Landlords cashing in on market revival
April 21st, 2013 by Geoff Baldwin
With renewed strength in the WA market, especially in the sub $600,000 price ranges, more and more owners of rental properties are selling up and transferring equity into their super funds, according to RE/MAX WA Managing Director, Geoff Baldwin.
“With the rental market already under enormous pressure and rents at historic highs this shedding of properties by investors is definitely adding to the problem”, he said.
“Hundreds of tenants are now making the decision to buy their own home rather than continue to be exposed to the challenges of renting but in many cases they are buying stock that was previously available for rent causing a catch 22 situation.
“After suffering substantial drops in values over recent years now is not the time for landlords to be selling their properties as this recovering market has a good way to go before we see the next peak.
“7% to 9% per annum increases in values are historically achieved in a normal, healthy market so there is plenty of upside for investors to hold.
“Obviously now is also the perfect time for new investors to take advantage of rising prices and record returns”, Mr Baldwin said.
Media Contact – Geoff Baldwin