Harcourts Move – August 2022 Update

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

If you haven’t noticed, we are currently experiencing a very broken investor system. With so many market forces contributing to this situation, it is an incredible challenge for all of us and the team at Harcourts Move are here to help you and your questions as best we can.

The rental crisis that is on the news cycle almost daily, is highlighting the dire circumstances renters are experiencing as their household budget blows out with inflation increases.

Vacancy rates are at their lowest ever in Melbourne CBD at 2.9%, and we’re seeing some property owners choose to sell their investment properties as the impact of the Legislation changes last year on minimum property standards takes effect.

Extended delays with the Victorian Civil and Administrative Tribunal (VCAT) handling rental disputes are blowing out. Plus, there is an incredible staff shortage across almost every industry leading to small businesses being challenged to work differently in order to continue to operate. I’m even introducing a 9-day fortnight in order to manage the workload of my team and their wellness while we support our clients. 

It’s certainly challenging times for all of us, and we are here to support you and your investment property as best we can. 

On the streets of Melbourne – Who Gives a Crap – We do!

Did you know that 40% of the global population, and means that around 289,000 children under five, die every year from diarrhoeal diseases caused by poor water and sanitation? That’s almost 800 children per day, or one child every two minutes. 

Believe it or not but toilets have saved more lives than any other invention. Our partner Who Gives a Crap produces recycled toilet paper that we gift box and give to your tenant a gift box on your behalf when they move in.  

Who Gives a Crap donates 50% of their profits to ensure that everyone in our lifetime will have access to clean water and a toilet. So far they have donated close to $11M. We are proud to have contributed to this. If you wish to order their awesome products go to https://au.whogivesacrap.org/collections/all

I can’t believe what I am seeing… sleeping pods to rent for $900 a month!

A property owner in Abbotsford has advertised the sleeping pods as a potential “solution” to the tight rental market in Melbourne.

There must be some merit to this as according to The Guardian, all the pods are full! Who would have thought that sleeping like an astronaut would be so appealing…

Is there a limit to my rent increases?

In a competitive rental market, rents can increase at an exponential level and can sometimes lead to negotiations in rental prices and some properties being out of reach.

Read the key considerations of rental increases here.

Renovating vs Selling. Which option should you choose?

Making the decision to either renovate or sell can be a tough one, especially when the sales market becomes quieter.

Read about the things to consider when you are weighing up the renovating vs selling debate here.

Manage your investment with Harcourts Move

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 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 stay warm! 

Sadhana