Armidale Property Management Wrap Up June 2021

The economy continues to drive forward, with low interest rates, the fear of missing out, and strong demand from investors. Armidale is fast becoming a hot spot for investors who are seeking to neutral or positively gear their investment. With weak wage growth set to continue, the Digital Finance Analytics show that more than 41% of NSW households are in mortgage distress. According to the ATO, negative gearing has fallen below 60% for the first time on record. This statistic is recognisable in the New England as we have been hit with an influx of investors searching for positively geared property.

A possible change to Stamp Duty is set to increase investor activity in the property market and further stimulate the economy. The Australian Construction Forum has forecast that surging land prices along with possible stamp duty changes will shift investors from detached houses back into apartments, triggering a boost in new apartment construction over the next four years.

“Our property management philosophy is simple – to minimise arrears, vacancies, and expenses, and to maximise your return”

In the local rental market for June, we have seen a slight decrease in demand with the number of weekly inspections and applications received all being down in comparison to May. This is expected as we enter the winter months however Professionals Armidale average of 7 properties per week being leased has not changed.

Did you know that the ATO estimates there are 2,227,194 property investors in Australia? 19% of these investors own 2 properties and less than 1% own 5 properties or more. Many successful property investors and experts expect these numbers are because of the financial pressure associated with owning a negatively geared property. Knowing your numbers and growing a sustainable portfolio of positively geared property could be an easy fix for this problem.

For more read our monthly newsletter to landlords: Pro Arm Landlords Newsletter June 2021.