10 Oct Rain Rain Go Away!
Rain is an important part of our lives…. Most importantly, it provides an integral source of nutrition for us, our food and livestock.
There are a few aspects of our lives however when we don’t like rain! For example if we have to move house (i.e. tenants moving into your investment property!) or construction workers (building your new investment property!).
The good news is that with every ‘dry’ day we experience, the more construction restarts and tenants start searching for their dream rental property!
Throughout 2016, Adelaide has experienced the worst weather in history according to The Bureau of Meteorology’s (BoM) Monthly Weather Reviews.
From January – August 2016, average rainfall was up 44% with 6 records set across South Australia for the highest daily rainfall on record in August alone!
Needless to say our builders are hoping, wishing and praying that spring arrives soon – rain and construction just don’t mix!
Unfortunately we can’t control Mother Nature / the weather. Let’s just hope that the sunshine continues to shine and spring has finally sprung!
The rain hasn’t just slowed down construction, but also slightly slowed down the rental market with prospective tenants delaying a move to the warmer months (and who could blame them?!)
The weather has resulted in a small slowdown of prospective tenants in the rental market however in good news, this is nothing outside of normal rates.
In even better news for landlords, news.com.au recently reported on the long-term private rental market here in Australia.
According to a comprehensive study conducted by Australian Housing and Urban Research Institute (AHURI) and released in July 2013, just over a third — 33.4 per cent — of all private renter households are long-term renters who have been living within the private rental tenure continuously for 10 years or more.
This study drew on a survey conducted by the Australian Bureau of Statistics (ABS) in 2007—08, supplemented with an analysis of Waves 1 to 10 of the Household Income and Labour Dynamics in Australia (HILDA) Survey, meaning this number has no doubt increased well beyond one third.
Even more telling, the study showed that close to one third (30 per cent) of all long-term private renter households included dependent children.
These long term tenants are an investors dream!
With more and more people pushed into the long-term rental market due to rising house prices, Yaelle Caspi, policy officer for the Tenants’ Union of Victoria, said this is pushing the rental market.
“We definitely hear from tenants a lot about struggles to find properties,” she told news.com.au.
“The market is quite constrained. We are seeing people rent for long periods of time as home ownership becomes more out of reach, so it is putting pressure on the whole system. There is not enough affordable housing and there is an increasing number of people competing with those affordable houses.”
The market in South Australia is similar to that of Victoria with the main differential being price! South Australian investment properties are still affordable to most people interested in purchasing.
With the sun shining and newly built properties being snapped by tenants at first opens, now is the time to purchase an investment property!
ACT TODAY – contact Property Asset Planning for your free, no obligation appointment.