Residential rental providers are fleeing the Victorian market at concerning levels. Some are taking advantage of Melbourne’s strong market conditions and others are unable to meet the demands of the changed Residential Tenancies Act.
This should not deter those looking to invest. A lack of rental properties will soon see demand soar, and therefore rental returns will increase.
For those considering an investment property, steer away from inner-city apartments, particularly those surrounding large educational institutions. While international borders remain closed, purchasing accommodation in these areas should be avoided. Instead, opt for a unit with some outdoor space, and if your budget allows, consider a larger family home.
Those investing should also keep in mind; interest rates won’t stay this low forever. Factor in interest rate rises when making these financial decisions.
Real estate is a long-term game. Historically, Melbourne’s property prices double every 10 years. So, if you’re waiting for the market to drop, the reality is, no decline will offset the steady growth we have seen in Melbourne for decades.
While current market conditions may seem overwhelming, those who invest wisely will be reaping the rewards before long.
To chat further about investing in the current market or if you are a residential rental provider seeking advice, call us today.