The Market – Spring 2018

This newsletter feels like a repeat of the 2018 version!

Rental market - Has Spring helped? 

As we said in 2018, normally the warmer weather brings along a better (in general) rental market. To date, this has still not materialised! Achieving amazing results is not happening right now, and anecdotally, the downturn is 2% – 10% down, even 15% from last year (again, a generalisation). So, put away the rental increase mindset (unless entirely appropriate) and think about keeping good tenants on fixed term leases to ride out the wave. 

Sales market - Up slightly, but is it going to stay up? 

Cautiously optimistic. Still not a great deal of listings, so with that, auction clearance rates and sales figures are in our opinion, artificially inflated. So, to capitalise on lack of stock, maybe its time for an appraisal? 


What’s one simple way property investors can maximise rental income when applying for a new loan?

Sooner or later a property investor will run out of capacity (their ability to prove to the bank they can service a new loan) or collateral (equity/deposit to put into the next deal).

When applying for a loan banks will consider the current and future rental income derived by your property portfolio, but they will shave this amount down to 80% in some cases even 50% (holiday letting and serviced apartments). One simple way to boost your borrowing capacity, if you need that little extra income to bring you across the line with the bank , is to add and include into your tenants weekly rent things like gardening and pool maintenance, cleaning, water rates etc.. This way if the weekly rent you charge is $400/week, once you add the above services it might go up to $450 – $500 per week. Especially If you have multiple properties this could sometimes allow you to get finance for your next deal.

If you have any further questions, I urge you to speak to a specialist broker rather than an automated voice recording – Call Marco Scannone from Stars Broking Services for more; 


Marco Scannone 


Stars Broking Services Pty Ltd


02 8604 4052



02 8076 8660



0405 252 808




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