The first quarter of 2015 has seen some strong turnover in what is the peak period for
Residential leasing’s. With stock levels up and demand down most investors are asking why
The vacancy has risen and what has driven demand down. There are 3 main factors at play;
- Interest Rates – interest rates are at an all time low. Many investors are taking the opportunity
To purchase residential properties. With strong prospects for population growth and capital growth,
many investors see Newcastle as a great place to invest their money. With this frenzied buying comes price rises.
- First Homes Buyers – with prices being pushed up by the frenzied buying of investors, tenants feel
That now is a good time to buy before prices become too high and they are pushed out of the market.
- The Mining industry – the mining industry plays an important role in Newcastle leasing’s in the first quarter of
Each year. With the downturn in the mining industry we have found that there have been less people transferring
into area for mining and mining related industries. While Newcastle is not reliant on mining and mining related industry,
it does account for approximately 10-15% of our peak season figures.
So is it a good time to buy an investment property? The answer is yes! To limit your length in vacancy period make sure you
have done your research first. Look for properties that tenants find most desirable. Location, features and Condition play a
huge role in determining where and what tenants want to live in. Somethings what people see as luxuries ie Dishwashers,
air conditioning, built-in wardrobes and garaging, tenants see as a necessity.
If you have any questions about leasing, want some advice on what the market is doing don’t hesitate to give Hunter or Mel
A call today 02 4960 0117.