Armidale Property Management Wrap Up July 2021

In the midst of a cold, wet winter, the Armidale investor market continues to remain strong and exceed expectations. As was the case for June 2021, July has seen a steady decrease in tenant activity with the overall number of inspections and applications down compared to earlier in the year. However, once again Professionals Armidale has leased in excess of 30 properties this month. This is due to the limited supply of rental properties available, with Armidale offering only 89 properties for lease on the second to last day of the month according to REA.

The ANZ has released a report stating that if wage growth remains at or above 3% for two or more quarters, coupled with the decline in unemployment, then the RBA will be confident enough to increase the cash rate. Both Westpac and the Commonwealth Bank expect to be at a cash rate of 1.25% by the third quarter of 2023. Any increase would be the first-rate hike since 2010.

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

Domain’s First Home Buyer Report shows the time it takes for a first home buyer to save for a 20% deposit on an entry-level property has increased due to the recent spike in property prices. COVID has transformed demand for housing in regional Australia with average days on market reduced by 48 days in regional NSW. Investors are dramatically contributing to the rise in property prices, increasing the possibility of regulators needing to step in and tighten lending standards. New ABS figures show investor finance soared by more than 115% higher than for the same time last year.

As we move closer to the spring months (selling season) and with the recent lockdown extension for Greater Sydney, what will we see in the months to come? Watch this space!

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

By Jamie Williams