Showing posts with label tenant. Show all posts
Showing posts with label tenant. Show all posts

Sunday, June 5, 2016

Brisbane real estate agents say "sell now!"

I receive many newsletters and emails from real estate agents in Brisbane, especially those who specialise in Brisbane apartment resales.  All are advising that now is the time to sell, not the time to buy.  Some examples:

Position Property, Brad Munro:, Autumn 2016 newsletter
  • "There is no denying that there are concerns over just how many apartments are being built across Brisbane."
  • "The concern I have is that many of these developments are being sold anywhere from 80% to 100% to inventors.  Many of these buildings have 200-300 or more apartments -- there needs to be a lot of tenants to fill them all."
  • "Rental prices will decrease which then affects the investment return for the investor.  Even now, with only a limited number of these developments being finished, the rental prices are down from what the investor was promised.  I believe there is more pain to come."
  • "There are fewer buyers in the market."
  • "I am really concerned as to what the next 3 years has in store."
  • "I have no doubt that selling in the next 6 months is going to achieve a better result than waiting until next year."
Tessa Residential CBD Market Overview
  • "We anticipate a stable and consistent market place in 2016..."
  • Oversupply "is a reality throughout suburbs such as Newstead, Bowen Hills, South Brisbane and West End and as a result is having an impact on the rental market with rents across the City starting to soften."
  • "We believe 2016 will represent the optimum time for sellers who are considering cashing in on the improved market, which has continued to grow since June 2013."
So sell now if you are thinking of selling in the next 3 years, but don't buy now -- wait till next year!

Friday, May 31, 2013

Brisbane Rental Report

Brisbane Letting Agent RBCX has issued the following rental report for Brisbane City and inner Brisbane:

"The CBD market seems to be like no other.  Apart from short periods here and there, the demand for rental properties in the CBD is very strong.  There may not be the 20+ attendees at every ‘Open Inspection’, but there are generally eight to 10 interested parties.

The rental demand is strong for units up to $800 per week – and this includes furnished units.  Above that level, the market shrinks significantly and vacancy periods can be three to four weeks+, unless the property is new and/or modern, with fixtures, fittings and décor to match. River and City views are essential.

The CBD buildings that experience less demand are those that offer short-term letting, as well as long- term residential. These buildings can be very noisy with a pervasive party atmosphere.

The Inner-City market is not faring as well as the CBD market.

In the last quarter of 2012, the rental market tightened markedly with the first signs of the downturn in the Resources Sector. There has been further erosion to rents in 2013.  There are many reasons why the rental market is flat and rents have contracted: the gradual 2012 exodus of Corporate tenants, who were the bread-and-butter of Inner-City rentals, gained momentum. In some areas, they have almost disappeared from the rental landscape; the announcement of the Federal election almost six months out from 14 September 2013 has seen many businesses go into semi-hibernation; job shedding in the Public Service market; the fallout from a Resources Sector seemingly in increasing decline; job insecurity; rising unemployment due to a flat economy; and loss of consumer confidence.

Also, many people who were Inner-City tenants have moved to the suburbs. They are prepared to sacrifice proximity to the city for more affordable rents. This trend is increasing with properties, particularly houses within 10 kms of the CBD being in heavy demand.

Our experience is the Inner-city renter wants everything within walking distance: transport, shopping, entertainment. They do not want to have to drive to services, facilities, infrastructure and entertainment precincts.  There is also a great deal more competition from new developments in the Inner-City areas, including Kangaroo Point, Teneriffe and New Farm. New building stock with all the aforementioned criteria is offered at rents below those of older, established buildings. New buildings with trendy, contemporary interiors and more attractive rents are appealing to the sought-after Corporate market, as well as private renters."

Monday, September 24, 2012

Self managing landlords

One issue for landlords who self manage is obtaining access to RealEstate.com.au.  REA only allows agents to list properties for rent.  Domain.com.au allows individual landlords to list a property for rent.  In Brisbane, more people seem to use REA than Domain (although I suggest to people looking to rent to search both sites.)  Now there is a service that allows self-managing landlords to list on REA.  See eezirent.com.au

Sunday, December 4, 2011

Short Term Only

Some apartment buildings are built for residents, but are used for short term stays (hotel style accommodation) that causes problems for residents.  Some apartment buildings are only built for short term stays, and are trying to keep out long term tenants and owner occupiers.

"Quest on Story resident Cameron Green said that unless he and the owners of another eight apartments in the inner-city Kangaroo Point building could find the money to fight a legal battle, they would be out on the streets.

The residents bought their homes unaware that under the town plan they could only be used for short-term stays.

In many cases the apartments were advertised as suitable for first home buyers, the new owners received first home buyer's grants and in all cases solicitors carried out all the relevant searches."