NATIONAL DWELLING VALUES RECORD FIRST RISE SINCE OCTOBER 2017
The August results from CoreLogic revealed a significant lift in dwelling values over the month with consistent increases in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low.
Buyer demand & confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy. This means that we could see a number of people choosing to own rather than rent.
So what does that mean for property investors? Will there be an increase in vacancy rates and a decrease in rent?
TENANT RETENTION AND VACANCY MINIMISATION
For a strategic property investor now is the time to implement a safety plan to protect from this market change.
Your plan should include speaking to your property manager as they can give you direction to help minimise your risk for your investment.
Some things you should consider:
- If your tenant is out of lease it would be advisable to consider offering a new lease.
- If you have not discussed a rental increase recently, this should be addressed before offering your tenant a new lease.
- The timing might be perfect to take care of a few strategic renovations, especially if you are offering a new lease which contains a rental increase.
- Consider offering a long-term lease of more than 5 years, allowing landlords and tenants to tailor the terms of the lease agreement and agree up front on things like rental increases and minor changes to the property.
Our Property Managers and Investment Services team are available to help you with your property plan, please contact us to arrange an appointment to put your plan into action.