Brisbane rents ‘too cheap’: expert
If you think rents are high now, this could shock you: one property expert thinks most landlords are undercharging.
While prices have been on the climb, Rental Express director Chris Rolls said many landlords have a lack of marketing information and were charging too little – not too much.
The median weekly rent for a two bedroom flat in Brisbane rose 12 per cent in the past twelve months, while the cost of renting a three bedroom house increased by 9.8 per cent.
But the climate of the rental market has changed so dramatically in recent years that some investors were stuck in the past, Mr Rolls said.
When changes to superannuation laws were announced, a wave of investors sold their properties and shifted the proceeds into superannuation – tax-free.
That mass exodus, coupled with soaring property values, spiralling vacancy rates and increased demand makes the market very attractive for investors.
However many haven’t realised just how attractive, Mr Rolls said.
“Many agents and owners live by a standard rent increase of $5 or $10 per week each time the lease expires,” he said.
“This just doesn’t make sense in a market where rental prices are increasing by up to 15 per cent annually.”
Owners are getting a better return on their investments than in the past 10 years, and the trend was expected to continue, he said.
HowMuchRent.com.au is an independent valuation resource that calculates expected rental income.
Landlords enter the details of their property, which is sent to an independent agent in the area.
“It’s really useful for owners who think they should be getting more for their property, and particularly useful for those who are considering buying a property as an investment,” Mr Rolls said.
For the full report, please visit www.brisbanetimes.com.au
Source: Brisbane Times
