With so many other countries battling high COVID-19 cases, I’ve never felt luckier to live in our isolated city. Perth beaches, warm weather and smaller population have always made me happy to call it my hometown but now we have added reason to feel appreciative.
It seems I’m not the only one feeling this way with people flooding home from living abroad (and even interstate), which means our real estate market is booming. For those selling their investment properties, it has been an amazing time. Personally, I sold an investment property at first home open at asking price when 12 months ago, we had no bites at all. How the market has changed!
However, the flipside to this has been our rental market has reached crisis levels. The sale of many investments means tenants have been moved out of their rentals or have been asked to pay higher rent to match the very competitive market rates. Ouch!
Can you believe the vacancy rate has dropped to below one percent?!
If you’re renting, you may feel anxious about what is happening and if you’re an investor, perhaps you’re wondering how to make the most of a booming market while keeping a good relationship with a great tenant. So here are my tips for you to consider as you navigate this tricky time…
- Maintain a good relationship with your property manager
Renters: Now more than ever, you need an industry expert on your team as they will vouch for you when it comes to providing references, they’ll be ahead of the pack of what’s coming onto the market and able to offer advice on appropriate rental prices.
Investors: Maintain open communication with your property manager and tenant because at the end of the day, your tenant pays the mortgage and you need to negotiate terms that benefit both parties. Just because the market is hot doesn’t guarantee you a great tenant – so if you have a good one, look after them! Always remember, you might own the property but it is their home.
- Readjust your financial goals
Renters: While prices are high, it might be a good time for renters to consider purchasing your first home to skip the rental market madness and create some security for where you live. Interest rates remain at record lows, so despite property prices being slightly higher there’s some relief on the other side! Buckle down and safe for that deposit…
Investors: Maybe it’s time to reconsider your portfolios. The COVID crisis will pass and I think it’s key to receive some good advice on where to from here. Again, a property manager with years of experience will set you up for success long term.
It’s a very exciting time to be in the Perth property market and seeing the confidence buyers are displaying, particularly first home buyers and first-time investors. It’s a great position to be in for a property manager to present our clients with an array of applications to choose from, particularly with multiple offers above asking price.
If you need assistance with your property or renting the right place, I’d love to help you. Contact me on 0402 888 550 to discuss further.