Following the recent Federal and State Government Homebuilder Grants which has stimulated the WA home building market to record levels, the growing rental shortage in the local area has been further cemented with the uplift in new home builds. Baldivis one of the biggest growth suburbs is booming and those people are opting to live close by during the new home build process. This is creating further demand for rentals and is naturally pushing prices up and supply down. The pain for tenants looking for new rentals is set to continue for some time.
Summit Realty are reporting receiving 4 times more enquiry to the same time last year, with much less stock availability. Looking at the figures they received 1405 rental enquiries in the month of March on 17 rental inspections, compared to the same time last year was 1075 on 49 Inspections. This is an average of 83 enquires per property compared to only 22 enquiries per property in the previous year.
“If we had another 50 rentals in Baldivis right now we could rent them all. This is a perfect opportunity for investors to get in on a rising market, with low interest rates and high demand for rentals accommodation. With some financial institutions offering 2.5% interest rates on investment loans, a number of properties in our area are positively geared. It’s really worth considering, or discussing with a finance broker to see if you’re in a position to buy your first investment property or add to your portfolio of properties” Brock Gurr, Licensee at Summit Realty commented.
While wider reports are the end of rental mortarium is pushing prices up, Summit Realty believes in the local area it started long before that. “It’s a simple supply and demand issue. We haven’t seen a lot of investors over the last seven years, and what we have seen is a lot of investors cashing out of property. So rental accommodation is in short supply. With a rising market we expect it will be a little hectic for a while yet, but that hasn’t been because of easing the moratorium” Brock Gurr added.
Summit Realty has been recently acknowledged as Rate My Agent’s Property Management Agency of the Year for Baldivis, for the second year in the row. The team has 30 years’ local expertise and experience and work in the best interest for their clients and investors.
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