As an industry, real estate is constantly changing. If you’re a property investor, you need to be aware of these changes – no matter how seemingly insignificant – as they could affect your business.
Since landlords mostly attempt to supply services to cater for general demand, the following recent alterations will be valuable information. Read on to learn about how they could affect you.
Median rent takes a dive in capital cities
CoreLogic RP Data from July shows a significant drop in rent rates across all cities, aside from Hobart and Melbourne. Median rents in capital cities have hit their lowest point since December 2015, but Melbourne has seen a slight increase of 1.2% over the past year.
The job market is one explanation that experts are leaning on for this sudden dip in median rent. When compared to recent years, the Australian unemployment rate is significantly higher and wage growth in the private sector is at its lowest point in over 15 years.
Since the rental market is heavily dependent on the ability of tenants to actually pay rent, unemployment stats can leave noticeable gaps in the rental market.
Minimum size has been ruled as less important than design
The Property council of Australia has driven out the minimum apartment size over the past 18 months, replacing it with design quality. A room’s standards are no longer determined by how much space there is – instead, it’s down to how that space is being used.
Asher Judah, Acting Executive Director of the Victoria Property Council states that regulations around apartment sizes simply don’t work. Instead of placing their primary focus on square footage, he believes that landlords should be focusing on the design quality of their properties.
RSPCA seeks law to overturn ‘no pets’ landlord rule
Research from the Animal Health Alliance has found that 63% of Australian households are home to a pet. With landlords eager to maintain a high standard of their properties, however, it’s difficult for many pet owners to find accommodation.
As a result of this, the RSPCA has recently made a huge push to overturn the ‘no pets’ clause in many landlord-tenant agreements, Instead of seeing this as a disadvantage, however, landlords should make the most of it, as many tenants would be willing to pay more in order to keep their pets with them.
By keeping updated on local and national industry changes, you’ll be able to stay one step ahead of the competition. For more information, speak to your local Ruralco Property office.