We’re experiencing unforeseen circumstances outside our control, so we’ve invested a lot of time into investigating and researching the local market and compiling the facts and data below and attached report so you can make educated, well-informed and strategic decisions. The information and situation are overwhelming, so please let me know if you have any questions.
Kelvin Grove Market Snapshot
COVID’s most significant impact on the market is the inner city unit market with Airbnb and Hotels converting from short term to long term accommodation. The sudden influx of stock has significantly diluted the market with supply far outstripping demand.
- There are currently 4 other similar units advertised for rent in your building*.
- There are presently 113 units advertised for rent in the suburb of Kelvin Grove*.
- The attached Current market Analysis report details 34 directly comparable properties (1-2 bed, 1-2 Bath and 0-1 Car) currently advertised for rent within 500m.
- The snip below (bottom) shows how the Median Asking Rents and Indicative Gross Rental Yield dropped off due to COVID with owners like you and agents like Bluestone experiencing first hand that the trends have continued which will be confirmed when CoreLogic update the data.
- Quest Hotel is possibly about to give us another 20 – 34 units to rent at 10 – 20% below market value**.
- Suburb Snapshot
- The following statistics apply to Units in KELVIN GROVE*
-
-
- Median Days on Market is 46 days vs. Brisbane 23 days.
- Kelvin Groves Vacancy Rate of 4.9% vs Brisbane’s 2.2%
- Median Asking Rent for KELVIN GROVE is $402 per week vs. Brisbane $400.
- *Statistics are calculated over a rolling 12 month period.
-
Ultimately whether property rents or not all comes down to the rent that you instruct us to advertise, and with Supply and Demand dictating rents, investors must meet the market on price and list at market value**.
**What is Market Value? – “The highest price a Ready, Willing and Able ‘Tenant’ will pay, when not forced to ‘rent’ from a Ready, Willing and Able ‘Investor’ not forced to ‘Rent’ for a property that has been adequately Exposed to the Open Market.” – Spencer vs. The Commonwealth 1907 (‘sales’ references converted to ‘rental’).
The Rental Comparison Case Study below:
- Uses reliable data to show the financial benefits to advertising property for a lower rent subsequently renting it out sooner than trying to achieve a higher rent consequently taking longer to rent the property, i.e. Lower weekly rent with short vacancy period = more income Vs higher weekly rent with long vacancy period = less income.
- Highlights the difference between pricing strategies, i.e. high rent = low occupancy = lower yields/returns Vs lower rent = high occupancy = higher returns/yield:
Bluestone Property Management & Sales is the real estate agent that savvy Investors use when renting out their rental property/properties in Brisbane Queensland (QLD). Why because Bluestone’s Property Managers maximise the rental yield and minimise the stress involved in managing their units, apartments, townhouse and houses. Additionally, Bluestones Property Management Fees (commission charges) provide excellent value for money, so if things aren’t stacking up with your current agency give the Team at Bluestone a call.
Investment Regards,
Mark Shorrock
Managing Director & Principal Licensee
Bluestone – Property Management For Wealth Creation
M: 0439 979 095 | mshorrock@bluestonepm.com.au
Office Mobile (call or text): 0422 676 416
3/269 Abbotsford Road, Bowen Hills Q 4006
WHY BRISBANE WILL OUTPERFORM AND RECOVER QUICKER THAN SYDNEY AND MELBOURNE MARKETS
There is always someone willing to manage your property cheaper, and you get what you pay for!
WARNING!!! – Cheap Property Managers Can End Up Being Very Expensive!
WARNING!!! – Cheap Property Managers Can End Up Being Very Expensive!
Disclaimer The information provided by Bluestone Property Management is of a general nature only and is not intended to constitute legal advice under any circumstances. Individuals should consider their own circumstances before proceeding to rely upon any information provided by Bluestone Property Management. Whilst care has been taken in best practice advice provided, and the information contained in it has been obtained from sources that Bluestone Property Management believe to be reliable, Bluestone Property Management (including its directors, officers, employees and contractors) does not warrant, represent or guarantee the accuracy, completeness or fitness for purpose of that information. Bluestone Property Management (including its directors, officers, employees and contractors) accordingly does not accept any responsibility, liability, loss or damage whatsoever resulting from the use of the information provided. By using the services of Bluestone Property Management, Clients acknowledge that they have read, understood and accepted this disclaimer of liability.
The post Kelvin Grove Market Snapshot appeared first on Bluestone Property Management & Sales.
No comments:
Post a Comment