Australia recorded a national vacancy rate of just 1.0% in June, according to SQM Research, which means the rental market is strongly favouring property investors.

Over the past 12 months, the vacancy rate has fallen from 1.7% to 1.0%. As a result, there is now only one vacancy for every 100 rental properties. Which is great news for investors. 

Extraordinarily, the vacancy rate is even lower in six of the eight capital cities.

When the vacancy rate is so low, it's easy for property investors to find quality tenants for their property, because demand is so high. In that kind of landlord's market, rents tend to rise, because tenants are willing to pay more money to ensure they have somewhere to live.

If you are looking to buy an investment property, the Finance Co. Group can help you secure finance. While prices are softening in some markets, that can actually be a blessing in disguise, because it means you’ll face less buyer competition.

If you’re wondering whether it’s cheaper to buy or rent, a new report has answered that question.

It’s currently cheaper to buy 27% of homes in Australia, according to PropTrack, although the numbers vary significantly from state to state:

• Northern Territory = 98% of homes are cheaper to buy than rent
• Western Australia = 62%
• Queensland = 51%
• Tasmania = 41%
• South Australia = 34%
• ACT = 29%
• New South Wales = 9%
• Victoria = 7%

PropTrack’s analysis relied on a range of assumptions, including that buyers would pay stamp duty, put up a 20% deposit, pay a mortgage rate of 4.62%, experience capital growth of 3% per annum and hold the property for 10 years.

While PropTrack found 27% of the overall housing stock is cheaper to buy than rent, buying turned out to be the cheaper option for 31.2% of three-bedroom houses and 52.6% of two-bedroom units.

Wondering whether renting or buying would be cheaper for your personal scenario? If so, reach out and I’ll be happy to crunch the numbers for you.

With nterest rates almost certain to rise further, it would be wise for households to plan ahead. Here are some ideas:

• Pretend your interest rate is 1.50 percentage points higher – pay the difference into an offset account, a redraw facility or a special savings account, so you’re prepared if rates do reach that level
• Reduce discretionary spending – holiday domestically rather than internationally, go out less, cook more meals, switch from Ubers to public transport, buy less ‘stuff’
• Increase your income – ask for a raise, switch to a higher-paying job, do more hours, start a side hustle, rent out a spare room in your home.
  
  If you need a new loan, want to refinance or just need some expert advice, get in touch and I'll be happy to help.