Migrants struggle to find accommodation in Perth

Migrants finding the accommodation search difficult

By James Limnios
Thursday, 22 November 2012

If you've recently moved to Perth for work, or to settle down, finding permanent accommodation close to the city is proving difficult. Even apartments in the city have a very low vacancy rate, so you have some stiff competition when applying for a rental.

We've found recently (at least, at Limnios Property Group) that one in three applications for rentals are from migrants or people from out of state, and they might not have the rental history in WA to get that rental.

There are plenty of rentals in the outer Perth suburbs, so keep that in mind, however if you intend to use public transport then make sure you do your homework. If you are set on applying for something inner city, then be prepared for something less attractive, however the benefit is that it will be close to all the popular amenities Perth has to offer.

See my last post about compiling a renter's resume, as this can give you the edge in your application!

To read my full article about newcomers to Perth finding accommodation, visit the Property Observer website.

A Renters Resume

A Renters Resume

James Limnios | 16 November 2012

People moving to Perth for work are going to be surprised that it’s a tough rental market out there, with less than 2% vacancy rates in general, falling to below 1% in the inner city areas. I’ve mentioned before that there are 1000s of people arriving in Perth every month for work, or to look for work, and unfortunately with the fierce competition out there, not many of them are going to find a suitable home at the right price.

If you are moving from interstate, or even overseas, a good renter’s resume is something that you should compile before you start looking for accommodation. It’s not something that has been needed in the past, but those days are gone, and available rental properties are getting rarer; you need something to give your application the edge.

1.              References

Make sure you have the most up to date details from your previous landlords and property managers for reference. A written reference from these contacts will be invaluable and show your new prospective property manager that you mean business. If you have never rented before, get references from your university housing manager or written professional references about your character. It may not seem relevant, but it will give the landlord something more to go on, and help them put a face and personality to your application.

2.              Work History

Renting a house or apartment is like looking for a job, so include your professional history on your renter’s resume. This shows a few things; firstly, that you have gainful employment and shows how long you have been in the workforce, secondly it shows another insight into who you are.

3.              Credit Report

If you can get your hands on your credit report, this will save the landlord and the property manager some time and effort in evaluating your application. If your report isn’t as rosy as you’d like it, then you have an opportunity to get your affairs in order before you start applying for properties. If it’s golden, then it’s another feather in your cap for your application.

Some of these details will be repeated on the official REIWA application, but if let them know you are serious, organised and prepared, then you will stand out and make a good first impression.

How should I choose a Perth apartment for investment?

How should I choose a Perth apartment for investment?

James Limnios | November 2, 2012

Buying an apartment for investment purposes can be a bit of a mine-field. Perth apartments are on the rise, but you have to make sure you find one in a great location so that you'll have prospective renters lining up. 

Look at the location; is it in a quiet street? What amenities are within walking distance? Is there transport available nearby? Some of the other things to look at include the age of the building, and whether the apartment is an upper floor or ground floor dwelling. If there is a lot of work to be done on the apartment itself as well as the building, ask the questions of the strata management to see what's in the works.

I recently published an article about this in depth here at australianpropertymarket.com.au so have a look and read more about choosing an apartment for an investment.

Rent Increases in Perth City Properties

October 23, 2012

By James Limnios

 

There is a huge demand on rental properties in the Perth inner suburbs at the moment, which means that rents are going through the roof. At time of writing, the average rent for an apartment in the city is about $100 more than an average house in a neighboring suburb.

At Limnios Property Group, we have about a 1% vacancy rate for inner city apartments, which is putting huge pressure on the market. It's not all bad news, as this is a great time to invest in these properties to give the rental market a boost.

To read more about the rising rent prices in Perth, click through to my article "Inner City Rent In Perth Skyrockets" on the Real Estate View blog.

City Link Project Needs To Re-Vamp Fitzgerald Street

October 5, 2012 

By James Limnios

Perth City, and Northbridge are currently going through a bit of an 'in-between' period, where the facelift process is only part way through. All the changes and upgrades are definitely welcome if we want Perth to look great on a world stage. 

The $3 billion City Link project is one of those projects that has the potential to revitalise the city and it's surrounds, but in looking at the areas they are concentrating on, it seems that some have been overlooked.

Key arterial roads into the city, such as Fitzgerald Street have remained untouched for up to 50 years, making the popular area leading into North Perth a bit of an eyesore. There isn't much housing and there is a high amount of unused commercial buildings dotted along the way. 

If we re-vamp this area in time for the City Link's completion, then it will bring the project together beautifully. Look what a re-vamp has done for East Perth and the Tunnel overhead areas.

Read more about the City Link and what we should be doing to revitalise key areas of Perth in my press release to real estate buzz.

Dear followers I am seeking feedback on your opinion regarding urban infill vs greenfield development? My personal opinion is that it's very unhealthy for usto promote the "urban sprawl".

It's healthier physically and mentally to encourage our population to live within activity and transport nodes. We are not designed in most cases to be loners! We need people and love to be with people!

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Ask the Expert

Insights into buying inner-city units

Job Hopping Culture

We need to be conscious of the "job hopping" culture that is alive and well in Australia and in particular WA. Stability says a lot about a persons character.

I was very impressed and moved at today's Telethon function where the funds were distributed amongst 39 worthy charities! Mr Kerry Stokes well done and well spoken! We should all do whatever is within our power to make sick kids lives better!

Upgrade roads to city, agent urges

Surging rental yields to result in new generation of inner city residential developments

SURGING RENTAL YIELDS TO RESULT IN NEW GENERATION OF INNER CITY RESIDENTIAL DEVELOPMENTS

The property investment market for the inner city residential area is now being giving a major boost due to surging rental returns for apartments and units.

Figures produced by Australian Property Monitors show that Perth has the fastest growing rental yields for apartments of any capital city in Australia according to James Limnios, CEO of The Limnios Property Group.

Mr Limnios said the inner city property market was entering a ‘perfect storm’, similar to conditions in 2004/2005 which preceded the last property boom.

Mr Limnios said that rental yields for apartments and units during the last year in Perth jumped by 13% which was nearly four times as fast as Sydney (3.8%) and three times higher than Brisbane (4.2%).

 

Source: Australian Property Monitors

“Rental yields for apartments in Perth (5.16%) are now higher than Sydney, Brisbane and Melbourne and I expect this trend to be translated into greater activity by developers building residential complexes in Perth to cater for the growing demand for stock by investors. However, it takes a significant period of time for apartment developments to gain necessary approvals and complete construction so demand will outstrip supply for the foreseeable future.

“Based on current trends, Limnios Property Group projects that rental yields will increase by more than 10% during 2012 based on competitive property prices and surging weekly rents.

“The last time rental yields surged by similar high rates was during 2004/2005 when there was also a server shortage of properties for lease which inturn resulted in a property boom as investors surged back into the market during 2006/2007. Astute property buyers should now be purchasing properties while they are still competitively priced and pre-empt the market,” he said.

Mr Limnios added that typical home opens for rental properties in the inner city were now attracting on average more than 20 visitors. 

“Our company is now finding that typical two bedroom apartments which rented for around $450 in early 2011 are now achieving weekly rents of $520 in early 2012 – an overall increase of 15% in weekly rents.

“A major reason for this growth in weekly rents is that the supply of inner city apartments has been relatively limited over the last four years due to the impact of  Global Financial Crisis and developers have found it challenging to secure funding from financial institutions for new apartment projects.

“Over the last year our rental vacancy rate has fallen from above 5% to nearly 0% because of the influx of people moving in the city centre. These people are mainly sophisticated city dwellers who wish to enjoy the unique lifestyle that inner city living offers.

“If the demand for rental accommodation continues to outstrip supply at current rates, then the median weekly rents for residential properties located within a 5 kilometre radius of the Perth CBD could increase by up to 15% during the coming year.

“Limnios Property Group is now recording a rental vacancy rate of just 0.3%. Our company has been managing rental properties in the near city area for approximately 40 years and this is one of the lowest rental vacancy rates we have registered during this three decade period.

“Over the last year our rental vacancy rate has fallen from above 5% to nearly 0% because of the influx of people moving to Western Australia due to the massive new investment in the resources sector. Historically, these new migrants favour near city areas to rent a property because it is closer to the CBD.

“Most of the growth in this median weekly rent has occurred during the last six months due to the rapidly declining vacancy rates over this period.

“At current rates of rental growth, investors will be able to purchase an inner city apartment with the view to quickly positively gearing property.

“These surging rents will attract property investors back into the inner and near city market during the coming year especially as interest rates are expect to fall even further,” he said.