Packed out home opens. Extreme offers above the asking rate. Payments made months in advance. Welcome to Perth’s new rental reality, where a near-record low vacancy rate has led to a groundswell of demand for properties to lease.
REIWA’s latest data has revealed what most real estate agents and tenants had long presumed – we’re experiencing a rental shortage. The vacancy rate is now just 0.96 per cent, edging closer to the record-low of 0.8 per cent. Perth’s vacancy rate has only dropped below 40 per cent two other times in the last four decades!
So dire is the situation that experts are now using the two words that strike fear into the hearts of those looking for a place to live…
With almost all the rentals off the market, tenants are experiencing intense competition from fellow home hopefuls, upping the ante on applications with compelling cover letters and picture-perfect family photographs in a desperate bid to win over landlords.
In fact, reports are painting a picture of candidates going above and beyond to secure a place, some offering up to $50 per week over and above the asking price, or even pre-paying their repayments months in advance.
They want your property – and they’re willing to pay for it.
Investors ready to cash in on the crisis
If you’ve been thinking about investing in a property to lease but aren’t sure if it’s a good time to make your move, you’re not alone. Many investors have been sitting on their hands for months in ‘watch and see’ mode.
But consider this.
All this limited supply is pushing rental values up.
According to CoreLogic data, in the year to September (2020) Perth’s rental values grew from 4.6 per cent to 4.8 per cent, climbing above the national average in the process.
Low vacancy rates.
High rental values.
That’s the sort of dream combination that would see most investors drop their coffee in a crowded cafe to rush over and sign a building contract.
This is your wakeup call!
So far investors have been a little late to the party. But the reality is, Perth needs more rental properties – and pronto! It’s only a matter of time before the lure of cashing in on the crisis by helping to replenish stock levels will become too irresistible to ignore.
Already investor participation in WA’s property market has increased to 17 per cent lately. Now’s your chance to get in on the act and fill a huge hole in the market before all the other mum and dad investors in your street beat you to it.
Make it year to remember
With Christmas just around the corner, we’re potentially looking at a not-so-festive season where hopeful tenants are turned away from rentals.
They can’t afford to buy. But you can. So gift them the perfect place to live, with help from Pindan.
Our Indigo apartments are fully finished and move-in ready, meaning you could have your choice of the best candidates renting out your investment.
Check out Indigo’s available apartments here.
New Year, New Cashflow
Not quite ready to be a landlord? Why not build an investment property now, and reap the rewards later in 2021?
The Heights Kardinya has some excellent house and land packages that can be finished next year, ready for you to start renting out to hungry tenants.