With vacancy rates in all capital cities now below 2.5% and investor activity down, BIS Shrapnel is predicting a housing shortage with dire consequences over the next 5 yrs. Senior project manager Jason Anderson believes that strong population growth supported by increased overseas migration would push demand for new homes, particularly for rental property use, up to about 165,000 in 2006/07, leaving a shortfall of about 22,500 homes. As a result, rents in Sydney are forecast to rise five per cent this year and by as much as 40 per cent in the next five years. Sounds good news for us investors whose increasing out of pocket costs need to be compensated for in the future
hi Jacque it doesn't need bis to work out that there will be a shortage the sydney domain tells you that and to be honest last january blind freddy should have seen this happening in sydney you will start to see today tonight with breaking news, next saying that a rent crissis is about to happen in sydney, well for me its already past that point we are already in the rent rising phase and the next news will be rent rates in inner sydney jumped 20% again thats old news they have already done that this last 6 months. I have real estate that I talk to that have increased there whole rent roll by 15% and its going to go higher. in 2005 $350 to 380 it was now at $450 for a 2br in marrickville and will hit 600 before 2008 just by demand so grab your hard hat and sail along for the ride. and if you have the properties at around 60% lvr's watch those equities climb. you try to catch those waves. this wave for me started about jan this year and has been building and its still building you will need to be in a bit of a hurry if you want to catch it as you need to be in the area of the largest critical demand. have fun
