Harcourts Move – October 2022 Update

Hello, and welcome to the Harcourts Move update for October 2022.

Last week I was able to catch up with TIm Lawless from CoreLogic for the REIP CoreLogic September market update. September was another interesting month and some of the key highlights include:

• The rate of decline is housing values eased
• The RBA lifted interest rates for the 6th month in a row to 2.6%
• The Albanese Government are due to put out their first budget in the wake of increasing uncertainty in the global economy and falling consumer confidence

September is usually the time when more properties come onto the market for sale – we’ve not seen that trend this year. It’s been quite a slow start  and we’re also seeing renters reach an affordability ceiling.  Hopefully with migration numbers starting to increase we’ll start to see an increase in inner city renters.

Investors should tale this time to consider a capital city purchase that would go well with the increase in rental yields. Watch the video on this link.

I also caught up with Adam Coward from leading national removalist booking platform Muval.com.au recently, who have released the annual Movers index survey results which showed some interesting findings around the reasons that got people moving in 2022. 

Based on hundreds of thousands of mover enquiries and recent survey data, the Reasons for moving house – Muval Index 2022 report findings included:

Top trends that would pressure a move include:

1. 65% would move due to an increase in cost of living
2. 40% would move if rents increased $50 a week or more
3. 27% would move if an increase of 2% pts or more in interest rates

Top trends for what type of move is wanted include:

• 30% would want to upgrade to better house / better location
• 12% want to downsize to smaller house with less upkeep
• 11% want to relocate closer to schools / family

The results are incredibly interesting,  especially from an investor’s point of view. Have a look at the Reasons for moving house – Muval Index 2022 . I’d love to hear what you think.

A recent article from Domain and The Age highlighted the lowest national vacancy rates of 0.9% has resulted in tenants facing the toughest outlook on record for the third month in a row.

The Melbourne rental vacancy rate has held steady at 1.3 per cent – a . A balanced rental market is considered to have a vacancy rate of about 3 per cent. With so much pressure on the rental market, it will be interesting to see where we end up in January which is traditionally regarded as the strongest rental property month. 

On the streets of Melbourne

	Strata fees and your investment Do you know what strata fees cover in your investment? Get up to speed on what you need to know when it comes to your investment and strata fees. Read more here
	Investment property and compliance When you make the choice to invest in property, it is important to recognise and be aware of the areas of compliance that you are responsible for as an investor and property owner. Find out what compliance you need to be aware of in your investment property.
	3 ways to make more from your investment Looking at how your investment property can bring you more returns? A quality investment property in a great location sets the foundations for success – but how else can your investment bring you more returns? Read more here.
	Our team at Harcourts Move are dedicated professionals when it comes to property management. Our property managers understand how the market will impact your investment and how to improve the yield from your property. Find out more.

I hope you’ve enjoyed this month’s newsletter. If you have any feedback, please share it with me. I’m always looking at ways to support our clients 

Thank you for your continued support and remember our team is always here to help answer any questions or share our expertise with you, so please feel free to get in touch at any time.

Until next month, stay safe and enjoy longer days as we move closer to summer!

Sadhana