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Perth Rental Market: Myths And Realities

Perth's rental market remains competitive. Let's look back at what has happened in the first quarter, and consider what we can expect next.

Rising rents

Rents in Perth continued to rise in the March quarter, increasing 4.3% to reach $480. This is $10 below the all-time high rent recorded in 2013. Domain reports that median house prices are now 11.6% higher than they were 12 months ago. Meanwhile, rents for units have hit their highest point since 2014. They rose by 2.6% over the quarter and 8.1% over the last year.

While the latest report on Perth’s rental market might seem like good news for landlords over tenants, it’s worth noting that Perth rents are still some of the most affordable in Australia. Melbourne and Adelaide are the only capital cities where median house and unit rents are lower. Meanwhile, according to CoreLogic, Orelia in southern Perth is home to Australia’s most affordable median rental units at $268 per week.

Historic low vacancy rates

According to Domain, the national vacancy rate declined to its lowest on record in March. The Perth vacancy rate was 0.7% in the December 2021 quarter and fell to 0.6% in January, only to fall again to 0.5% – a new record low – in February. In March, Perth vacancy rates remained historically low at 0.5%.

Rental home demand greater than supply

The current vacancy rate for rental homes in Perth indicates a strong demand for rental properties. According to reports, the number of available rental properties has decreased by 19% over the past year. At the same time, there has been an increase in the number of people looking for housing in Perth since the city's borders were opened.

Healthy yields

According to CoreLogic, Perth currently offers the second-highest yields in the country after Darwin. Perth yields are at 4.34%, down six basis points from 4.40% a year ago following 10.6% annual housing growth and 6.6% annual rental growth. This is the smallest growth rate of all the Australian capital cities.

Positive investment conditions

Investing in Perth property is a good idea. Compared with other Australian markets, capital gains on Perth property are high, house prices are affordable and vacancy rates are low. Despite a 21.6% rise in home values since the start of the pandemic—according to REIWA—CoreLogic reports that WA remains the most affordable housing market in the country.

What can we expect next?

The trends we are seeing in the rental market now—strong demand, slow supply of new homes, low vacancy rates, and rising rents—are expected to continue. This means that it is more important than ever to improve your chances of securing a lease by following tips and advice from real estate experts.

With WA's state unemployment rate sitting below 4% and jobs growth rising faster than in any Australian state or territory–at 6% per annum–migrants will continue to move to Perth, increasing demand for rental housing, which will drive vacancy rates down and rents up.

The state hopes that more skilled workers will be attracted to the state to help complete construction and create new housing. The state also hopes that more property investors will take advantage of the excellent opportunities currently presented by Perth’s market conditions, thereby adding more rental stock to the market.

If you are looking to buy a property in Perth, searching for a property management team to manage your investment property, or searching for new accommodation, contact your local established property managers.

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Buyers | Tips for Securing a Northern Beaches Property in 2022

The Upper Northern Beaches real estate market remains in high demand. In 2021 we saw an abundance of buyers flood in, fierce competition, and a sharp rise in prices. This year as we approach autumn, we have seen more stock enter the market and the market is becoming more normalised. The good news for buyers is that with more available properties, the chances are better that they will find a property that suits their needs.

In a hot real estate market, it can be difficult for homeowners to sell and buy back in. Now that the market is more balanced, we are seeing downsizers, upsizers and empty nesters who were previously hesitant to make a change, now ready to come to market.

It's important for buyers to consider sound judgment, understanding that the market hasn't pulled back but that it is still strong. Although the market is normalising (meaning it's becoming more stable) now is a good time to buy and sell as there is less volatility, which means less risk and less risk can make for less stress and anxiety through the buying and selling experience.

Buying a property is never completely devoid of stress and anxiety, but there are ways to take control back. It can be discouraging at times, but it's important to position yourself so that when your dream home becomes available, you can move swiftly and put your best foot forward with the confidence you need to secure your new property.

If you're looking to buy a property on the Upper Northern Beaches, here are some tips that may help.

1. Make yourself known to the agent 

If you are interested in a particular property, let your agent know. Not all agents communicate with equal levels of efficiency. If they don't know you are keen on the property, they may leave you out of the loop and be negotiating a sale with other more vocal buyers.

2. Know your market

Research the market and be prepared. Stay up to date with what comparable properties are selling for. Every quarter, the market moves in different directions, which means that the price a property sold for six months ago, or even a few weeks ago, may not be what it would sell for today.

It's important to do your research both online and on the ground. Seeing as many properties in person as possible will help you to identify the non-negotiables that are important to you, as well as things you may be willing to compromise on. This will give you a greater understanding of what qualities increase the price and decrease the price of a property in the Upper Northern Beaches, for example understanding location, aspect, quality of finish, floor plan, neighbourhood and access.

3. Have your finances ready to go

As mentioned above, properties are selling quickly, so there is no time for delays or hold-ups when you find something you want to buy. Make sure all your finances are in order before you start your search so that you can purchase what you want.

4. Turn up at auction to bid

Many properties are now being sold by auction, so it's good to be auction-ready. Many buyers worry about the auction process, but it tends to be the most transparent and fair way to buy a property. You can see who else is competing for the property, how much they're willing to pay, and everyone who has registered is given an equal chance to bid.

Before you attend an auction, meet with the real estate agent and be clear about your intentions. You want the agent to work alongside you to help you buy the property.

5. Register for off-market opportunities

Many great properties are snapped up before they even reach the market. It is advisable to register with your agent for off-market opportunities so that you can be kept informed of these opportunities as they arise.

If you try your best and still miss out on a property, don't worry. There are always more properties on the market, and these trends do go in cycles—seller's markets don't last forever. They'll eventually cycle back into buyer's markets.

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How to get the most out of your real estate agent

When you're in the market for a new home, don't forget to enlist the help of a real estate agent.

Real estate agents are involved in one of the largest financial transactions of your life, and they are pivotal in making sure you get the highest possible price for your property. To get the most out of them, you need to work at it—make sure they're doing everything they said they would while giving them space to do their thing.

The first step in finding a new home is to choose the right real estate agent.

Finding the right agent

Your agent should be your trusted advisor and help you achieve your property goals. You should have an open relationship built on mutual trust and respect. Your agent should be honest, professional, approachable, and a good communicator.

Once you've hired an agent, make sure that they're doing their job. Here's how:

Make sure you get an accurate valuation.

It is vital to get an accurate valuation on your property, as it will ensure you get the highest possible price in the shortest timeframe. Online valuation tools and websites are helpful for general guidance, but the initial appraisal you get from your real estate agent is your best guide on an asking price. If interest in your property is slow, your agent should tell you if they think the price is too high and recommend a more realistic one.

Establish ground rules and expectations.

To ensure a good working relationship with your agent, be sure to establish some ground rules and expectations from the get-go. For example, how often you'd like to be updated (or not). That'll save you time and energy in the long run. The best real estate agents always book appointments ahead of time, call ahead, and allow you time to get your home ready for viewing. 

Listen to your real estate agent's advice.

If you hire a top-performing agent, which should be your goal, then you should give the agent's advice serious consideration. If the agent says your asking price is too high or that you need to invest in another marketing channel, take the time to think about his or her opinion. Based on his or her expertise and experience in the local market, he or she is likely to be right. If you persist in ignoring the agent's advice, you may break your mutual understanding and trust.

Communicating with your real estate agent

It's important to stay in touch with your agent, especially when you're selling a home. If you haven't heard from them in a while, ask them about it. They should be keeping you updated every time someone makes an offer on your home. The offer may be lower than your selling price, but ultimately it's up to you to decide whether or not it's acceptable.

Agree on a marketing strategy for your property

It is important for a property to be marketed properly, and an agent's marketing strategy proposal should list all the details you need to focus on. These include the photos used, the property description, and how the property will be marketed to potential buyers. To make sure your property sells quickly, you need to ensure your agent's strategy is thorough and detailed so that it attracts as much attention as possible. – 

Can you switch agents?

If you're not getting the results you want from your agent, you can cancel your listing agreement. Just make sure that you have followed all the proper steps in doing so.

Once you've done that, you can begin searching for a new real agent in your area and get the property sold.

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Finding And Working With A Property Manager In Melbourne, Victoria

When you're looking for a property manager to help you rent out your Melbourne, Victoria home, there are a lot of things to consider. Finding the right person for the job is a big deal—you'll be entrusting them with your most valuable asset: your home.

Property managers in Melbourne are a great resource for anyone who owns the property and is looking to rent it out. With so many people in the area and new businesses popping up all over, having a property manager can help you find tenants and keep them happy.

The best way to find a property manager in Melbourne is through referrals from friends or family members who have worked with them before. You should also check out reviews online before deciding who will manage your properties since there are many different types out there who may not have experience working with someone like yourself who owns multiple rentals at once!

Property managers will help you find renters, negotiate leases, collect rent and payments, handle maintenance issues that come up during the rental period, and more. They'll also be able to keep track of all of your properties from one central location.

Property managers in Melbourne have access to databases that list potential tenants who may be interested in renting your property. They can help you, potential screen clients, based on criteria you provide them with, such as credit score or income level, so that you don't end up with someone who isn't going to pay on time or take care of the place properly.

Property managers also know how much they should charge for their services based on what other similar companies charge in the area, so there's no need to worry about whether or not they're charging too much or too little—they'll just tell you what they charge, so there's no guesswork involved!

Conclusion The best way to find a great property manager in Melbourne is to do your research. Look over the profiles of different property managers and see if they have similar qualifications or experience that you're looking for. If you need help finding the right property manager, Melbourne has a lot of them. One of these could be a great fit for you!

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Features That Determine The Market Value Of A West Australian Home

Faced with the question of what is my home worth? (and all the associated scary questions that go with it!) you can start by asking yourself one question: what factors or features determine the market value of a West Australian home? In this article, we'll take a look at what those determinants are and how they impact your local market.

How is the market value of home established?

The easiest way is to look at the land value and the building value of a house. Land value is easy to calculate because it is straightforward, but estimating building values requires taking into account features like the quality of structure and size—which can vary considerably from home to home within the same street or suburb. As a general rule, an experienced real estate agent will consider contemporary attitudes toward Western Australian homes when determining property values.

Bedrooms

Many properties are still described by the number of bedrooms that they have. Over the last 50 years, the average home has gained one more bedroom, but smaller households now exist. Regardless of this reduction in household size, people want larger homes, and apartments with three or four bedrooms are preferred. Extra bedrooms allow a greater range of lifestyle flexibility—they can be converted into home offices or guest rooms.

Bathrooms

The number of bathrooms and toilets is almost as important as the number of bedrooms when it comes to buyer interest. Buyers like extra bathrooms and ensuites because they offer convenience and privacy, especially in shared homes.

Storage

Storage space is an often-overlooked factor that can influence the value of a home. We are living in smaller households but accumulating more possessions, and homes with ample storage space are likely to be more valued than those without.

Theatre room

Your entertainment space is no longer limited to the 'games room'. Home theatres have become increasingly popular with buyers due to their big-screen televisions and surround sound units.

Kitchen

Australia's love for cooking programs is an indication of how important the kitchen has become in many Australian homes. Home buyers are increasingly looking for kitchens with well-designed, functional, and spacious cupboards and quality appliances.

Alfresco area

The warm climate in Western Australia practically demands the use of outdoor living spaces. Whether you're looking for an outdoor social space with a modest outdoor setting, a classy barbecue area with a cedar-paneled patio, or an integrated indoor/outdoor entertainment space, more and more Western Australian home buyers are considering outdoor living spaces a necessity.

Western Australians tend to rely heavily on their cars for transport, so having secure car accommodation (particularly a double garage) is important to home buyers. While nice to have, this feature is not a deal-breaker and is generally considered less important than other features in comparison. 

Determining your home's value doesn't have to be a hard, stressful process. With the help of a good realtor, you'll know exactly what your home is worth and can avoid making mistakes that could cost you thousands!

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Should A Rental Property Be Managed By The Same Realtor As The Purchase?

It is a common misconception that when you buy an investment property, the same agency that sold you the house needs to manage it for you.

3 Reasons to Contact Other Property Managers

1. You didn't choose who sold you the home.

You didn't choose which real estate agency was listing the property you just bought; the previous owner did. When you buy a property, it's common for the real estate agent who handled its sale to be the one managing it for you. However, there are other options available that might be worth considering.

2.  You will be dealing with a different person than the one you know.

Sales agents you have worked with in the past may not be available to help you with ongoing property management. It is best to start fresh with a new person or ever-changing team that can provide you with the help you need.

3. A successful career in sales does not guarantee success as a property manager.

The agency's expertise in sales does not translate into an ability to maximise rental returns, manage rental arrears, arrange timely and reasonable maintenance, and so on. These are specialist areas untouched by a sales agent.

How can you tell which property management company is right for you?

When you sell a home, it's usually done by the same agency that sold it to you, but this isn't always the best option. It's important to look at the pros and cons of different businesses offering this service before you decide which one to choose.

When looking for a property management company, consider businesses that have a broad range of services.

Research the business to see how much it is committed to providing free advice and education.

Give each property management company you have shortlisted a call.

Ask how long the property manager has been working in the real estate industry.

Think about what the business offers you as an investor.

Don't base your decision on fees alone.

In addition, we recommend that you check out reviews on Facebook and Google. This can be very helpful, as it provides independent views from both landlords and tenants, not from the agency itself.

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Choosing An Investment Location

Deciding to buy an investment property is a big decision. And finding the right location for your property can be crucial to your success.

Why is location important for investment?

The location you choose for your investment may determine the type of tenants you get. If you buy a rental property that is popular with tenants, you'll likely see high rental yields for the foreseeable future. If you opt to buy vacant land, you won't earn any rental income from it, but it may increase in value in the future as more people want to live in the area.

How to choose a location for an investment property?

To choose where to buy your investment property, consider these tips:

When you buy in an area that you know, you will find it easier to make a good decision about rent. This is because you know the types of people living nearby and can assess how well your rental property will suit them. If you are planning to buy interstate, we recommend hiring a buyer's agent.

Prepare your team: Contact a real estate agent in the area you're interested in investing. It's helpful to go with a local agent since he or she will have intimate knowledge of the area. Talk to the real estate agent to find out what people like about the property and its location. You should even have an accountant on your team to give you tax advice.

Put yourself in your tenants' shoes when choosing your rental property. If the goal of your investment property is to earn a high rental income and minimise vacancy, then opt for locations that tenants prefer.

Stay updated on any infrastructure improvements in the area. This might determine the type of tenants and whether or not the space is practical for the future. Get in touch with your local council to find out if there are any planned developmental projects. Ask your neighbors how they feel about those projects.

Tenants are interested in a number of features, including garages, pools, etc. Landlords in Melbourne pay careful attention to the transportation needs of tenants; those in Perth and Adelaide need not worry about good public transport. Tenants in both cities are concerned with having a garage for their cars.

Consider the property's upkeep and maintenance costs. An older place will likely need some renovations.

Check the vacancy rate for your property. It is good to invest in areas where vacancy rates are low as it means that your property will not be empty for long between tenants. A location with high vacancy rates makes it harder to sell it in the future. Vacancy rates can be found online on Corelogic and other websites.

When purchasing a property, check the recent sales figures for the location first. This will give you an idea of how the property is performing online. You can also find information from real estate agents and buyer agents to determine the average prices of the surrounding areas. If there are huge margins of differences within the area, think twice before investing. If the prices are comparable, then it's a safer bet.

You should always have a pest and building inspection done by an independent inspector. An independent report will tell you about your property's current condition.

Proximity to amenities like shopping centers, schools, gyms, etc., can make a difference in how much demand there is for a rental property.

When deciding on your investment strategy, decide if you want to invest in properties that will appreciate in value or if you want to make money from their rental income. If you're looking to earn from rental yields, make sure the location of your property is one that renters prefer.

Ultimately, your decision on what you want to do with your investment will be your own. But as for profitability and future growth potential, it's hard to argue that investment property in a popular rental area is likely to give you the greatest return on your money.

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How Property Managers Find New Tenants

When it comes to residential property management, your number one priority is finding the perfect tenant for your vacancy. Holding onto a rental unit is an expensive undertaking and wasting time on a bad applicant inevitably results in sliding profits. Whether you manage your own properties or through a third party, there will always be procedures in place to ensure your best interests are protected. I'd like to take a look at some of these steps and talk about what your property management professional will have done before you begin the selection process with applicants.

Organizing real estate photography - When it comes to real estate photography, most people think of a professional photographer taking pictures of the outside and inside of their rental property. This can make your property stand out from the competition, which in turn can lead to more demand for your rental properties. 

Walkthrough videos and floorplans - Not everyone will be able to view your property in person, so providing potential tenants with walkthrough videos and floor plans online allows them a glimpse of the property at their own convenience. Some property management companies may even offer 3D virtual inspections, which allow tenants to step foot into and explore the property from the comfort of their own homes. Prospective tenants can choose when they want to view the property instead of you having to arrange multiple viewing times to suit their schedules.

Advertising your property - Listings and signage will be posted both online and at the property to advertise it effectively. Online listings are often posted on a property manager's website and free listing websites, and some property managers will get you premium ad placements on popular real estate websites such as realestate.com.au and domain.com. This increases the views and possible inquiries for your property due to its high reach.

Open home - A property manager's next step in renting out a property is to talk to potential tenants at open homes and get to know them as people – to gauge whether they are suitable. The property manager then gathers feedback and follows up with potential tenants to determine whether they're interested in renting. If so, they move on to the next step - tenant screening.

The tenancy verification process includes checking tenant applications against tenancy databases, verifying references, conducting individual interviews, and examining employment tenures.

In the world of rental property management, one sort of person is certain to stand out among the crowd – the best tenant. How can you find this elusive soul? It all starts before you even post your vacancy. With an eye toward quality tenants, property managers utilize a variety of techniques to maximize applicant pools and quickly determine which applicants are good fits. Through the review of rental applications, credit checks, and in-person interviews, PMs can determine renting characteristics for individual applicants and narrow down the field quickly to find only the best tenants.

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5 rules for buying properties in Perth

If you are thinking of buying an investment property in Perth, now would be a good time to take action. The Perth property market is currently very healthy and at extremely affordable prices. For example, the latest figures show that the unemployment rate in Western Australia has fallen to 6 percent, which is almost the same as the national unemployment rate.

When buying an investment property in Perth, first-time investors may want to consider the following points:

1. Infrastructure

New infrastructure can play an important role in driving future capital growth. For example, the proposed $45 million Perth Academic College in City Link is a positive development for families, which should positively impact surrounding property values.

2. Research

It is important to research all aspects of a property market before looking for an investment property. Issues such as negative or positive gearing, rental returns, and depreciation must be considered by first-time property investors. Good indicators of future prices are past trends in property values and the long-term growth rate of the suburb.

3. Wide approach

It's important to be open to different locations when you're buying an investment property. A popular option for first-time property investors is to invest close to home, but you'll miss out on good opportunities if your search is too narrow. For example, many people who live in the outer suburbs of Perth tend to overlook excellent buying opportunities in the inner-city, where property prices have become affordable.

4. Stay focused

When you are looking for a home to rent, don't make an emotional decision about which property to buy. Most first-time investors buy the property they prefer to live in. It is important to remember that the tenant will be paying the rent, so it is important to make sure the style of the home will appeal to renters.

Most renters are younger people who prefer to live close to the city in low-maintenance properties such as apartments and townhouses, which often provide rental income. However, if you can't find a tenant to rent your property, you won't be able to pay back the loan on time.

5. Use a property manager

For first-time property investors, the most common error is to try and manage the property themselves; this is a huge mistake. It's the number one reason why many first-time investors never go on to buy a second investment property because they select a poor-quality tenant without undertaking the necessary background checks. Selecting a poor-quality tenant can result in thousands of dollars of lost income and damage to your property; this is a big financial setback that many first-time investors cannot recover from.

If you choose a property manager, he or she can often help you get a higher rental price than you would get on your own because they are trained in negotiation and have access to systems that can help them reach a much wider audience for your advertised property. This will help ensure that it is rented quickly.

Investment properties in Perth can be very rewarding, and you are bound to make some great capital gains as the property market continues to realise record prices for many years to come.

[blogger-anthony-writes]

The Most Important Real Estate Factor – "Location."

When a real estate boom is in progress, many homebuyers will compete to buy any house that hits the market. This can be great while it lasts, but homes in the most sought-after locations will eventually increase in value when the boom ends. This difference in value largely results from where the home is located.

Why Is Location Important?

To understand, let's look at why a popular phrase—that the three most important factors when buying property are location, location, and location—came into being. Most people buy a house based on how much they like the structure, but you're also purchasing land when you buy real estate. The place can certainly be re-modeled or renovated, but you can't move it.

Even if you buy an apartment in the city, you have invested in a specific location. Neighborhoods and cities can be "good" or "bad" investments for just the same reason: Supply and demand. Housing supply in great locations is limited by the number of homes in that location.

5 Factors of Location

Of course, one person's definition of "good location" is not necessarily another's. But certain factors can make a difference in a home's value and appeal to potential buyers.

Centrality If you're buying a home in a city, you will be affected by where you choose to live. If the city has lots of development potential and little space for additional growth, its prices are likely higher than those in cities with too much room to expand. 

 1. Neighborhood

The area that appeals to you most is a matter of personal choice. However, a truly great neighborhood will have several key factors in common: walkability, appearance, and access to stores, parks and other amenities. Your neighborhood may also dictate the size of the lot on which your house is built.

When looking for a home, look for an easily accessible neighborhood close to a city's major transit routes and with more than one entry point. The trip to and from work is often one of the biggest parts of the day, so the house should be close to roads and public transportation. Shade trees, quality landscaping, and nearby parks or community spaces tend to be desirable as well.

2. Development

Future amenities are just as important as existing ones. When plans are revealed for new schools, hospitals, public transportation, and other civic infrastructure, property values generally rise in the area.

As when shopping for a home, you might want to find out whether any new public, commercial, or residential developments are planned and consider how these additions might affect the desirability of the surrounding areas.

3. Lot Location

If the house you want to buy is on a busy road or close to a highway, you can probably get it for less than if it were in a quieter location, but you may find it more difficult to sell later.

A house's value may be affected by the amount of commercial activity in the neighborhood, such as a grocery store or gas station. A house near large churches or community centers may get unusual parking traffic and parked cars. Houses with a wonderful view or near a body of water are likely to be more valuable, both now and when it comes time to sell it.

4. The Home You Purchase

You may be surprised by this, but there is one aspect of house hunting that can save you money. For instance, if you have narrowed your choices to two homes, one in need of repairs but has a huge lot and the other in tip-top shape but sits on a lot half the size of the fixer-upper. In most cases, the house in need of repairs is the better investment. Remember that the house is not an appreciating asset. The land beneath it is.

The Bottom Line

If you are considering moving to a new neighborhood, it is important to be aware of the sources of knowledge available to you. Mention that you are thinking of buying property in the area to the people in your local coffee shop, and they will happily give their advice and share insights with you.

Don't forget to speak with local realtors about the pros and cons of different locations. They are professionals in the industry, so they know the ins and outs.