Armidale Property Management Wrap Up May 2021

The vast majority of our new Landlords are metropolitan buyers, from the Greater Sydney Region in particular. Investors are identifying Armidale as a stable, long-term economic climate that provides a strong return on investment with a number of properties still showing a 6% gross yield.

Tenant demand remains strong in the New England as we continue to see multiple applications presented on our vacant properties. Within 48 hours (Wednesday 26th – Thursday 27th) our agency leased 9 properties. The real estate industry benchmark of 3% vacancy continues to be smashed as new SQM research shows vacancies well below 1% in most country towns and regional cities.

Corelogic reports that the national rental market staged a 3.2% rise in rents between January and March, the fastest quarterly growth since May 2007. Regional NSW continues a strong run with rents climbing 4.1% this quarter, after rising 2.9% in the previous quarter.

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

The RBA forecasts unemployment to fall to 4.5% next year which would be a fourteen-year low, however, insists that record low-interest rates will remain for a further three years to help drive up wage growth. The RBA further reports that investors are flooding the property market with a 12.7% increase in investor lending for the month of March, the largest rise in almost two decades.

Following the recent budget announcement earlier this month, people aged between 50 and 64 are most likely to downsize which could trigger $10 billion in property sales next year. A new scheme allows downsizers aged over 60 to contribute $300,000 to their superannuation. They must own the residence for at least ten years to qualify. A further incentive has been released allowing single parents to purchase a home with a modest deposit of 2%. The Family Home Guarantee program commences 1 July 2021.

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