there at the moment.
     
    Perthguy likes this.
  7. Jelsa2

    Jelsa2 Well-Known Member

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    Thanks everyone, it has been dropped down heaps. Seems the issue is we have unsecured parking - being a carport and only room for 1 car. Property is in Belmont. We've also offered a weeks rent as well. Thanks for your advice, I really appreciate it.
     
  8. flyhere

    flyhere Well-Known Member

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    I remember I did quick renovation after my property manager told me the market was not good 1.5 years ago. You might need to get small renovation done make it look better?
     
  9. flyhere

    flyhere Well-Known Member

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    Lots of people dropped rents in Perth, I dropped heaps of my asking rents even after renovation, the good thing is I got tenants eventually, tenanted still better vacant for your pocket and bank account.
     
  10. LifesGood

    LifesGood Well-Known Member

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    If the property is well presented, well marketed and the agent is good then there's only one issue here....price.
     
  11. Sasim

    Sasim Well-Known Member

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    How does your ad present?

    Have you had professional photos done? I know you shouldn't have to for a rental but - it is what it is in Perth at the moment.
    My thought is photos are cheaper than a week of vacancy.

    Would you like to share the ad?
     
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I'd say you have to keep dropping. Is it better to have someone in at $150pw than nothing?
     
  13. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I would keep dropping till I get a tenant, its better then nothing at all.
     
  14. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Is it really that bad in Perth? just rental or Selling as well?
     
  15. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Not sure how good an indicator this site is www.ForcedSale.com.au , but lots of 'Mortgagee Sale' listing from WA and QLD.
     
  16. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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  17. Perthguy

    Perthguy Well-Known Member

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    Rentals are bad. I had a property go vacant just before Christmas. Tenants vacated at $340 pw. Re-leased at $280 pw.
     
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  18. LifesGood

    LifesGood Well-Known Member

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    I had one go from $410 down to $320pw.
     
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  19. Sasim

    Sasim Well-Known Member

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    $500/ week to $395/ week...... x 3 villas
    Its that bad :(
     
    Perthguy likes this.
  20. pjames

    pjames Well-Known Member

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    Perth is probably only half way through the fall, it will get much worse. I would seriously consider selling and counting your losses. Hang onto your money and wait a year until the market completely bottoms out then scoop up a bargain.