Decline In Rental Growth For Sydney Eastern Suburbs

decline in rental growthThe rental growth bandwagon for Sydney’s Eastern Suburbs has come to a bit of a decline. However, the overall growth rate of 0.8% cannot be thought of as portentous because it does not have to do with any fundamental deficit. Jonathan Chancellor for the Property Observer explains the conundrum.

It is true that anybody who has tracked the rental growth rate for the Eastern Suburbs over the last 2 years will be disappointed with what he sees. Rental growth which was in the vicinity of 13.5% in November 2011 and 7.75% in May 2012 has slipped in deficit of 1%.

Barring Bondi Junction, Randwick and the Rose Bay, no area in Sydney Eastern Suburbs can claim smart rental growth.

Tenants have become a fastidious breed

While figures never cheat, the true cause of decline is the shift in tenants’ perception. It is not too far from a complete paradigm shift. Tenants have become extremely fastidious and they cannot be pleased with the elementary anymore.

Smart renovations can allow you to quote higher rents

The word that defines them is ‘sophisticated’. They are likely to hold you for not undertaking kitchen renovations, choosing faulty insulation methods for your attic, not allowing a north-oriented floor plan for your house, and poor man-environment fit of your home.

You can read the original article here.

Green certification is your merit card

Every now and then you will find tenants seeking green certifications. Green renovation measures, in my opinion, was sought few and far between in days of my adolescence. Today, tenants are seeking it as a top-priority thing.

Energy-efficiency has become not only a crux question but a tenant’s top fancy and a landlord’s best negotiating weapon.

Renovation-oriented landlords to gain

In short, to change the rental growth tide, you do not have to make alterations in fundamentals of economy or bring changes in the laws that govern positive cash flow or rental yields. You just need to become more renovation-oriented.

Are you willing to pay steeper rents if a home has undertaken really worthy renovation measures?