The return on rent is a concern for all property investors, most of whom rely on rent to reduce the pressure on repayment, with the exception of strong buyers who can pay one-off payments.
But not all regions have seen the same rise in rents, such as in Local's favorite regions, where rents have risen so fast, while Chinese rents have largely stagnated.
Renting houses in Chinese district
Most Chinese people like to rent in their own circles rather than looking for rental agents because of their lack of language. In the southern part of the country, where everyone buys a House and sublets it, the competition is fierce.
At first glance on the Australian local Chinese website, about 80% of the sub-lease information comes from the Chinese district. Some House decoration and supporting some, rent 180 Australian dollars per week, some House decoration is worse, rent 160 / week, some House traffic is not very convenient, rent 150 Australian dollars per week.
So it happens all the time: "do you raise the price?" So expensive, then I will not rent "or" rent reduced by 50 Australian dollars, rent for two years, okay? In such a situation, if you are the landlord, do you rent? In this case, how can we raise the rent?
Many Chinese landlords are unwilling to give their houses to rental agents, feeling that the rent management fees of the agents are too expensive to manage themselves.
But we need to know clearly that once the rent is damaged or the rent is in arrears, if there is no intermediary intervention, things will become very troublesome; Instead of facing up to tenants and wasting their time and energy, it would be better to hand over to a leasing agent to help you with everything, and at the legal level, the landlord will be better protected.
Therefore, there is no standard management of the rental market in the Chinese district, we are still in a price war, rent is not going to increase.
Renting in Local district
Australian renting is closely related to housing agents and their habits. When you look for a real estate agent, the agent asks the tenant to provide information such as income certificates, positions, assets, contact details of previous landlords, etc., to control the tenant's quality and quality.
If you can't provide the relevant information, the intermediary will think you are not a high-quality tenant, then you will be considered at the end of the day when selecting the tenant for the landlord. Let's take, for example, your job as an IT engineer, and you can see on the Internet that the IT engineer's annual salary increase is 7.5%, or an average of $100 a week. The contract for intermediary rental is signed six months to one year.
When you get used to the lifestyle of the house, a 20-50-a-week rent increase in the next year will be accepted by the vast majority of people because the quality of life will not be affected by the increase in rent.
The same increase in rent is harder to achieve in the Chinese district, because there are a large number of international students in the tenants' group who do not have any income in Australia, so paying an extra 20 Australian dollars per week will require them to save from other expenses. Nature is becoming more stressful for them.
So if we choose to invest in housing, we should choose some areas where Australians prefer, and try to choose high-end properties that high-income people are willing to rent. Only in this way can the previous period be guaranteed and the rent return will be stable.