It’s a Landlord’s Market!
With vacancy rates dropping in December to 1.9% across Geelong, it’s no wonder that it is currently a Landlord’s market.
The traditional time in the Geelong market for transition between the quantity of leased properties occurs in January and early February; and this is something that is continuing on trend this year. The key for any aspiring or experienced investor is that this momentum looks like it will carry on throughout the year. The ‘try before you buy’ philosophy ensures that there will be continued demand throughout our region for properties to lease due to the increasing number of employment opportunities throughout Geelong.
As property prices start to balance, now couldn’t be a better time to invest in the region. Whilst property prices may be steadying, rental prices are on the rise in some locations. The growth in prices is being fuelled by the increase in demand for homes in the area; some properties are seeing groups of prospective tenants as large as 30 or more at open for inspections. The increase in quality applications is placing the landlord in the enviable position of being able to choose the best candidate.
Population Growth & Increase in Demand
This is the ideal situation for those who own an investment property, or are wishing to enter this market. We are experiencing population growth; which is leading to an increase in competition for property; creating demand, driving rental return up and reducing vacancy times.
What we have seen in recent months is that there is not just one suburb that is performing well; or a particular style of property being demanded more than any other. The diversity of property that our market offers, ensures that most suburbs are desirable for prospective tenants based on a variety of reasons, for example; proximity to shops, public transport, schools and of course budget.
This diversity allows investors greater flexibility in what they are able to offer prospective tenants, as well as creating the right investment strategy to suit their personal circumstances. For example, some clients opt for a higher yield strategy to increase their weekly income as part of a retirement strategy; others utilise a combination of rental return and high depreciation values of new build to maximise tax benefits; then there are those who are happy to maintain a consistent return while watching their asset value grow.
If you’d like to discuss how to maximise the return on your investment property, offer some insight into a performance strategy for your property or discuss how the forecasted trends can benefit you, please contact me.