Professionals Armidale 
In April, Domain reported the national vacancy rate was only 0.8%, with cities such as Perth, Adelaide, and Hobart essentially reporting close to zero vacancies. Professionals Armidale are ending April with a vacancy rate of 1.4%. Our team leased 30 properties with an average weekly rent of $375.00 down from $405.00 per week in February, which I believe is a fair representation of the market over the past two months.
Australia is heading towards a severe housing crisis, with a projected shortage of 106,000 homes by 2027. High-interest rates, community resistance to new developments and overseas migration are the primary causes of this dilemma. Net migration is predicted to reach 350,000 in 2023, as overseas workers and students return to Australia. Tighter rental laws (that favour tenants) contributing to a mass exodus of investors in the market may also be to blame.
“Our property management philosophy is simple –
to minimise arrears, vacancies, and expenses, and to maximise your return”
A recent Property Update article, written by Kate Forbes, states that there are just over two million investors in Australia, of which, 75% own just one investment property. Approximately 18% own two properties, with only 5% of investors owning three properties or more. There are several reasons why investors get stuck on their first or second property – they don’t purchase the correct type of investment property first, they don’t have a comprehensive understanding of their financial situation or property goals, and they don’t have a clear plan to cover expenses.
A well-thought-out investment plan should consist of:
• Asset accumulation strategy.
• Manufacturing capital growth strategy.
• Increasing rental growth strategy.
• An asset protection and tax minimisation strategy.
• A finance strategy including debt reduction.
• Living off the cash flow of your property portfolio strategy.
When building an investment portfolio, it is crucial to surround yourself with a team of experts including an accountant, solicitor, mortgage broker and real estate advisor/property manager.
Professional Armidale Landlords Newsletter – April 2023
By Jamie Williams
Director
Head, Property Management / Investment Specialist
Professionals Armidale
M: 0481 173 322
P: 02 6772 4549
