You can’t argue with numbers, and the numbers are showing that property investors are selling up and tossing their landlord’s hats away, clearly a prospect which is causing anxiety for many tenants.
New research by the Property Investment Professionals of Australia (PIPA),indicates that 12.1% of property investors sold one or more of their rental properties in the past 12 months, with just 24% bought by another investor compared to 33% the year before.
That may not sound too startling, but in comparison 16.7% of investors sold one or more properties in the previous TWO year period, so the declining availability of rental properties is on an upwards trajectory.
The rental shortage is felt Australia-wide but more heavily in Victoria where 31.35% of the rental properties sold in the past year were located. The survey also showed that 57.4% of investors named Victoria as the least accommodating state for property investors.
PIPA’s research suggests the reasons for landlords selling up include increased taxes, legislative rental reforms, rising interest rates, the need to reduce total borrowings, talk of rental freezes or caps, and positive selling conditions.
Despite those concerns, 56% of Australian investors still believe now is a good time to invest in residential property, giving tenants a glimmer of hope.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
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