renth

It's unbelievable right now, Perth is quite literally "full" so unless you want to live in a pig sty you'd better have a good plan B.

If my landlord ever sells the house or puts the rent up to what he could get (we've been in the house 2 years, he could easily ask for $100 -$200 a week more than we are paying) then, realistically, I'll have to get out of Perth, as there is no way I'm paying what they are asking for some of the dumps right now.

My Plan B is Cairns, I've been looking at the realestate site, some lovely spots around the Tablelands, Just have to get a job....

kiwichild

Yep it's ridiculous. I'm thinking melb or tassie myself. I hear there's actually life there

NKSK version 2

Great point – I’m thinking of the same myself.

Things are going well at the minute for us but really, the only reason is because we have a secure rent for the next two years. If things go pear shaped after this point we will probably consider going back to Asia. The prices being charged for property – rental or purchase – are completely out of line with the quality.

But….the ANZ report at the weekend gave me some hope – that Perth prices were currently 30% over ‘fair value’. And every other capital city has dropped in price once it became 30% over valued. (The other thing the article noted was that for the first time there was a shift to more supply of properties on the market (rather than more demand)).

NKSK version 2

And another thing - aren’t Perth prices now almost the same as Melbourne’s?
I like Perth but I’m sure Melbourne also has good points!!

kiwichild

From what I have heard Melbourne has heaps going for it, entertainment, restaurants from very cheap to top of the range, work opportunities, pubs n clubs, shopping to rival sydney etc etc

steve99

Rental prices had to go up at somepoint, what you could get for your money relative to its market value just didnt add up. There's been a lot of new investors into the market in the past few years and I dont see how they could afford the mortgages with such low rents.
Your trouble is you've been spoilt sounds like you got a good result when you first started renting and now its look even better value.
Do you still have the place in the UK?
Is buying in Perth not an option (I guess the answer to the above might answer that)

Cairns (or more specifically Port Douglas) is on our long term radar, fantastic spot, but like you say relative to the work opportunities in Perth a decent job is going to be a real show stopper.

spalen

the tax break for negative gearing (renting a house out for less than you mortgage it for ) changes in 2 mths to only benefit those earning > 125K$ it used to benefit anyone over 100K$ so guess what - instead ofbeing 'lots' of people its now only top 3% of earners who get benefit.

So negative gearers will either flog their rentals , or put rents up to cover mortgages.

renth

Negative gearing mate, you need to make a loss to lower your taxable income.

renth

Thanks for the detail Spalen. That's all we need, another factor forcing rents higher along with the supply/demand thing.

steve99

Yeah but it doesnt make it free does it, just eases the shortfall but there's still a hit on your pocket.
Negative gearing shouldnt really exist, a rental property should always cost more to rent than the equivalent mortgage on the property. If you have to rent you should being paying a premium to do so over someone commiting to a mortgage and the responsibility and upkeep of a property.

spalen

It doesnt though - and the investor is sitting on an asset that is appreciating massively ( capital house growth ) some muppet is paying the mortgage for him (rentee- me too) and ... the tax man is covering a gap in the two and giving him tax relief to maybe move other earnings into lower brackets... it does work out.

but now that the tax-man gap filler is closed - the rents have to rise to cover mortgage costs as you've rightly pointed out... hence rents increase.

NKSK version 2

here's hoping that the removal of the tax incentive will lead to greater supply of properties as investors seek alternative vehicles for their cash.

TonyMc

and all that bull .... you have been giving about it being so good over there. come over this side and you can see where the sun comes from and you wont have to get it second hand

northernbird

hubby and i are in the market for a new rental at the moment. in the past 12 months since we arrived rents have gone up a lot. we took a look at a 4x2 in Marmion this week. They want $550 per week for it and its a shithole.

renth

FFS! - Outrageous.