With a sudden burst of energy, the real estate market in Adelaide is changing shape before our eyes -and it’s our landlords who are reaping the benefits.
After too many years of relatively dormant rental rates in SA, we are finally seeing a strong boost in our rental market. Rentals are hard to find, stock is low and weekly rates are rising across the board. Vacant properties are attracting huge numbers to open inspections and there is no shortage of rental applications. These conditions have not only bolstered the average rent at the time of re-letting but have given us the power to re-assess all rents as leases become due for renewal; and the result is a healthy, long-overdue increase to rental rates in our state.
Sale prices are continuing to surprise vendors, purchasers and agents! In a market that is moving so quickly it’s exciting to be on the front line of this industry and witness the remarkable results, firsthand. The great news for our landlords is, that while their investment properties are ticking along quietly as they always have, they are not only generating stronger returns than ever, but the land value underneath is steadily climbing.
The million-dollar question is “when’s it going to end?”; but given that we are dealing with such a tightly held market, it is hard to foresee an end to this frenzy in the immediate future. Contrary to common thought (and as history would suggest), now is not necessarily the time to sell. With so much renovation and so little housing available for sale there could be much greater gain for our landlords by simply holding on. These are the conditions we have all been holding out for - returns are finally showing significant growth & with the current demand for rentals, there is a strong suggestion that this growth may continue. Now, with solid returns and impressive capital gain, you would be hard pressed to find a more instantly rewarding investment outside of ‘property’. So, while ‘cashing in’ can be tempting in the current climate… if it’s not an urgent need, why not leave your chips where they are already so brilliantly performing?
While house prices are showing no signs of slowing, the unit market has not yet followed suit, which opens an excellent opportunity for the savvy investor. Common sense suggests that, with soaring prices in the housing sector ruling out many first home buyers’ opportunities to get a foothold in to the market, the next thing to become desirable will be affordable, low maintenance living. Historically in price rises like this, units and townhouses always follow houses. So, the good news is this; with units and apartments not yet on the move, untapped opportunities await. Now appears to be the perfect time to build on your portfolio and snap up some bargains at the lower end of the market, knowing that you are buying at the bottom.
In recent months, with so many rentals being sold, demand is only becoming greater and all the conditions are aligning to encourage investors to take advantage of this opportunity.
For a chat about anything ‘property’, please feel free to give us a call, at any time. We can help you search for another great investment to buy at no charge, offer you a free market appraisal, or simply chat about your property & the market in general. Phone Sean 0405 788 705 or Jodie 0418 855 645.