Its become desperation out there for Brisbane property investors – having to find renters!
Oversupply is a bitch. And its having iPad puppies – more from Brisbane Times (h/t to reader Jeremy Churchill)
iPads, rent-free periods and vouchers are being used as incentives to attract renters as lessors struggle to fill their investment properties in Brisbane.
A two-bedroom apartment in Kangaroo Point, listed at $399 on domain.com.au has offered a $300 Coles Myer gift card to the prospective tenant, an incentive Ray White South Brisbane rental manager Amy Hindes said stemmed from the supply of rental properties outweighing demand.
“There are iPads when they move in, you can do one week or two week rent-free periods, I have seen a few do $200 towards removalist costs,” Ms Hindes said.
“Given the amount of units that are available, the market has changed in vacancy rates, they are offering incentives to get the properties leased.”
Ms Hindes said the increase in developments around Brisbane city was one of the factors driving the oversupply of rental properties on the market and said incentives were usually offered if the lessor decided not to lower the rental price.
I would dare say this is really about debt serviceability and the fact you can write off the freebies as a deduction anyway, which the article doesn’t even consider.
The usual supply/demand response is price, not petty incentives. Is this the first sign before prices actually come down? Asking rents in Brisbane are barely tracking higher in the last 12 months according to SQM, with almost no price increase for smaller apartments in the last 3 years:
The “3% annual growth in rent to move into positive gearing phase” ain’t happening for a lot of investors. Now they may have to, gulp, stop treating their tenants – actual and potential – like 2nd class citizens.
First they gave them iPads, then gift vouchers (hopefully not from Dick Smiths), then moving costs.
What’s next? Actual rights like the ability to hang a picture, have a pet or Dog forbid, be able to live peacefully without constant and degrading inspections. Or heaven forfend a 5 year lease?
Melbourne, this is your future with your sky filling brace of empty apartment blocks.