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Rents to continue rising

By Tamara Dalziel from Complete Property Centre - rentals@completegroup.net.au

 

With rents rising due to a shortfall of quality rental properties across Brisbane and surrounding areas, property investors are clearly in for a profitable financial year.

 

On average, medium weekly rents have increased by 10 to 15 percent in Brisbane between June 2006 to June 2007, as recorded by bonds lodged with the Residential Tenancies Authority Queensland.

 

These increases have been helped by a low vacancy rate of 1.5% for the Brisbane area and with increased competition due to the lack of available stock and high demand; tenants are fighting for quality homes.

 

Also, as first home buyers are finding the supply of affordable homes limited and competition strong, many are finding themselves turning back to the rental market, further increasing demands on rental supplies.

 

So for many investors this on-going shortage of rental properties is extremely good news.  No longer are property managers struggling to find suitable tenants within a short period of time and at average market prices.  In some cases, property managers have received over 20 applications for one property.

 

With this said, investors should be cautious on the extent of rent increases they put in place.  If rents are raised too high and do not reflect the current local market demand, tenants can dispute the rise or if the property is vacant thus increase the vacancy period.

 

With the projected population growth in South East Queensland set to steadily increase, many are starting to question the impact of housing shortages in the future.  In the meantime, investors are not complaining.

 

If you have any questions regarding suitable rent rises in your area or if you have any other property management questions, please feel free to contact our office on 3257 2500.

 

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