Warning for Australian Property: Cracks are appearing in the rental market

The pace of rental inflation is NOSEDIVING. In Sydney, its going backwards.

At this rate, it will be going backwards across the country in a matter of months. For property investors, this trend is one of largest risk points in 2024 and points to danger signs for the year ahead.

In this video I go through:
1. Why rents are so important to property valuations
2. What is happening in each state – and how big the problem is where.
3. 5 reasons why rents are falling, and how investors are driving rents down now
4. What this all means for the year ahead

The 39% increase in rents over the past 4 years has been the no 1 reason why property prices are at their PEAK level, despite the massive jump up in interest rates. Without this increase, property investors wouldn’t be falling over themselves trying to buy property. And property prices wouldn’t be rising.

👉 Ready to find your next property, review your finances & grow your portfolio?

💬 What do you think? Are rent's going to continue falling in the months ahead, or is this just seasonal data?

#propertyinvestment #sydneypropertymarket #interestrate #rentalincome

[OscarOwenn]

Without doubt, this year is worse than the previous one. This year, I lost a lot of money due to poor investing decisions that I would not have made if I hadn't been so concerned about my portfolio. I kept investing, but I wasn't sure if I should begin saving for a house. Now, I sold everything I owned, and the house needed more care than I thought. I don't know how much longer I can go on like this

[danielirvine]

Great video Redom! Really well explained!

[williamcrossan]

I think Brisbane rents are up 58% since 2018. Rents typically have risen about 0.7% per year above income growth. It's not surprising that the rent growth would stop. It's already so far ahead of the income growth.

[coreyjohnson]

No.your money is worth half its value, everyone is looking at this problem upside down

[helenkennedy]

Rents are not going down in Sydney. My rent increased a year ago by 25% and just got another letter to say it will be going up another 18% next month. I’m struggling to cover the last increase and have had to cut back on some things like meat. Not sure What I’m going to do to cover the new increase. The thing that is more frustrating is that I’ve done things to improve the property (with permission from the owner) like installing insulation, built flower gardens, and fixed or organised fixing of minor repairs myself.

[maycoltreminio]

Rents prices will ease when demand eases and the cost of servicing a mortgage goes done - interest rates, etc. Rents are due to stabilise/correct to a certain extent, but saying it will nosedive is a little dramatic. Plus, there is still a huge shortage of homes across most states, so it's unlikely you will see rent prices nosedive.

[roxychic]

I’d like to see wages increase in lockstep the charts showed a problems there real wage growth is part of the problem too

[ashdivakaran]

I have one investment property and I’ll be happy if rent drops if it eases the cost of living for everyone

[Julian]

It’s called a correction. Maybe rents will stabilise but it’s not due to landlords, the market creates the cost - just like you implied that it’s too expensive now so it’s going to drop.

When you have council rates, water rates, land taxes, insurance, maintenance costs and interest rates all increasing it’s going to put pressure on rents. If there were two seperate bills sent to tenants, one being rent and the other being costs, tenants would clearly see why overall everything is going up.

[jameslay]

Migration is too high. Too many people not enough houses. Perfect for investors

[nodocs]

not sure wer ur getting ur data
ive raised the rent on our investment property 3 times in the last 2 years - still have room for more
A workmate just had his rent raised by 30$ per week
Melbourne

[sometingwongwai]

Why do all you property guru assess it like an index, description more suited a mortgage back security index fund?? How does it relate to a particular property in a unique location near unique facilities? State averages bears little indicators. Would you by a particular share purely based on the ASX index??

[humanbeing]

Correction, it's not about rent, it's about Jesus our Savior

[NomIs-mkjy]

My rent went up $800 a month, I moved out and they haven’t been able to rent it out for 3 months
Greedy landlords!! 😂😂😂

[chippyboy]

Rents are not going backwards in Sydney.

[ashdivakaran]

I have one investment property and I’ll be happy if rent drops if it eases the cost of living for everyone