Investor raises rent up to $140/wk on dozen Qld properties
An interstate investor says he’s had to raise the rent on all 12 of his Queensland investment properties to cope with rising costs, with the highest jumping by as much as $140 a week.
The founder of Sydney-based Cashflow Properties Bharat Patel said “there is a lot more behind the scenes”.
“Rentals have increased since the beginning of Covid-19 in Queensland and are getting worse due to interstate migration,” he said.
“Personally, I have over a dozen properties in Queensland in different locations, and I have raised the rents on all of them from as low as $20 to $140 a week.”
The highest increase, he said, was a Gold Coast property where the market was significantly tight.
“I have raised the rent from $420 to $560 on one of my Gold Coast properties without any issue. Unfortunately, this is how the market is and it will continue to perform due to the ultra-low level of stock and far more demand from interstate.
“Due to the ongoing construction crisis and higher inflation, existing stocks are under enormous pressure. On top of that, overseas people are also considering Queensland as the number one investment hotspot.”
His personal opinion was that “rental caps cannot stop investors from investing in Queensland”.
“It is the most affordable place to live and offers lifestyle changes with its sunny and beautiful weather.”
Mr Patel expected rents to keep rising this year due to low stock levels and high demand across Queensland.
In the last eight months, he’s helped other investors buy around 50 properties “below market value”, with “enough rental income to cover most of the expenses” in Queensland, he said.
“I help investors invest in suburbs where there is tight rental demand. It not only helps to hold your investment for a longer period of time despite interest rate rises but also improves your cashflow as rents are rising every month.”
He said most rents would keep rising until the RBA stopped increasing interest rates, with investors also eyeing the possibility of a mini-recession or economic shock towards the end of the year or early 2024.
“In a nutshell, there are a lot of economic challenges that everyone will face before rents can stabilise, but they won’t come down at all.”
Reference article https://www.realestate.com.au/news/investor-raises-rent-up-to-140wk-on-dozen-qld-properties/
