Are Investors Selling In 2024?

And will it help you find your dream home….

We've got our ear to the ground when it comes to Melbourne real estate, we hear first hand from agents all around the city. The word on the street is landlords are putting in the call, looking to offload their investment properties... 

There are likely a number of reasons behind the influx of landlords looking to exit the rental market. Increased land tax fees probably topping the list for many investors. Along with increased rates, new laws favouring the tenant and an increase in compliance. It could also be a case of wanting to sell because of personal circumstances of course.. Whatever their reasoning, we’re excited for the increase in stock that’s likely to follow. For our buyers that is, not so much for tenants looking to rent quality property at a reasonable price! Which seems to be a thing of the past these days. 

So what does it look like when an investor sells a tenanted property? Typically in metro Melbourne the agent will recommend the landlord sells with a maximum of 2 months left on the lease. Oftentimes they actually recommend giving notice to vacate to the tenant so they can sell the property painted, cleaned and professionally styled to increase buyer interest and therefore the end result. 

If you do come across a tenanted property.. And we suspect this will become more common, don't dismiss it based on poor presentation.. Always keep an open mind and look past personal items to see the space, natural light, location, quality of the build etc etc. 

Speaking of quality of build, a key consideration is the true condition of the property. Typically investor owned properties are not maintained to the same standard as those that are owner occupied. So it is imperative to get building inspections on these ones to understand the true condition. 

So will this predicted increase in investor owned stock help you in your search for your dream property?? This largely depends on the number of investors in your suburb/s of interest.. If you are looking in Watsonia for example, just 30% of property is tenanted, in comparison to Collingwood which has a much higher number at 68% (according to corelogic). Therefore you would expect the number of options likely to hit the market in Collingwood greater than in Watsonia . 

No matter how many tenanted properties make the switch to sale. We still don't think the supply will keep up with demand.. However, tenanted properties available off market are a huge resource for us and our clients! So give us a call if you’re in need of more options!