On today’s Soho Carpool episode, Matt King from McGrath explains why now is a good time to be a tenant.
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Here’s the transcript of the video:
I just want to touch on some rentals at the moment. What are you seeing in the rental side of the real estate market in your marketplace? Have they been flat for a while? Do you think they’ll kind of pick up ? What do you see? Such a good question. I think it's another example of the supply and demand scenario on at the moment in the rental market. There's an oversupply, so great time to be a tenant, great time to renegotiate with your landlord if you are already an existing tenant because suppliers had such an impact that you know, we are not getting the yields that we once were. The good news, as a result of their being such a high volume, there aren't as many projects being built. So I think landlords are going to be able to capitalise on that in the next 12 to 18 months. I think we'll start to see some upward pressure again on rent. So for right now, it's certainly in the tenant favour, but I think that with the, you know, the lack of new product coming out of the ground we're going see that demand start to pick up and rental yield start to increase and I think as a result the capital growth’s definitely going to be there based on where we see the market going. So for all of those reasons, it's still a good time to be an investor. You don't want to wait until the market’s peaked and booming. But I think you've got to go in with eyes wide open and understand that you're probably not going to quite get the yield that you would like initially, but then that will increase and conditions will improve.