INVESTORS LEAVING THE MARKET

 Why are the investors selling up their rental properties? 

Well with the Greens threatening to that Capital Gains concessions, deductions for rentals, they want them gone - seriously what sort of people are these Greens???? (thank God they are not in power)

If you take away any incentives for the investor to invest in rental properties (as the Government hasn't built enough) you need to encourage them. The way it's going the renters are going to be paying so much more with rentals getting a lot tighter.

More investors sold their properties in the recent financial year compared to the last, according to the latest data from the Property Investment Professionals of Australia (PIPA).

The 10th e4dition of PIPA's investor sentiment survey has revealed concerning trends in the trajectory of the nation's rental supply, given how property owners are considering their investments.

Even more investors sold a property over the year to August 2024 than they did last year, according to the organisation's research, with about 65 per cent of these former rental properties being purchased by homeowners rather than investors.

Overall, 14.1 percent of respondents sold at least one investment property in the past year - an increase from 12.1 per cent last year.

Of those investors exiting the market, the property was bought by another investor in 31 per cent of transactions. This is up from 24 per cent last year but in line with 33 per cent reported in 2022. Home owners were responsible for buying 44 per cent of the properties transitioning off the rental market, while first home buyers made up 21 per cent of the share.

PIPA chair Nicola McDougall noted that while it was good to see investor participation, their rates of purchase were still below what is required to bring more stock to the rental market and increase vacancy rates.

“Yes, investors are still buying rental properties, but not at the rate that is needed to replace those that have been lost nor to keep up with the rental housing needs of our soaring population,” she said.

Holding costs and taxes exert pressure on investors

Of the investors who sold over the past year, nearly 65 per cent said they had kept the property for less than 10 years. Alarmingly, nearly one in five reported they sold an investment property after holding it for less than three years – a very high rate of turnover and another cause of instability for the rental market.

“It’s clear that investors have not only had enough of being the golden gooses to financially fluff up state government bottom lines, but they also are reacting to the myriad rental reforms and property taxes that now make holding an investment property either unpalatable or unviable for them,” McDougall said.

Increased general holding and compliance costs, such as insurance, minimum housing standards and property management fees, were the biggest cost pressures motivating investors to sell, with 44.1 per cent citing these factors as influencing their decision. The cost pressures of land tax or government charges was the reason 35.4 per cent gave for selling. Meanwhile, 32.9 per cent said they parted with an investment property to reduce their investment exposure.

“Interestingly, increased lending costs was not in the top three reasons for selling (25.4 per cent),” McDougall commented.

To me the Government needs to smarten up and do it quickly as they need to build lots of little homes that are quick and easy to build.

WA is experiencing a lot of investors coming from Sydney & Melbourne as our properties are still cheap in their eyes and our rental rates are showing a good return.

    MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!