Property Investors Poised To Jump Back Into The Acreage Market

As I mentioned in this week’s Acreage Market Wrap, “there were a lot of changes announced during this past week which caused a few concerns for property investors, many of whom were looking to move their money across to property on the back of the low interest rates and the falling stock market.

There was some confusion for Landlords around the Rent Relief package released by the Federal Government this week and whilst some tenants thought that because they couldn’t be evicted for 6 months that they no longer had to pay their rent, but that’s certainly not the case.

Prime Minister Scott Morrison said that Tenants have to pay their rent unless they can demonstrate a reason not to. The lease is a contract and the obligations within that contract need to be fulfilled.

The plight of the landlord was completely overlooked in the early stages of the Government's announcement but via some good work done by the REINSW and other industry stakeholders, the difficulties for landlords has been highlighted and more should be announced to resolve this issue early next week.”

As predicted, last night the REINSW President, Leanne Pilkington announced that the State Government have made a decision and the NSW Premier or NSW Treasurer will be making an announcement in the next few days to remove the Moratorium for Residential Tenants in NSW, which means that rents still need to be paid, unless the tenant can show hardship and the State Government plans to release a Rent Relief program for tenants who can’t pay their rent.

Real Estate Coach, Tom Panos caught up with Leanne Pilkington about this decision regarding the rental situation.

This is positive news for existing Landlords, especially Mum & Dad investors who may have bought an investment to help with their future retirement plans (who have investment loan repayment commitments which they rely on the rental income for) along with those who are now looking to invest in bricks and mortar as a safer option compared to the current volatility and unpredictability of the stock market.

There are some excellent opportunities amongst the acreage market for investors at the moment and whilst we are currently experiencing a slight reduction in volume of enquiry, I’m finding that the quality of the buyer enquiry that is filtering through has been of greater quality and are more qualified to purchase.

As I mentioned in a previous article, Investors Appear To Be backing The Property Market In 2020 with interest rates even lower than they ever were and now with the market slowing down over these past few weeks, there’s now a large selection of acreage properties available and overall buying acreage has now become a lot more affordable.

Property is still being transacted, for example, our team here at McGrath have sold 190 properties in the last week valued at $185 million, which makes our company amongst one the safest options in the market as we have access to more qualified,  finance approved buyers.

The way that Australia appears to be reducing the spread of the Coronavirus at present appears that there may not be the need to go into a Stage #4 LockDown like New Zealand did, which would certainly help our economy during this pandemic, but we definitely can’t get too comfortable or complacent.

Over the Easter Break whilst we’d all love to be heading off on a holiday, it’s important that we all pull together and continue to stop the spread.

We have cancelled our planned trip away and I will be available across the Easter weekend to arrange private inspections if you’re on the look out for an acreage property.

If you’re thinking of buying or selling acreage and would like to know more about the numerous options available to you in the current market, don’t hesitate to get in contact with me.

Regards

Greg Vincent

Source: Coulters