The property market is currently experiencing a housing boom due to a combination of low mortgage rates, improved economic conditions, government grants and extremely low rental vacancies.
Last year in March 2020 the West Australian government implemented a moratorium on rental evictions and price increases but this is soon to end where tenancy laws will be reverted back to normal. The moratorium was implemented to assist tenants who were adversely financially impacted by the pandemic. Kate McDonald, the Rental Service and Senior Property Manager of Carlin Real Estate explained that “in a lease agreement, rents can be increased every six (6) months but due to the emergency period, this didn’t occur so there is a likelihood of a higher rent increase as the rent was not reviewed as it normally would be”.
But how will that affect the Perth property market?
Once the moratorium ends on March 29, landlords will be able to adjust the rent prices to reflect the current property market. “In the current market, we are seeing increases in rent anywhere between $50 – $150 per week”, said Kate McDonald.
With the strong demand for rental properties, investment property market values will likely increase. There should be no issues finding tenants willing to pay the increased rent as the vacancy rate is currently below 1%. There is an influx of people returning back to Perth or moving to Perth for work, so the demand currently exceeds the available supply of rental properties.
“Our homes that are for lease are leasing by the first home open and we are having an influx of enquiries and people coming to view”, said Ms McDonald, “we had a total of 116 people at a home open in Success throughout the week”.
If you have the available cash flow and equity, you may wish to consider taking advantage of the historically low mortgage rates and property boom to increase your investment portfolio. Speak to one of our award-winning brokers at Launch Finance to review your financial position and the options available to you by calling (08) 9367 4222 or email [email protected]. Alternatively, contact your Launch Finance broker direct.