NSW Sydney rentals - what is the demand like for rentals around middle ring suburbs

I was wondering if some RE agent who lurks here could throw some light on this.

What is the demand for rentals (2br,3Br and 3Br+) around middle-ring suburbs around Sydney? How are they moving?

What kind of applicants do you usually see around these suburbs? What is/are the applicants capacity, household incomes, etc?

Any insight would be helpful

 

Too broad- you really need to define middle ring specifically and what property types you are referring to houses/townhouses/units. Sydney is a large market and quite segmented

 

Lakemba & West Ryde are the same distance from the city, both have stations. That's where the similarity end.

 

I am specifically interested in houses/townhouses something with a bit of backyard.

For suburbs,please see the attached image below. I have tried to capture all the suburbs that I think are desirable from our perspective.



Also Turramurra

 

You could rent a dog house in any of those places. The yield will be shocking though at this stage of the cycle. Maybe 2-2.5%

 

Agree with Biz. Expect a yield no better than 2.5%. On the plus side, your capital value will probably hold (not suffer falls) though.
For 1.3m though you'll typically be looking at something like a townhouse, unless you look at Rydalmere (and maybe Dundas?) which is at the very south-western edge of your image.

 

How quickly do properties with rent $40k ($800 pw) or $52K ($1000) move? If they are moving quickly, then what kind of tenants(demography,household incomes) can I expect. I prefer renting it out to families. If families are gobbling up rentals so quickly, then my next question is what is the average household income in Sydney if every tom/dick/harry family can afford $52K rent!!!

 

Remember how bad the yields are.... are you really thinking of buying something costing ~$1.8mill or more to get $800+ a week rent? Because that's what I'm afraid you are looking at.
You'll get better rental yields in apartments.

 

Ps. I can get those rents you mention, with a 1br apartment near the city. I do it via Airbnb. That is lot cheaper to buy. (700k now but they used to be cheaper).

 

Why do you want to rent to families? Families will thrash your house. Target DINKS. They are generally at work or enjoying a social life so they are not always home putting wear and tear on the property. Generally more disposable income too.

Either way you're crackers buying an ip in Sydney at the moment.

 

And if you still want to push ahead even after what's been written.... have a look at sqm research for vacancy rates. But it doesn't break the vacancies down to houses vs. apartments though IIRC.

 

Ps. @whacky... are you around here? Tomorrow night is a meetup at Wenty Leagues. Look in the meetups section.

 

I am not too concerned with yields as I am parking cash. DINKS would rarely rent a 3Br+2Bath+backyard even if they do they don't stick around. I prefer someone with family, they will likely stay longer (3+years minimum). Hence, my questions around demography and household incomes. My ideal tenant/family would have kids and a household income greater than 250K.

But I keep questioning myself, why would a household with 250k income rent something like this: 51 Bobbin Head Road Turramurra NSW 2074 - House for Rent #420904818 - realestate.com.au ??
95% of the time they would already have a mortgage.

 

90% of the apartments built in the last 5 years, in my opinion, are not of good quality. I could be wrong but that is I believe

 

I am not looking to extract those rents. Cursory browse on realestate.com.au suggests that is the ballpark figure for a type of house I am interested in (i.e. 3Br+2Bath+backyard)

 

Do you get consistent $700 pw via AirBnb?? What is your occupancy rate over a year?

 

Happy to take 2% yield.

Concerned about vacancy rate.

 

Airbnb income is more like $850 a week, with 90% occupancy because I don't really try to fill 1 night gaps between bookings. $700k is a fairly typical purchase price for that sort of property. (There's been recent capital growth. )

 

Professionals migrating to Australia from overseas. Ps. Its really hard to find a rental if you are a family with pets.

 

If I get an idea what moves and what does not move, I could possibly strike a good deal when buying.