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WA rental market continues squeeze

High levels of rental property demand are expected to continue in Western Australia as new data shows little relief for renters in the short to medium-term future.

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perth
Rents are still too low, until an investor can get a reasonable return the rental shortage will continue. Why would I want to buy a rental property when the rental return after maintenance & management costs is negligible ? Without the prospect of huge capital gains we need rent to increase to at least 10% of the property value to make it worth investing again. eg. the rent for a $400,000 property should be at least $770/week

or maybe house prices are still too high

Agree with Harry but $770 rent p/wk for a $400,000 property is slightly high. Investors would consider an investment property with a return of $550 p/wk. Currently the govt wants the public to make considerable investments and carry the risk whilst reducing the benefits associated with investment properties.

Perth
Sorry, but the REIWA figures - and spokesman Rob Druitt - completely disagree with this article. This is from a recent REIWA press release: "Mr Druitt said the once tight vacancy rate for tenants had now returned to normal, with REIWA recording a comfortable 3 per cent vacancy rate, illustrating many new properties had flooded into the rental system as investor/owners now find it a difficult time to sell. “For the first time in several years tenants should now find it much easier to find a suitable home. There is much more stock available and much more competition amongst owners to secure good tenants. “However, rents did increase a little in the June quarter, lifting by $10 per week for houses to a median of $350 per week, while units rose by $10 per week to a median of $320 per week,” Mr Druitt said. “Given the large number of properties now being passed over into the rental system, it is reasonable to expect that rental price growth will ease in the latter part of the year. “Landlords need to be mindful of the changing conditions and not to price themselves out of the market,” Mr Druitt said. So why would anyone want to spread false rumours about the rental market???????????????????

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