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The future of Australian property prices

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SirRumpole said:
Do short term rentals distort the property market ?
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No doubt this is the case for the rental market in certain locales. Places like the Gold Coast, Byron Bay and other popular beachside communities seem to be where short stay rentals have a significant impact on the local rental market. Once stayed in an Airbnb place in Byron Bay managed by a young couple whose sole occupation was managing Airbnb rentals for local owners. From memory, they managed over 40 properties at that point in time (pre-Covid). Then again, here in Melbourne, a nice upmarket apartment building in St. Kilda where I rented for a year had 5 apartments that were used solely as Airbnb rental accommodation.
 
Big discrepancy in prices between the states.

Steep rises in interest rates have seen the biggest fall in home prices since the global financial crisis in 2008.

 
Sounds like the RBA has got it right to me, just keep squeezing IMO.
When the end result is a more sensible property price, why stop now?

Banks borrowed cheaply and now face reckoning​

Australia’s banks are running out of time to refinance almost $188bn of pandemic loans picked up from the RBA.

RBA needs to stop hiking: CBA​

Australia should avoid an outright recession as long as the RBA stops hiking soon, but the economy will ‘slow significantly’, according to CBA’s Gareth Aird.

Why are property investors quitting?​

In a market where rents are rising 25 per cent, softer prices and rising rates do not explain the exodus of private investors.
 
Morning/arvo sptrawler We have an empty house 4x1 with dble carport. Been empty for 3 years now and will stay that way. Sick and tired of tennants crying poor, not doing their share around the joint etc etc. Much easier for me or her sometimes just to keep the area tidy
 
Yes been there done that, the wife flatly refuses to get involved in renting again, we did it for 30 years. Had one decent tenant in all that time, every time a tenant left the wife made them spotless for the next tenant, they were never cleaned by a tenant when they vacated.
 
Only know that scenario too well. At one stage had 3 rentals and all left on departure, as if they were brought up in pig styes. "She who is never wrong" has the same attitude as your wife also. What we found when we kept the bond back, total astonishment that we had the hide to keep it back for the cleaning and in some cases repairs.
 
If they had their rent upto date, we normally gave them the bond back, the wife said I was too soft to be a landlord. Lol
 
sptrawler said:
If they had their rent upto date, we normally gave them the bond back, the wife said I was too soft to be a landlord. Lol
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"She who is never wrong" wasn't keen on tenants and reckoned I was too strict. I expected them properties to be left in the same condition as when the low life's moved in !!!!!
 
UMike said:
My first rental atm. Using an agent.

Seems smooth but expensive so far.
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We never used an agent as 2 of the houses were on farms we owned. The third was one were we once lived but decided to keep it as an investment. Mostly turned belly up. One house burned to the ground, another mongrel tenant and the third sold before it was completely damaged also.
 
sptrawler said:

Why are property investors quitting?​

In a market where rents are rising 25 per cent, softer prices and rising rates do not explain the exodus of private investors.
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only a guess , but those with ( high levels of ) cash are probably waiting a little bit for an extra discount

sure some will still buy discounted trophy properties which should help keep AVERAGE prices up ( as less low end properties sell for a decent price )

a more interesting question might be , how leveraged are those private investors , sure rents are going up but so are costs ( not just interest rates

now this might not be as bad as the GFC 'loose-lending' practices , or it could be disguised better this time
 
I have had a couple of rentals, the last one I had for 8 years, two tenants, 5 years and 3 years.

Never missed any rent, never damaged the place, I used the strictest agent in the town and the locals knew that.

The other one was 5 years 3 tenants, no problems except the fence blew down in storm. Again, smallish town, strict agent, seemed to work well

I always used an agent and I expected them to do inspections twice a year, I went once a year to have a look
 
wayneL said:
Thoughts on RE investment vs a REIT, gents?
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Only my opinion, but after my experiences, the only investment property I would buy, is one that I wanted to move into at a later date.
That way you actually have a reason for buying it, rather than just providing social housing, good tenants I have found tend to move on to their own homes, crap tenants tend to stay.
So it makes it worthwhile, if you eventually want to move into it and meantime someone is helping to pay for it.
If for example I wanted to be near public transport, amenities e.g hospitals, cinemas, theatres etc when I get too old to do what I'm doing, I would buy something that fit the bill and rent it until I was ready to downsize.
Then sell what I have as a prime residence, pay out the rental and move in, pocket the difference.
 
Ok just throwing a couple of concepts into the ring for discussion

1 I answered an ad for housing for disabled with NDIS funding. On the face of it, it looks good, (of course) but I have several misgivings and possible gotchas over the long-term

2 AirBNB. Seriously haven't really looked into this much at all it was just an idea that came up in discussion. Once again looks good on the face of it but I am sure there are many traps.

As a general principle we are not really that keen on direct real estate investment investment, especially considering some of the posts above.

Petty issues are just not on our agenda of things that we want to contend with. We've got enough of that shxt in our own family/lives, never mind having to deal with other fruit loops.

Nb it's not always the tenants, quite often it is the rental agent which should be permanently in a straight jacket and sedated.
 
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I'm not and have never been a landlord but from the posts above and the experience of friends I think part of the problem is society uses a very false set of methods to determine who would be a good tenant or indeed a good anything.

Credit scores in the way they're done are truly bizarre. Borrowing money gets you a better score than someone who has $ millions and pays cash for everything. That just beggars belief.....

References always suspect as a concept. The worst people in society tend to have a long list of friends and associates they can get to write them something. Versus the stereotypical introvert with few friends but who'd be an excellent tenant, employee or borrower simply because they follow rules religiously. Trouble is, the bit about needing a reference trips them up so they don't get chosen.

Simply choosing whichever tenant will pay the most is likewise not generally a great strategy. You've just chosen the most desperate person you could find. Hmm.....

That's not to say everyone or indeed anyone here has personally done that but I do think it's an issue, especially when it comes to how agents manage properties. Someone could be worth a fortune, retired and with no rental history since they've always owned outright and plenty of agents will knock that back in favour of a troublemaker because their rules say "must have job" and "must have recent reference". That's a failed process to say the least.
 
wayneL said:
it's not always the tenants, quite often it is the rental agent which should be permanently in a straight jacket and sedated.
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Most real estate agents, despite their protestations, are not interested in rental management. The prime motivations for offering a service are:
1. To maintain the link such that they get the listing when landlords decide to sell. Average period for investor to hold is less than 7 years.
2. To have a rent roll that affords a way to price the business when time comes to sell.
 
I agree mate. I've personally also had a terrible string of bad landlords. It certainly goes both ways. Some of the worst experiences was when I lived overseas though.

I've also found it a weird system to choose people, just as you've highlighted. I also have high level of liquidity/available cash due to my investments (like a lot of you here) but my credit (while still pretty good!) suffers from a lack of debt history. I hate having loans/debt and yet this can work against you.

I'm more tempted to invest in a REIT than in a property. Maybe in a SMSF but would also be a candidate to move into when I retire. I also came across this video on youtube, which I thought was interesting.
 
A mate rented a house to disability services and can't sell it now until they can rehouse everyone
 
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