AUGUST 2023 NEWSLETTER

Posted on 09 Aug 2023

A WORD FROM OUR SALES MANAGER

The month of August has been and gone, and for the second month running the RBA had put a hold on interest rates bringing welcome relief to mortgage holders and home buyers alike. Hopefully this trend will continue as we approach the Spring months, and will assist with renewing confidence amongst buyers. Sellers are starting to prepare for the annual Spring rush too, so appraisal numbers were on the increase which in turn has seen listing volumes increase for the month. Some quality stock will be hitting the market over the next couple of months, so hopefully there will be a natural increase in buyer activity to coincide with this. Lifestyle properties on acreage around the fringes of Bendigo remain extremely popular, as do properties between the $450,000 - $700,000 and then over the $1,000,000 mark in good locations. Pricing remains key to selling property, and if your property is priced right from the beginning of the sale campaign to meet the current market, there are still some fantastic results being achieved. Land sales remained very quiet however, and investment is still scarce as returns are not what they used to be due to a slight off balance with sale prices vs rental prices. We hope to see both of these segments improve over the coming months, particularly land sales as building costs hopefully come down and more titled land becomes available. Have a great month ahead and we hope to see you all out and about enjoying the sunshine and looking at property in September!

A BLOG FROM OUR RENTAL MANAGER/DIRECTOR

MAKING CHANGES TO YOUR RENTAL PRICE?

When should you reduce the rent?

As a savvy property investor, one key factor contributing to your success is maintaining a profitable rental portfolio. However, there may be circumstances that call for a careful evaluation of the rent you’re charging and, in some cases, reducing the rent. This article outlines when it may be a good idea to reduce the rent.

To keep pace with market conditions

When you’re faced with a decline in demand or an oversupply of rental properties, you may need to reduce the rent to remain competitive in the market. When it comes time to either offer a lease renewal to your current tenants or attract new tenants, assess vacancy rates in your area, conduct market research, and talk to your property manager about whether a rent reduction is warranted.

If you're having difficulty finding a tenant

If you can’t find a tenant, it may seem counterintuitive to reduce the rent. However, several weeks of vacancy can have a bigger impact on your rental income than reducing the rent by $10 to $30 per week. To reinvigorate interest in your property, talk to your property manager to decide on a reduction amount, advertise the reduction in the property’s listing title, and schedule new inspection times.

If you want to keep a great tenant

If you have reliable and responsible tenants, a rent reduction may be a viable option during lease renewal negotiations. A slight reduction can be seen as a gesture of goodwill and reduces the risk of vacancy and turnover costs.

COOKING FOR CHANGE

Bendigo Food Share has launched a fantastic initiative called Cooking for Change, urging local businesses to donate their time and a small fee to assist in providing a decent meal to those in need. This effort has a significant impact on our community, ensuring that those who require it the most can access the most basic of human rights - to eat a decent meal! Today, with the assistance of staff from Proactive Finance Group and Janelle Stevens Property, Tim and Paynton thoroughly enjoyed crafting these meals and hopefully providing some relief to those who need it most.

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