We’ve seen quite a few changes in the Victorian property market in response to the current Covid-19 pandemic. One of these change that seems to have caught quite a few property investors off-guard has been a reversal of roles in the rental market in many areas of Melbourne.
Whereas just a few months ago we were seeing a rental market where demand exceeded supply and tenants were being forced to compete for limited available rental stock, we are now seeing a situation where a growing number of Melbourne rental properties are being offered at discounted rents as landlords scramble to secure tenants in a weakened economy.
In recent weeks we have noticed some rental properties being advertised at a reduced price for the first three or six months of the lease, with rents to revert to their previous level after that time. In other cases, properties are being offered with incentives of the first two weeks rent free.
These moves are happening against a background where many Property Managers around Melbourne are being inundated by calls from tenants worried about their ability to keep paying rent after having been laid off or made redundant, and landlords worried that the uncertainty will impact on their ability to service their mortgage loans.
As we pointed out in our MARCH MARKET UPDATE, With the Banks currently taking a flexible approach to households affected by job losses and the Government’s relief measures providing some support in the short term, the full impact on the property market may not be felt for some time to come.
What we can say with some certainty is that now more than ever, it is so important to have an experienced Advocate by your side when making decisions about an investment property. Whether you are looking to take advantage of the current market to purchase a rental property at a discount or making decisions on what to do with an existing rental property, the right advice can make a huge difference to your investment.
So if you are looking for experienced advice and guidance in an increasingly complicated market, don’t hesitate to call the team at Ian Reid Buyer Advocates on 1300 400 400, or go straight to the IAN REID BUYER ADVOCATES WEBSITE.