Professionals Armidale 
Professionals Armidale leased 22 properties for the month of July, which resulted in a vacancy rate of 0.49% for the month. Our team received a total of 166 applications for the month.
Our Property Management department achieved an outstanding 69 lease renewals. 79% of our lease renewals received a rent increase outlining the strength of the current rental market.
Research Director for ratecity.com.au, Ms Sally Tindall, commented that a cash rate increase of 0.50% looks almost certain on August 2nd. If this prevails, the average borrower with a $500,000 mortgage will pay $472 per month more than they were in April 2022.
“Our property management philosophy is simple – to minimise arrears, vacancies, and expenses, and to maximise your return”
Both ANZ and Westpac banks are estimating the cash rate will increase to 3.35% within months. This would see an increase of 3.25% for 2022. If this forecast is realized, a borrower with a $500,000 loan could see their monthly repayments rise by $908 per month, since February 2022.
How will the interest rate rise affect property prices? If past performance is anything to go by, prices will not be dramatically affected. According to a study completed by PropTrack, there have only been five years since 1990 where the national property price growth has been negative. These downturns have never exceeded 10% in year-ended terms. The largest national price drop since 1990 was 2018/2019 when property prices fell 5.5% over a 13-month period.
For more, read our monthly newsletter to landlords:
Professional Armidale Landlords Newsletter – July 2022
By Jamie Williams
Director
Head, Property Management / Investment Specialist
Professionals Armidale
M: 0481 173 322
P: 02 6772 4549
