Property Management
Abercrombys Investment Insider July 2023
10 July 2023
by Dee Pajevikj
The pessimism with which the media habitually addresses the real estate market ignores the fact that it is a golden age to be a lessee. Those of a socialist bent (Hello journalists.) would decry this as bad news. But those of us who delight in the energies of capitalism recognize it as a healthy indication, a sign of optimism and future growth.
The increased demand for housing coupled with the slow supply has led to a shortage of rental properties, a commensurate decrease in vacancy rates, and a very healthy rental return for landlords.
This is set to continue with Australia’s international borders being opened by the Albanese government to a new age of strong immigration. If history is any indication (and it is) then Melbourne will be a leading recipient of the new arrivals, adding pressure to the rental market here.
Meaning it is a good time to own, or invest in, a rental property. Forget gold, crypto, or shares… becoming a lessee is a more lucrative investment than any of these. Melbourne’s vacancy rates have never, in the city’s nearly two hundred year history, been lower, creating sustained pressure for rent rises. This won’t change any time soon.