It appears that we have reached the bottom of the boom and bust cycle in Western Australia, and the news for 2019 is positive. Not only are house prices recovering but also there is a decline in the number of properties being offered for rent. This means the start of a recovery in the rental market also, and while rents overall may not increase for some months, the huge discounting that caused owners so much grief may be coming to an end.
Good News All Round
This is good news for both parties in the rental equation, that is, the owners and the tenants. Investors who have purchased properties to rent them out are now beginning to see some increases in their returns. Tenants, who were struggling to find suitable homes at affordable prices a few years ago, are now settling into better accommodation closer to facilities and within range of a reasonable budget.
Don’t Expect Miracles
This does not mean that rental values will leap quickly to their previous record levels. Experts predict that rental values will remain within a reasonable range for some time, and although demand for rentals is increasing, it is being balanced out by first-home buyers. They would normally be renting but can now purchase affordable new homes by using the attractive packages on offer by developers.
What does this mean for us at Bunbury Real Estate? As a seasoned and professional sales and property management agency, we have ridden the ups and downs of the property market. At all times we are looking after the best interests of our clients, whether they are sellers, buyers or renters, regardless of what market forces are at play.
Renters Should Lock in Lease Agreements Now
To our renters we are currently saying that now is an excellent time to lock in your lease agreements as rental values are expected to stabilise. There is no point in waiting for the rental market to fall further, as all the trends are indicating an upward trajectory. Now is the time to secure your ideal rental property on a long-term lease at an affordable price.
Owners Should Grab Quality Tenants Now
We advise our owners to secure these quality tenants now, so they have some certainty around the returns they can get for their rental properties. The discounting may be gone, but this does not mean an immediate bounce back in rental values. This will be a slow and steady climb, so having good tenants to fill their vacancies should be the focus for the time being.
The market is finally breathing a sigh of relief, and we can now look forward to sustainable prosperity without the wild swings and roundabouts we have recently experienced.