mbike

Not strictly true. The majority of rental property in Perth has actually been owned outright by the same people for many years so they are unaffected by mortgage rate rises.

If you are foolish enough to rent a house from a short-term property infestor your contract will still ensure a minimum of 6 months between rent rises.

And if they do put the rent up, with vacancies easing to 3.7% last quarter it won't be too difficult to find another rental where the landlord has a more common-sense attitude to yields.

Anyone who buys into the rents-through-the-roof propaganda from REIA should realise it is simply there to encourage investment.

Mark

Amazulu

I sort of agree but rents in Australia are low compared to house values - even with recent increases.

bradfordlad

Could'nt agree more.I have a friend who rents a 4x2 with pool in Kallaroo,Perth.$290 a week. He was telling me the owners bought it 8 years ago for around $180k so on their original investment it is a good rental return.

mbike

And most excellent karma for them too.

mbike

You can thank negative gearing for that. If REIA want better yields they need to be prepared to advocate investors giving up the tax benefits of lower returns. The truth is, people are not buying IPs because they are simply too expensive. The remedy is not higher rents but lower prices. Thankfully market forces and the contraction in credit are already effecting this (certainly in the outlying suburbs here in Perth)

Mark