The Real Estate Institute (REI) of NSW has just released their Vacancy Report for March 2019.
At a glance:
* The March REINSW Residential Vacancy Rate Report has revealed an increase of 40 basis points in vacancies across Sydney, from 3.2 per cent on 15 February, to 3.6 per cent on 15 March.
* Sydney Rental Vacancies are on the rise.
But what does that actually mean? And more importantly, what does that mean for you as an investor ?
Data on the proportion of the housing stock owned by investors and owner-occupiers is not readily available. However, data on household's tenure type from the Census is a good proxy.
Census data that the total number of dwellings in the greater Sydney area is in the order of 1,955,000 dwellings. Of this figure owner occupiers account for 68% of the stock, the Government owns 5% with the remainder being investment properties. Therefore there are approximately 528,000 investment properties in the greater Sydney area.
Adopting the REI’s vacancy figures we can see that in February approximately 16,891 dwellings were vacant, with the number increasing to just over 19,000 dwellings in March. The number of vacant properties increased by 2,111 in one month !
On the surface, this appears the change could be due to former renters purchasing properties, however, we believe that the change can also be traced to new 'unsold development stock' coming online, with renters preferring to live in newer housing. Your property is now competing with brand new accommodation that is priced closely to yours. This is a canary in the coal mine for you.
What You Can Do !!!
* Keep on top of repairs no matter how small;
* Ensure your property is bright through effective use of painting and carpeting colours;
* Make sure your kitchen and bathroom are usable, clean and as modern as they can be;
* Market your property across as many cheap and effective marketing channels as possible;
* Critically make sure your property is PRICED CORRECTLY a few weeks vacant will have a big impact on your annual cash flow. Why not consider a small weekly discount to allow your agent to secure a quality tenant.
Want To Find Out More
Want to find out about more strategies for your property investment? Why not send me an email email@example.com and we can arrange a time to chat.
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