Adelaide Property Managers Look For Investors To Capitalise On Lack Of Supply As Demand For Rental Properties Increases.
The housing market has shown resilience to the effects of COVID across Adelaide with increases in property prices and growth stronger than most other capital cities across Australia.
Today, after the largest economic downturn since the 1930’s, the Governor of the Reserve Bank (RBA) Philip Lowe, the federal treasurer (Josh Frydenberg) and CommSec chief economist (Craig James) have all said we are out of the recession, caused by state and federal governments shutting down many business sectors as part of their strategy to stop the spread of COVID.
So how can this be reconciled with an increase in property values across much of Australia and particularly Adelaide?
This article looks to explain why the Adelaide rental property market is strong and why landlords, or property investors as they’re referred to at Salvan should be looking to invest in properties to rent out through property managers from Salvan Property Management.
Low Cost Of Debt
The cost of borrowing money is at an all time low, with the RBA lowering the official cash rate to 0.1%. Banks are offering record low mortgage rates, so the cost of debt is low.
People need a place to live. With an increase in unemployment, the percentage of people looking at renting compared to buying increases.
It’s not uncommon for housing markets to increase in value during negative economic shocks, or periods of rising unemployment. This is because the monetary response to rising unemployment and falling consumption, is often to lower the price of debt. Those people that still have secure employment and income during these times are more inclined to borrow and buy property as a result.
With a growing number of people searching ‘rental properties Adelaide‘ online, the demand has noticeably increased over the last 12 months.
Salvan Property Managers are experiencing an increased number of potential tenants looking for both houses to rent and units to rent across the southern, eastern, western and particularly the northern suburbs of Adelaide. Families after 4 bedroom homes are in higher demand as is 2-3 bedroom units for young couples with a child.
There is however a shortage of quality rental properties available. New open inspections are receiving significant interest with many quality applications taken to select from, so the time from advertising to being occupied is often only a few days. Depending on the suburb, size of the dwelling and number of bedrooms and whether the property is pet friendly, which we encourage, advertising may not even be required.
Salvan always have quality people adding themselves to the tenant database, ready to move in.
Many prospective tenants are reading ‘How To Get Approved For A Rental Property‘. Knowing what’s required and being prepared is a great way to get an application to rent high up on the list of an ever increasing number of applicants looking for rental properties.
There has never been a better time to become a landlord, stress free by purchasing a house or unit and renting it out as an investment using Salvan Property Management in Adelaide.
Natalie Salvati (Principal of Salvan Property Management) is a registered Real Estate Agent (RLA 276287) with over 20 years experience in the property management market, looking after metropolitan Adelaide landlords, or as we like to say ‘property investors’.