What's happening with available rentals?

We haven't even listed our latest IP in Newcastle (settled 5 days ago but doing cleanup) and already there are two parties wanting to rent at top dollar ... friend on the mid-north coast is wanting to rent while they house build, hubby is a policeman, so pretty upright citizens , but there is absolutely nothing available.

Considering the ramping investors have been getting lately for buying everything - where are the vacant rentals?

 

Maybe the dynamics of Newcastle are different and it hasn’t had massive oversupply. In Sydney rents are falling significantly

 

I kinda disagree buynow. If it’s the right type of house for the area you will have massive demand in Sydney. Recently put up a 4-2-2(3 living areas)in the west in a family friendly area with mostly 3 bedders and and Reno to 4 bedders. Rush job only had it advertised 2 days before open, had upwards of 15 groups and 5 offers. Majority already renting in the area but needing more space. But I also kinda agree with you, many an investor bought poorly and will have to drop rents just to get somebody in, generic and low end built just to rent stuff in new estates will be a struggle.

 

I am guessing the rental shortage is caused by all those investors having been forced to sell all of their IPs due to their IO loans being forced onto P&I .

 

I know its only anecdotal..... but on our 4 Sydney IP's all the rents went up this year when we renewed the leases (all either 2 or 3br apartments).

 

Looking at the data, rents in the West are down 1% whilst Lower North Shore rents are down 9%. So obviously some
Very different dynamics in different markets.

Sydney rent prices drop by up to 9 per cent in year, Domain report shows

 

Same Perth
I would say 25% drop, with apartments taking a beating

Its a myth ..... rents do not always rise its dependent on supply

 

You may be surprised when leases expire as its dependent on how much stock is on the market at this time