Rental prices Perth

You did well to find a tenant! What area is that?

 

Hamersley. Funny thing is the people I'm leasing it to is someone who I use to go to primary school with.

 

Good work! You are lucky to get away with a $50 drop in this market. I'm looking at $90 to $100. I know a lot of other people are too. I wonder when rental prices will start to pick up again? I suspect not for a while.

 

Yeah their were only 8 properties for rent in hamersley and most were duplexes advertising for the same price as me. I don't see rents going back up this year.

I wouldn't want to be advertising in Girrawheen or Yokine at the moment, so many listings.

 

Perth rental vacancies spike as property market continues to struggle

http://www.abc.net.au/news/2015-06-25/rental-vacancies-spike-in-perth-property-market/6572702

I went to three home opens in the area yesterday. First property had no one turn up, second property had one group through, third property had two groups through. It's certainly dead.

 

@Perthguy

my IP was listed for $395 p.w... 3 weeks no movement.. dropped to $350
Signed the lease yesterday $ 340 with pet

very soft rental market!

 

Im in Perth at the moment updating our Mt Lawley flat after 6 weeks on the rental list and no bites. Hopefully the new kitchen and flooring will help, but I'm ready to suck it up and take a hit on the rent. I just hope it isn't too bigger hit As the property management fees are already a killer!
We will be doing a re-launch too Perthguy. All the best, fingers crossed for both of us

 

I guess I've been lucky this year.

- 3 x 1 in Forrestfield was empty for two weeks in May and first two home opens not one person showed up. Took about 5 home opens and eventually had one applicant which I signed at $400 down from $410.
- New 2x1 Granny Flat behind main house rented straight away for $300 in May.
- Aubin Grove 4x2 re-let with no change at $520 in March.
- Glendalough 3x1 townhouse which I thought would dive for sure but tenants happy to resign at same rate $520 also in July.

All on 12 month leases.

 

That's great! Well done. At this point I am looking at a $100 reduction in rent and no guarantee of finding a tenant.

 

I reckon it's gunna get allot worse for us over here, not only resources, lack of tourism promotion, employment, and all the new properties about to explode onto the market.

New 2017 pensioner asset tests could = many selling off flooding the market with established IP's now (= lowering prices) and stashing cash under the mattress so they still get a pension, I'm already seeing this.

Still get 10k from Fed but WA 3k FHOG being scrapped on established, I know I'd want 3k for nothing and a brand new place = even more new builds/estates, away from facilities, but Who's gunna buy all the established?

I'm a metro truckie, all over the place Nth & Sth of the river, apart from all those new highrises around Perth/Burswood there's heaps and heaps of new estates being setup all over the place, Byford has about 4 on the go at the moment, even a HJ's is being built there. Go for a drive along Armadale Rd between Tonkin and the Fwy, all connecting to Cockburn (yes that's the name of the suburb eastern staters). Then we have the upcoming extension to the Mitchell, Alkimos/Marmion up through to Two Rock has exploded.

Good thing is there's always gunna be renters, guess some of us are gunna have to fight over them though to stay afloat = lower rents.

 

I think you are right we just went out to dinner in the CBD barely anyone around not a great sign. I really don't know why they don't push the tourism is it beautiful here and the weather is devine, just need a Sea World or something . We discussed over dinner whether we should sell as we feel that it is going to get worst here, it isn't our usual plan and I'm not sure we would turn a profit. We will give the rental list another go and take it from there. Low IR are a blessing in this current climate.

 

Whilst the weather is a bit crap this weekend, personally with all the continual media bashing re violence, theft (my house was broken into 2 weeks ago), meth (not enough being done about this) etc many Sandgropers would be considering other options away from the CBD, myself and kids included.

O'Callaghan/Police can only do so much with limited re$ource$ on the ground, spread across ever expanding population/development of a state land mass equivalent to all eastern states combined who have four individual fundings (incl GST) compared to our one.
Plus when they do apprehend/charge someone the courts give them a slap on the wrist, what did the offender learn, kinda makes the job of a cop frustrating however all our prisons are overcrowded and it costs allot to keep them in there, should we allocate state budget to build more or focus on the cause and use those funds to improve honest state citizens lives?
IMO better structured early education (rather than teaching stuff they likely won't need) and much tougher/fearful minimum offense/conviction penalties for a start.

I'm sure the tourism dept, MacTiernan and many others frustratingly question the same, State Govs (not just Libs) have predominately focused/relied on resource relations/income, and expenditure to metropolitan capital infrastructure (roads, hospitals, quay, stadium etc) which whilst great for metro employment and their personal expenditure to retail and housing, the balls been dropped regarding much else to support the states revenue (other than increase service fees/tax), including tourism.

However, sure we have a beautiful coastline, ok city (when not under construction) but apart from the Kimberleys what do we have other states don't to temp tourists to this side of the country when everything is so damn expensive compared to the eastern states, flights, accommodation, food & beverage, entertainment (what there is of it). Its cheaper for us to go to Asia for a week than our own backyard, cheaper to fly east than our own north west.

I agree then some, even if only for locals, Adventure World is crap in comparison, I'm originally from over east, lived in Surfers for 4yrs, worked at Sea World & Dreamworld, Hillarys would be a great spot with better transport infrastructure.
However if they shifted all the freight port facilities/requirements out of Freo, moved it down to Naval Base etc, therefore no longer a requirement for Roe8, Freo would be better.

I reckon it will but unlike shares in a company personal property isn't going to do a Bondy to you unless you allow it, prices will bounce back. If you bought right (land/location val), not over committed, can afford the gap payment with lower rents, I'd hold. However the flip-side is sell now if you can get a good price, if drop looks like bottoming in 12-24mths pickup something better/cheaper and watch it grow, its a risk decision like playing the share market or gambling.

Amen to that! unlike the 18+% rescission we had to have, that would wipe many of us out.

 

Jeez, some pretty pessimistic people on here. Am I the only person that thinks rents and vacancies will probably stabilise towards the end of the year?

 

Investors are paying the price for what they did a couple of years ago. This may not apply to all Perth areas, but I what saw in low income areas.

Renters were paying around $300 a few years ago. Then came the rental shortage and rents skyrocketed. Renters were desperate to get a place, so kept offering more to get a house. $ 300 house went to $400-440. Wages didn't move much. So people started to struggle. Think of a household earning $850 week paying $440 a week in rent whereas they were only paying 320 an year ago...

So they have to find other ways to survive. Lots of people moved in with their family or even friends. (Dual households) Started to sublet rooms. Lots of sleep-outs/rumpus rooms were created. Then came the granny flats. New estates. Mining softened. Renters are not renewing leases.

With even more granny flats and new houses being built, things could even get worse in short term. But with all the domestic issues with dual house holders and subletting, sooner or later people will move out and new households will be created.

With investors finding it harder to find tenants, they may start selling. More stock into the market and prices may fall by another 10% ? Possible. Perth is into buyers market territory. Time to grab bargains, I reckon. Ah, there are markets within markets and I shouldn't generalize. Interesting times though.

 

Likely not and its great to be positive, however you have to be mindful.

What do you foresee happening to stabilise in 6mths?

New IP's are still being completed and coming on to the market encouraged by demand of the resource boom yrs ago. (glad I didn't buy up north or sign anything 2yrs ago that hasn't completed yet)

Downturn in resource supply seen BHP & Rio fight it out at near cost forcing Fortescue to restructure dismissing an entire shift crew, closing many of the smaller operators we never hear about who couldn't compete, including ancillary support contractors and their subbies = loss of many jobs, auctioning of equipment for whatever they can get to pay debt, "if" receivers haven't taken over.

Share market is down effecting most resources, Ellendale Diamond mine went into voluntary receivership this week, another couple of hundred out of work, still haven't received wages for June.

Those unlucky who migrated for FiFo who've been renters are now returning to their origins to be closer to families/friends. Less incentive now for those that were considering moving to WA hopeful of the Big bucks they'd heard about.

* State budget plans were structured on high value royalty income with little consideration to anything else incl tourism, now it barley exists, so how does anything major get funded to generate local employment/spending? (apart from increasing our domestic service costs, state pressure on local council rates will be interesting)
Hey Hang-on!? we stuffed up but lets blame and harass the Fed re GST.

Thanks to the Fed for kinda giving us a better GST return with a 500m hand over which is allocated to roads (rather than needed public transport) keeping many of the guys/gals currently working Tonkin and Roe/Kwinana busy for awhile, what then*

Much is needed in rail/park & ride however Aubin Grove train station has been pushed back to 2017, while they continue to duck & dive an election promises re Ellenbrook and Mirrabooka.

Hospitals complete however were would all the subbies have gone (some still waiting to be paid or broke, likewise the Kal goal contractors) bit here and a bit there if their lucky.

What happens to workers after the quay and stadium are completed, wont all be required at Aubin*

Whilst it doesn't look like it housing construction demand is slowing, Alcock's already laid guys off, others are also.

Whilst retail is currently steady due to 20k right off it will slow which domino's supply chain, employers will have to start considering numbers = higher unemployment figures (Fed cost issue), lower rents to accommodate, survival of the fittest...
Even social service providers like the Salvo's are getting hit with cuts now.
Food supply will be the necessity/strongest.

Sorry to sound all doom & gloom but that's just "some" of the facts and something to take into consideration for the next few years at least.
Next State elections gunna be interesting (2017), as usual lots of toilet paper required for the bottom lips of pollies.

 

You would be pessimistic too if you just wiped $100 a week off your asking rent.

 

+1 Westoz. Fully agree, things aren't looking too flash at the moment in the resources sector.
I have been working in the mines for about 10 years now, and fortunately for me I am not a big spender, so I paid off my PPOR a few years back, and have bought an IP to diversify with my share portfolio. Meanwhile I have been shaking my head at the other blokes up north with their flash cars, boats, and big debts saying this aint gonna last forever man!
I'm not earning the big bucks anymore from up north either, had my wage cut in half after I paid off my PPOR, wanted an easier lifestyle roster, now week on week off, from 160k down to 80k, but life is good! I only work 5 months of the year!

 

Saddly this is the case in Melbourne too. The courts become so immune to crime that they can justify pitiful sentences, thank god that they removed 'suspended sentences' as that was just the biggest joke!! Ice is an epidemic that is everywhere along with domestic violence and usually the 2 combined make emergency services workers resources so stretched. You are right early intervention is the key.

I'm going to get an appraisal to help with decision making. We could sell make a small profit, then buy in 18- 24 months time. I'm happy with the location one street back from Beaufort St, there is no real land thou as it is a unit but very low BCs. I need to negotiate the PM fees, paying double the price of Melbourne with half the service!!

 

Yes like most general things over here, even a coffee.
Haven't used them myself however haven't heard any negative, would give them a shot if I ever decided not to self manage, 10% flat fee - http://www.defreitasryan.com.au/choose-de-freitas-ryan-lease-manage-residential-property/

 

Thanks I had a look at their website I'm going to try and get mine to match their deal and if not I will give them a call. Cheers