Tenants turn the tables

Vacancy rates hit an all time high pre Christmas. In previous market conditions landlords have been able to have their pick of tenants, increase rent regularly and were rarely impacted by lease breaks.

This has all changed with the flood of sale properties that have turned to the rental market as their property has not achieved the value the vendors need.

So where have all the tenants gone?

First home buyers are turning away from renting and are becoming home owners, attracted by the lower interest rates and home grants. Compounding this is the increase in unemployment in the highest rental demographic - the 18 to 30 age bracket - as they go back home to live with Mum and Dad. Tenants are now in the box seat when it comes to choice of properties and are offering rents way below the previous market rental returns.

And it's not just in South Australia, many prime rental areas in Melbourne also have homes sitting empty. Landlords have been forced to slash rents as the availability of properties outstrips demand. Diminishing returns has meant landlords are reluctant, and in some cases refuse to maintain properties leading to an increasing number of tribunal disputes.

Residential Tenancies time frames have subsequently blown out and the tenants are commonly favoured when it comes to claims for water or damage.

So who will pay investors mortgages now, as highly geared properties lay vacant and bank fees mount up?

It is important that investors are fully armed with the right information and have access to funding that will withstand market conditions we may have for some time to come. Last year, Toop&Toop partnered with Commonwealth Bank to hold a series of Investment Property  Seminars. The next one is at our Victor Harbor office next Friday, 18 January 2013, 5.30pm – 7pm.

Managing Director of Toop&Toop Real Estate says that the Fleurieu is an ideal location to invest in, and that purchasing in 2013 could prove to be very fruitful.

“We have an aging population who increasingly need to be close to medical facilities, people who are looking for a laid-back lifestyle and activities that are not too expensive. As we age, we also want a quality environment, pretty scenery, to be close to major transport and cultural centres, have all government facilities and support systems readily available... and given that our incomes may be affected, we also need to live cheaply,” Mr Toop said.

“Think about what ticks all those boxes... what is close to Adelaide and has very affordable housing, yet is high class? A place where there are endless activities such as fishing, skiing, sailing, surfing, wineries, tourist destinations, restaurants, golf, bird watching, whale watching, great weather and great scenery? I believe buying here in 2013 will prove very smart indeed.”

Genevieve Toop, General Manager of Sales & Marketing says the event will not only provide valuable information for investors, but that the evening will also be the official grand opening of Toop & Toop’s newest initiative – the Fleurieu Real Estate Gallery.

“We will officially be opening our new ‘Fleurieu Real Estate Gallery’ on the night – a place which will visually showcase what the Fleurieu has to offer in terms of holiday letting, long-term rentals and what is available for sale,” Ms Toop said.

“So if you are in the area, or are heading down to the beach for the weekend, be sure to drop in and find out how you can take advantage of the current market conditions.”

You CAN reserve your place at the seminar online at www.commbank.toop.com.au

For further details, please contact Genevieve Toop on 8366 0811 or 0418 824 178.