Winter blues keep a lid on rentals
The property market often goes in to mini hibernation during winter, especially in the southern states. However, all markets are not the same and an insider’s knowledge is vital when we are trying to understand what’s happening out there.
Melbourne, for example, is renown for its softer rental market during winter. Typically, Melbourne tenants do not want to move, instead they stay put and hunker down against the cold. However, if they do move, they demand extra comfort such as central heating, new appliances, modern bathrooms. The standard older or period style home is not usually their first choice, unless it meets these “winter” requirements.
In contrast, Sydney rents stay steady but often the number of tenants increase, causing landlords more wear and tear on facilities for the same amount of income. Rather than three people sharing a home, it will be four people moving in.
While in Brisbane, winter is often the time when tenants start to rethink their financial position, with many deciding they can buy a home for a similar price to renting.
Instead of being busy out enjoying the warmth and sunshine, Brisbane tenants are sitting around their kitchen tables with their calculators deciding when to buy. Needless to say the opportunity for rental growth tapers off during this period.
But as we know, the sun does comes out again! Stay warm.
Until next week