By Nicola McDougall, Editor, The Female Investor
This time last year, investors reported being optimistic about the year ahead – given strong property markets as well as healthy rental markets.
Now, probably, not so much.
Property prices are softening around the nation and rental markets are in crisis because of the critical undersupply of properties. Plus, interest rates have been hiked up so quickly, it’s about to hurt many people financially.
We are also starting to hear of tenants simply refusing to leave when given legal notice to do so – perhaps because the owner of the property wants to sell it or even move back into it themselves after a relationship breakdown – because they are struggling to find another property to rent.
This refusal to vacate means the investor and their property manager have to seek official intervention from the relevant tribunal who inevitably issues an enforceable eviction notice, which will require a tenant to leave… unfortunately with a black mark inked against their tenancy history.
Of course, investors do not want to cause distress to their tenants, however, as the legal owner of the property they do have rights to the usage and control of their real estate – as long as they remain within the bounds of the relevant tenancy legislation in their state or territory.
As well as these issues starting to appear, it seems that many investors are starting to question whether it’s really even worth it in the long run – with anecdotal evidence staring to show that many sold their properties over the past year or two.
The 2022 PIPA Annual Sentimental Investor Sentiment Survey is now open and is the best barometer of what investors are thinking and feeling about the sector now and for the year ahead. Please have your say if you are an investor!
Last year, as I’ve mentioned, it was all sunshine and rainbows, but when the results are analysed in coming weeks, I am starting to believe that we will see a dwindling volume of investors.
They are selling up because they are sick of being seen as the bad girls and guys of the property sector and perpetually being blamed for high property prices (when it’s emotional homebuyers who pay silly prices) – and they are tired of stumping up more and more fees for the “privilege” of owning of one or perhaps two investment properties.
I know the feeling.
